The European Commission approved up to €5.4 billion in public funding from fifteen Member States for initiatives to increase the generation of clean hydrogen and find new uses for hydrogen.
It is anticipated that this public backing will also attract private investments of 8.8 billion euros. Finland is one of the participating Member States in the project.
“As the electrification of industry progresses and transportation becomes cleaner, we will require a great deal more clean electricity production. Hydrogen will play a crucial part in this process. Investing in the hydrogen economy, Finland has made a long-term commitment to better energy solutions and new economic prospects. Together with other EU nations, we will become a bigger player in the market for clean hydrogen, says Economic Affairs Minister Mika Lintila.
The goal of the Commission is to produce 10 million tonnes of pure hydrogen by 2030. The goal of the authorized projects is to foster cross-border collaboration between businesses in the Member States. Cooperation is required for Europe to become a leader in the industrial production and utilization of hydrogen.
Neste Corporation, a Finnish corporation, is featured in the inaugural IPCEI hydrogen economy package. The authorized Neste projects will develop methods for producing and employing clean hydrogen in Neste’s refining operations.
In Finland, Business Finland will make the final funding choice in the fall of 2022.
There are 35 companies involved in the 41 projects now approved by the Commission, some of which are small and medium-sized businesses and start-ups. Also included in the extensive partnership are universities and research institutes. It is anticipated that the initiatives will have major multiplier impacts throughout Europe.
In Finland, projects relating to the value chain for the hydrogen economy are sponsored by the EU’s Recovery and Resilience Facility as part of the Sustainable Growth Programme for Finland. The projects help the government’s goal of making Finland carbon-neutral by 2035.
In accordance with Finland’s Sustainable Growth Programme, financing will be granted to investments in the hydrogen value chain, where hydrogen will be utilized by industry, transportation, and any other innovative carbon dioxide-based products and solutions. The projects’ hydrogen production will be predicated mostly on the use of low-carbon power. Business Finland has organized two IPCEI application rounds for the hydrogen economy, so the Commission is likely to accept more Finnish company-submitted ideas by the end of the year.
The financed initiatives must completely fulfill the EU’s Recovery and Resilience Facility’s climate requirements (RRF). Additionally, projects must adhere to the “do no substantial harm” (DNSH) concept, which states that investments must not significantly undermine environmental aims.
The acronym IPCEI stands for Important Project of Common European Interest. IPCEIs are subject to distinct, less rigorous State aid standards that let States to help businesses with greater flexibility than usual.
