The European Commission has greenlit a significant initiative aimed at bolstering hydrogen infrastructure, marking it as the third Important Project of Common European Interest (IPCEI) under EU State aid regulations. Called 'IPCEI Hy2Infra', the project is anticipated to catalyze the production of renewable hydrogen, a move set to diminish reliance on natural gas while aligning with the objectives outlined in the European Green Deal and the REPowerEU Plan.

Jointly spearheaded and submitted by seven Member States—France, Germany, Italy, the Netherlands, Poland, Portugal, and Slovakia—the IPCEI Hy2Infra initiative is poised to receive up to €6.9 billion in public funding. This substantial investment is projected to unlock an additional €5.4 billion in private capital, signaling a significant commitment to the development of hydrogen infrastructure across the EU.

A total of 32 companies, spanning various Member States and encompassing small and medium-sized enterprises (SMEs), are set to engage in 33 individual projects under the umbrella of the IPCEI, further underscoring the collaborative and inclusive nature of this transformative endeavor.

IPCEI Hy2Infra will cover a wide part of the hydrogen value chain by supporting:

1. the deployment of 3.2 GW of large-scale electrolysers to produce renewable hydrogen;
2. the deployment of new and repurposed hydrogen transmission and distribution pipelines of approximately 2,700 km;
3. the development of large-scale hydrogen storage facilities with capacity of at least 370 GWh; and
4. the construction of handling terminals and related port infrastructure for liquid organic hydrogen carriers ('LOHC') to handle 6,000 tonnes of hydrogen a year.

In addition to providing substantial financial backing, participants in the IPCEI Hy2Infra initiative will collaborate extensively on interoperability and common standards. This strategic move aims to eliminate potential barriers and streamline future market integration efforts across the European Union.

The IPCEI Hy2Infra is poised to catalyze the gradual emergence of an interconnected hydrogen infrastructure network spanning different regional clusters. Anticipated projects are set to commence in the near term, with large-scale electrolysers projected to become operational between 2026 and 2028. Similarly, pipeline installations are slated for completion between 2027 and 2029, contingent upon the geographic area.

Aiming for an overall completion date of 2029, the IPCEI Hy2Infra encompasses a diverse array of projects with varying timelines. These timelines are subject to the specifics of individual projects and the companies involved.

This initiative builds upon the foundations laid by the first and second IPCEIs focusing on different aspects of the hydrogen value chain. The Commission previously approved the IPCEI 'Hy2Tech' on 15 July 2022, concentrating on hydrogen technology development for end users. Subsequently, on 21 September 2022, the Commission approved IPCEI 'Hy2Use', which centers on hydrogen applications within the industrial sector. IPCEI Hy2Infra fills a crucial gap by focusing on infrastructure investments, thus complementing the earlier initiatives.