Funding Bump for Austria's Largest Green Hydrogen Project

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Written by Martin Lynch, European News Editor for IIR News Intelligence (Galway, Ireland)

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Summary

Austria's largest green hydrogen project has won a funding boost of 123 million euro (US$144 million).

The largest green hydrogen project in Austria has been given a 123 million-euro (US$144 million) boost by the state-owned Austria Wirtschaftsservice (AWS) bank.

Construction is expected to start later this year on the planned green hydrogen plant in Bruck an der Leitha (Lower Austria), which is being co-developed by a joint venture of Austria's oil and gas major, OMV (Vienna), and Abu Dhabi's state-backed renewable energy company Masdar (Abu Dhabi, United Arab Emirates). 

Project Details

The 140-megawatt (MW) plant is scheduled to start operations at the end of 2027 and will then be one of the five largest in Europe, according to OMV. It will produce up to 23,000 tonnes of green hydrogen annually using renewable energy from wind, solar and hydropower, while helping to offset up to 150,000 tonnes of carbon emissions per year at OMV's refinery in Schwechat. That equates to roughly 10% of the refinery's current direct, production-related emissions. It comes on the back of the company's successful commissioning of a 10-MW hydrogen plant at the Schwechat refinery last April.

The UpHy electrolyzer is currently the largest operational green hydrogen electrolysis plant in Austria and produces 1,500 tons of green hydrogen a year. The Bruck hydrogen plant will be connected to the Schwechat refinery via a 22-kilometer (km) hydrogen pipeline. Operating and building permits have already been granted, and the project has been approved for funding by the European Hydrogen Bank. In total, the project is expected to cost around 700 million euro (US$818 million). OMV has signed an engineering, procurement and construction (EPC) contract with a Siemens Energy (Munich, Germany) consortium for the plant's construction and electrolysis technology. 

"By generating green hydrogen locally, this plant with a 22-kilometer pipeline running directly to the OMV refinery in Schwechat will make a considerable contribution to our decarbonization," commented Martijn van Koten, OMV Executive Vice President, Fuels and Chemicals. 

Austria's Hydrogen Ambitions

Austria has a stated goal of becoming a central hub for green hydrogen in Europe and wants to have 1 GW of electrolyser capacity installed by 2030, while replacing 80% of fossil-based hydrogen in energy-intensive industries within the same timeframe. Industrial Info is tracking 11 green hydrogen projects in Austria worth more than US$940 million in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. 

Austria's plan is to invest 820 million euro (US$958 million) between 2024 and 2026 in hydrogen production, storage and infrastructure. Last October, it kicked off its largest funding commitment with almost 275 million euro (US$321 million) to support four national hydrogen projects. The government is now working on a new gas industry act, that will formalise the role for hydrogen, kickstart the creation of a hydrogen network using existing gas pipeline infrastructure and begin integration with the wider European hydrogen grid. The new law will be enacted this summer. In the meantime the country, along with Italy, Germany, Algeria and Tunisia signed a joint declaration of intent last year to continue their work on the proposed SouthH2 Corridor project, which will carry renewable hydrogen moire than 3,300 km from North Africa to the three European countries.

Key Takeaways

• Austria's largest green hydrogen project has won a funding boost of 123 million euro (US$144 million)
• The government wants to have 1 GW of electrolyser capacity installed by 2030 and has committed to spending 820 million euro (US$958 million) by 2026 in hydrogen production, storage and infrastructure.
• Industrial Info is tracking 11 green hydrogen projects in Austria worth more than US$940 million in investment.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).