EU to introduce hydrogen CfDs

European Commission is proposing to roll out carbon contracts for difference through the EU Innovation Fund and to double financing for the programme

The European Commission will roll out carbon contracts for difference (CfD) for hydrogen projects via the EU Innovation Fund, according to the official RepowerEU proposal published today. The Innovation Fund is one of the world's largest funding programmes for low-carbon technologies and is financed by the sale of allowances from the EU emissions trading system (ETS). The Commission will double the funding for this year’s Innovation Fund call for large-scale projects to around €3bn ($3.2bn), financed by higher-than-expected ETS revenues ancitipated in 2022 and 2023. The call will for the first time feature a section for industrial hydrogen applications. As part of the same package, a newly c