Green hydrogen in the spotlight: everything you need to know about the new planned investment subsidy

The planned initiative aims at promoting the development and implementation of hydrogen technologies, thus making an essential contribution to the energy transition and to climate protection.

Pursuant to the Austrian Renewables Expansion Act (EAG) that became effective in 2021, investment subsidies will be used to promote the constructions of new plants converting electricity to hydrogen or synthetic gas under certain circumstances. This supports the goals of the Austrian hydrogen strategy.

At the end of June 2024, the Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology has published a draft ordinance on EAG investment subsidies for hydrogen (EAG-Investitionszuschüsseverordnung-Wasserstoff) which is currently subject to review.

The current draft stipulates that constructors of electrolysers (plants for converting renewable electricity to renewable hydrogen or synthetic gas) may receive an investment subsidy of up to EUR 906/kW electrolysis output, however capped at 45% to 65% of eligible costs (depending on the size of the company). Eligible are only investment costs required for plant construction. Not eligible are among others spare parts, property costs, taxes and financing costs etc.

The call for funding is planned still for 2024 and a total of EUR 40 million will be available, whereby the financial resources to cover the expenses in 2024 will be provided from federal funds. One of the conditions to receive the investment subsidy is that the measures to be subsidised have not yet been implemented at the time the subsidy application is submitted.

In case you have any further questions or require assistance for preparing the funding application, please do not hesitate to contact us.

Authors: Daniela Stastny, Cornelia Kalina, Viktoria Molnar