Austria Pushes Ahead with Hydrogen Offensive: €275 Million for Four Key Projects
Austria is underpinning its ambition to become the “European hub for green hydrogen” with a massive investment: four key national projects are being funded with a total of €274.8 million. This was announced by the Ministry of Economic Affairs.
Austria launches the next phase of its hydrogen strategy. / Picture: © Wikimedia Commons / Doremo / CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)
Economics Minister Wolfgang Hattmannsdorfer (ÖVP) emphasized the importance of national investment: “While the EU is dividing just under one billion euros among 15 projects in five member states, Austria alone is investing 275 million euros in four national projects.” The funding decision was already made in October of this year, and the project will be handled by Austria Wirtschaftsservice (aws).
Framework conditions for €820 million
The €275 million is part of a much larger package. A total of €820 million will be available until 2026 through the Hydrogen Promotion Act (WFöG), which supports the production of renewable hydrogen from non-biogenic sources (green hydrogen). The WFöG lays the foundation for competitive auctions through which operators of production facilities receive a fixed premium per unit of hydrogen produced for a period of ten years.
The path to a national and European network
In order to transport hydrogen from the production site to industrial consumers – for example, in the chemical, steel, or fertilizer industries – it is essential to establish a dedicated infrastructure.
The new Gas Industry Act is expected to create the necessary legal framework for this by the middle of next year. This law will regulate the establishment of a national hydrogen start-up network and its seamless connection to the European hydrogen network. The Austrian gas industry estimates that around €3.5 billion in investment will be needed to convert the existing gas infrastructure and build new pipelines in order to keep the country in the game.
Another central element of the strategy is Austria's integration into the so-called “Southern Corridor.” This is a hydrogen pipeline connection that will transport green hydrogen from Algeria and Tunisia to Europe, which should support Austria's long-term security of supply. The Southern Corridor is a key infrastructure project for diversifying energy supplies.