EU allocates €650 million to accelerate hydrogen and cross-border energy projects across Europe

The European Commission has designated 14 cross-border energy projects to receive a combined €650 million from the Connecting Europe Facility, backing a mix of electricity grid upgrades and hydrogen infrastructure that EU officials say will strengthen wholesale power links and support the deployment of low-carbon fuels across member states.

According to h2-view, €176 million of the package has been ring-fenced for hydrogen-related initiatives. The largest single allocation , roughly €120 million , is slated for RWE’s planned expansion of underground hydrogen storage at Gronau-Epe in Germany. The project will convert two salt caverns to provide about 38 million cubic metres of hydrogen storage and is scheduled to begin commercial operations in July 2027, the company has said. The remaining €56 million will fund feasibility, engineering and preparatory studies for seven hydrogen projects in the Netherlands, Germany, France, Bulgaria, Slovakia and Austria.

Industry participants named in funding proposals include Gasunie and Vopak, whose proposed ACE Terminal green ammonia import facility at the Port of Rotterdam is earmarked for about €25.62 million; Uniper’s Green Wilhelmshaven import terminal, which is flagged for €10.63 million; and a salt-cavern hydrogen storage study in France led by Engie and Air Liquide, which could receive €7.54 million, h2-view reports. Smaller allocations include studies on the use of green hydrogen in French industry (€4.2 million), Bulgaria’s domestic hydrogen network (€4.56 million), Slovakia’s hydrogen backbone (€2.53 million) and preparatory FEED work for Austria’s backbone (€1.46 million).

The bulk of the package , approximately €470 million , will finance six electricity projects, including investments in smart-grid technologies and cross-border interconnectors intended to improve system flexibility and integrate greater volumes of renewables, publications including Euronews and EU News reported. National breakdowns highlighted in media summaries show substantial awards for Spain and several central and eastern member states as part of the same selection round.

The Commission framed the funding as both a competitiveness and security measure. “The projects we are supporting financially will enhance Europe’s competitiveness and energy security, bringing us on a steady pathway towards energy independence,” Energy Commissioner Dan Jørgensen said in a statement reported by h2-view.

For stakeholders in industrial decarbonisation the allocations signal a dual priority: scaling hydrogen supply chains and ensuring the power systems that will produce and transport renewable electrons are upgraded in tandem. The support for import terminals and large-scale storage points to a recognition that Europe will need both domestic production and international supply to meet projected demand for green molecules across heavy industry, transport and long-duration storage applications.

At the same time, the emphasis on preparatory studies , rather than final investment grants for many hydrogen projects , underscores that significant technical and permitting work remains before construction can begin. According to the reporting, much of the funding is intended to advance engineering, permitting and cross-border coordination so projects can reach investment-ready status.

Market participants and infrastructure developers will watch the Gronau-Epe timetable closely given its scale and planned 2027 commercial start, which, if realised, would provide a major buffer for seasonal and ramping needs as electrolyser capacity and import flows expand. Meanwhile, planned import hubs such as ACE Terminal and Wilhelmshaven reflect an EU strategy that balances domestic production with diversified supply routes of ammonia, liquefied or gaseous hydrogen.

The Commission’s selection also illustrates the policy challenge of sequencing: electricity networks must be reinforced to reliably carry low-carbon power to electrolysers and storage, while hydrogen infrastructure requires anchor customers and offtake to justify large capital investments. By channeling funding into both domains, Brussels aims to reduce those bottlenecks, but industry sources caution that further public and private capital will be needed to translate studies and pilot facilities into operational, long-lived infrastructure.

According to media coverage of the selection, the grants touch 13 EU member states and form part of a broader push to modernise cross-border energy links. For project developers, grid operators and industrial consumers pursuing decarbonisation, the awards offer early-stage support that could accelerate project timelines if matched by national permitting progress and commercial financing.