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New EU platform to raise European green hydrogen production
10/9/2025
News
In a bid to boost European energy security, diversification and decarbonisation, the European Commission (EC) has launched a Hydrogen Mechanism under the EU Energy and Raw Materials Platform. The online platform is designed to help users source renewable and low-carbon green hydrogen and its derivatives (ammonia, methanol and sustainable aviation fuel) efficiently.
Stakeholders can register on the platform and subscribe to the EU Hydrogen Mechanism. The first round matching demand and supply is scheduled for this month, September 2025.
EU Commissioner for Energy and Housing Dan Jørgensen welcomed the Hydrogen Mechanism, which he said ‘empowers the European industry to seize competitive opportunities while advancing towards greater security of supply and decarbonisation’.
Hydrogen is considered to play a significant role in decarbonising industrial processes and industries, particularly in hard-to-abate carbon emission sectors such as steel, chemicals, cement and aviation, in line with Europe’s express commitment to reach carbon neutrality by 2050 and become independent of Russian fossil fuels before 2030.
What’s driven the new hydrogen initiative?
The regulation on the internal markets for renewable gas, natural gas and hydrogen (EU/2024/1789) mandated the EC to set up a mechanism under the European Hydrogen Bank to support the market development of hydrogen in the short-term, until the end of 2029.
The new Hydrogen Mechanism aims to empower market participants by matching and aggregating demand and supply, helping to identify specific infrastructure development needs and useful sources of financial/investment information.
The EC recognises that the EU’s targets for the consumption of renewable hydrogen in industry and transport are ambitious. Its website points out that on the supply side, ‘only a small number of hydrogen projects have reached final investment decisions and not many producers and consumers have managed to conclude transactions… despite significant interest from producers and consumers to connect’.
The new Hydrogen Mechanism is aimed to help scale-up EU hydrogen production by increasing supply and demand transparency and helping buyers and suppliers connect, and will operate under the European Hydrogen Bank. The Bank was launched in 2022 by the Commission as a financing instrument (but not a physical institution) to create investment security and business opportunities for European and global renewable hydrogen production.
The second domestic auction for the production of renewable hydrogen via the Innovation Fund closed on 20 February 2025, under which 15 renewable hydrogen production projects were selected across five countries within the European Economic Area (Spain, Finland, Germany, the Netherlands and Norway) to receive €992mn in EU funding, expected to produce 2.2mn tonnes of green hydrogen over 10 years. A third European Hydrogen Bank auction with a budget of up to €1bn is planned for the end of 2025.
