BRUSSELS — The European Commission has announced a €4.6 billion investment to support net-zero technologies, electric vehicle battery cell manufacturing, and renewable hydrogen production. This initiative, funded through the Innovation Fund using revenues from the EU Emissions Trading System (ETS), aims to enhance Europe’s industrial competitiveness while meeting agreed climate goals.
The Commission has launched two new calls for proposals with a combined budget of €3.4 billion. The first call, valued at €2.4 billion, will support various decarbonisation projects, including those focused on renewable energy components, energy storage, heat pumps, and hydrogen production. The second call, specifically for electric vehicle battery cell manufacturing, is worth €1 billion and aims to strengthen Europe’s position in this sector.
Additionally, the Commission is launching the second auction of the European Hydrogen Bank, allocating €1.2 billion from EU funds, plus over €700 million from three Member States. This auction aims to accelerate the production of renewable hydrogen within the European Economic Area (EEA).
Enhancing Resilience and Competitiveness
Both the battery call and the hydrogen bank auction include new resilience criteria designed to protect Europe against dependency on a single supplier, thereby enhancing the continent’s industrial resilience and strategic autonomy.
The general call for net-zero technologies will assess projects based on their potential to reduce greenhouse gas emissions, innovation, project maturity, replicability, and cost efficiency. For the first time, Member States will have the option to complement the Innovation Fund with national funding schemes, a mechanism known as ‘Grants-as-a-Service.’ This allows Member States to leverage the Innovation Fund’s evaluation process and streamlined State aid approval process.
Supporting Electric Vehicle Battery Manufacturing
The €1 billion call for electric vehicle battery cell manufacturing is part of a broader strategy to mobilise investment in this crucial sector. The Commission, in partnership with the European Investment Bank (EIB), has initiated a new collaboration to support investments in the EU’s battery manufacturing sector. This includes a €200 million top-up to the InvestEU programme from the Innovation Fund, aimed at addressing financing challenges and enabling additional EIB venture debt operations over the next three years.
Accelerating Renewable Hydrogen Production
The second auction under the European Hydrogen Bank will support renewable hydrogen production projects, with a dedicated budget of €1 billion for general hydrogen production and €200 million for projects with off-takers in the maritime sector. The Commission is also introducing an ‘Auctions-as-a-Service’ mechanism, allowing Member States to finance projects that were not selected for Innovation Fund support due to budgetary limitations. Spain, Lithuania, and Austria have pledged up to €836 million in national funds to support renewable hydrogen production projects in their countries.
Next Steps
Project promoters for the net-zero technologies and battery calls have until 24 April 2025 to apply via the EU Funding and Tenders Portal. Successful applicants are expected to sign grant agreements by the first quarter of 2026. For the renewable hydrogen auction, bidders have until 20 February 2025 to apply, with successful bidders signing grant agreements within nine months after the call closure.
