Croatia’s ambitions to establish a domestic green hydrogen market moved a step closer to commercialization after solar panels were fully installed at the Rijeka Refinery, providing the renewable electricity base for a facility expected to produce 1,500 metric tons of green hydrogen annually from 2027.
The project, led by INA with engineering group KONČAR as the principal contractor, combines an 11 MW photovoltaic power plant with an electrolyzer that remains under construction and is scheduled for completion by the end of 2026. The overall investment is valued at approximately €61 million, including €15 million in support secured through Croatia’s National Recovery and Resilience Plan.
For Croatia, the development represents more than an industrial decarbonization initiative. It is a test of whether relatively small hydrogen projects integrated into existing refining infrastructure can establish commercially viable demand before larger European hydrogen corridors become operational.
The renewable electricity system has now reached mechanical completion, fulfilling initial obligations tied to public funding requirements. Final testing and technical verification activities remain before commissioning can proceed. The electrolyzer installation, which ultimately determines production capacity and operational performance, is still underway.
At full operation, the facility’s projected output of 1,500 tons per year positions it as a modest contributor by international standards but significant within the Croatian market. By comparison, large-scale hydrogen developments across Northern Europe increasingly target annual production volumes measured in hundreds of thousands of tons. The Rijeka model instead reflects a decentralized approach centered on local industrial consumption and transport applications.
That strategy may prove more resilient in the near term. European hydrogen markets continue to face a fundamental challenge: supply ambitions are advancing faster than confirmed demand. Refining operations offer one of the few established consumption pathways, allowing projects such as Rijeka to reduce commercial uncertainty by combining internal use with external market opportunities.
INA plans to direct a portion of the hydrogen output toward refinery processes while supplying transport customers as demand develops. The dual-use approach aligns with broader European efforts to create anchor demand from existing industrial sectors before scaling dedicated hydrogen value chains.
The economics, however, remain closely tied to renewable power availability and public support mechanisms. The dedicated 11 MW solar installation provides a degree of insulation from wholesale electricity volatility, yet intermittent generation limits electrolyzer utilization rates unless supplemented by grid power or additional renewable capacity. Lower operating hours can significantly affect hydrogen production costs, particularly for projects of relatively modest scale.
Croatia’s National Recovery and Resilience Plan funding helps offset some of those challenges, reflecting a wider European pattern in which early commercial hydrogen facilities rely heavily on public capital to bridge cost gaps with conventional alternatives. Whether similar projects can proceed without substantial subsidies remains an unresolved question across the continent.
The participation of KONČAR also highlights an emerging industrial dimension to regional energy transitions. Domestic engineering capabilities are increasingly becoming a strategic consideration as governments seek to maximize local economic value from decarbonization investments. For Croatia, deploying national expertise alongside state-backed financing creates a framework that extends beyond emissions reductions to industrial development objectives.
