Austria's Renewable Hydrogen Funding Act and the European Union's IPCEI Hy2Infra Initiative
Key Ideas
- Austria's Federal Act on the Funding of Renewable Hydrogen of Non-Biogenic Origin (WFöG) with a budget of €820 million supports the construction of new renewable hydrogen plants to achieve climate neutrality.
- European countries, including Germany, France, and Italy, are collaborating on the IPCEI Hy2Infra initiative, investing over €6.9 billion in hydrogen infrastructure development, covering various sectors of the hydrogen value chain.
- The EU Commission noted the necessity of IPCEI Hy2Infra to provide investment incentives, ensuring companies' success and creating a repayment mechanism for aid recipients.
- The Austrian and European initiatives aim to establish a competitive market position in hydrogen production and infrastructure, aligning with national and EU energy and climate objectives.
The Austrian National Council recently passed the 'Federal Act on the Funding of Renewable Hydrogen of Non-Biogenic Origin (Hydrogen Funding Act - WFöG),' allocating €820 million to support the construction of new plants for renewable hydrogen production in Austria. This initiative aims to enhance climate neutrality and increase the share of renewable hydrogen in the country.
Moreover, several European countries, including Germany, France, Italy, and others, are jointly working on the 'Important Project of Common European Interest' (IPCEI Hy2Infra) to expand hydrogen infrastructure. This initiative involves investing €6.9 billion in public funds to mobilize additional private investments, focusing on various aspects of the hydrogen value chain such as electrolysers, pipelines, storage facilities, and port infrastructure.
The European Commission approved the IPCEI Hy2Infra, emphasizing its role in providing investment incentives and ensuring successful projects. The repayment mechanism for aid recipients underlines the commitment to generating additional net income.
Both the Austrian WFöG and the European IPCEI Hy2Infra initiatives aim to accelerate the development of hydrogen infrastructure, aligning with national and EU climate and energy targets. While significant progress has been made, legal issues related to European regulations and state aid laws still need resolution to advance the hydrogen industry and achieve a sustainable energy system based on renewable sources.
Topics
Production
Renewable Energy
Infrastructure
Investment
Law Firm
European Union
Energy System
Climate Neutrality
State Aid
Latest News