Austria has officially started construction of what will become the country's largest green hydrogen production facility, a 12.5 MW plant being developed by RAG Austria and built by technology group ANDRITZ.

According to a joint announcement from RAG Austria AG and ANDRITZ, the project is designed to convert surplus solar electricity generated during the summer into green hydrogen, allowing renewable energy to be stored for months and used during periods of higher demand, particularly in winter.

The facility, which is expected to begin operations by the end of 2026, will produce approximately 17 million cubic metres of green hydrogen annually, equivalent to more than 1,500 tonnes. ANDRITZ will deliver the project under an engineering, procurement and construction (EPC) contract, taking responsibility for the plant's design, construction and commissioning.

Unlike batteries, which are mainly used for short-term energy storage, the project is intended to provide seasonal energy storage. During periods of high solar generation in summer, excess renewable electricity that cannot be immediately consumed will power electrolyzers to produce green hydrogen from water. That hydrogen will then be stored and later used during winter, when renewable electricity production is lower and energy demand is higher.

The project also aims to supply domestically produced green hydrogen to industrial customers, reducing reliance on imported fuels while supporting the expansion of renewable energy across Austria.

"In light of rising demand for green hydrogen in industry as well as in heating and power generation, particularly in winter, it is essential that Europe now begins producing its own hydrogen and consistently leverages available surplus electricity resources," said Markus Mitteregger, CEO of RAG Austria.

As part of its scope, ANDRITZ will supply the complete hydrogen production facility, including hydrogen purification and compression systems.

The project further strengthens ANDRITZ's position in the green hydrogen sector as the company continues expanding its portfolio of technologies supporting the energy transition.

The announcement was made by RAG Austria AG and ANDRITZ during the official groundbreaking ceremony for the project.