Zabala Innovation succeeds in the European green hydrogen auction

Zabala Innovation has successfully supported two projects in the most recent green hydrogen auction held under the Innovation Fund 2024 and has another five currently on the waiting list. Including these and those approved last year, the consultancy now totals four projects it has backed that will receive funding in Spain and Portugal. “We have been at the side of the coordinators from the very early stages through to final submission, ensuring that each proposal met the criteria and was ready to compete at the highest level,” explains Igor Idareta, head of Zabala Innovation’s European sustainability programmes team.

The latest green hydrogen auction has mobilised close to €1 billion in investment for the development of technology and production across the European Economic Area (EEA). A total of 15 projects were selected to receive this funding, with an expected production of nearly 2.2 million tonnes of green hydrogen over the next decade—helping to avoid more than 15 million tonnes of CO₂ emissions. The hydrogen produced will be used in sectors such as transport, the chemical industry, and the production of methanol and ammonia.

“Securing European funding is not a simple process; it requires deep knowledge of the criteria and the ability to structure strong proposals. Our role is to support the project teams to ensure they apply with the strongest possible case,” Idareta explains. The Spanish consultancy has built its expertise in this area over several years of supporting initiatives related to the energy transition and sustainable innovation, and this recent success confirms its capacity to support complex projects in an increasingly competitive European market.

The Innovation Fund is financed through revenues from the EU’s emissions trading system and supports clean technologies with high potential for emissions reduction. The auction was held as part of the European Hydrogen Bank, whose objective is to facilitate the adoption of cleaner fuels to replace natural gas, coal, and oil—particularly in sectors where decarbonisation is more challenging.

Broader scope

Beyond the 12 green hydrogen generation projects with general uses, this auction included, for the first time, a dedicated budget for hydrogen producers with buyers in the maritime sector. These will receive subsidies ranging from €0.45 to €1.88 per kilogram. This segment enabled the selection of three bids, which received €96.7 million in support. Overall, the 15 selected projects were granted between €8 million and €246 million, distributed over periods of up to 10 years.

According to Idareta, “These results reflect the maturity of the technology and the growing interest in green hydrogen—but also the need for specialised guidance to navigate complex call requirements and maximise the chances of success.” His team advises projects throughout the entire cycle, from strategic definition to final submission—an essential factor in accessing funds that are becoming increasingly demanding and competitive.

Spain and Portugal are among the countries where Zabala Innovation has helped secure these successes. At the European level, Spain, Lithuania, and Austria are deploying up to €836 million in national funding through the auction-as-a-service function. This mechanism allows Member States to fund projects that meet the European auction criteria but were not selected due to budget limitations, thus expanding the initiative’s overall reach.

For Idareta, the key lies in “supporting coordinators and partners throughout the entire process. It’s not just about preparing a good proposal; it’s about understanding each consortium’s strategy and how to optimise their positioning in front of evaluators.” He adds that the submission process involves complex stages, including the verification of legal and technical compliance and coordination among multiple international and sectoral actors.

Strategies in motion

The third auction, which will also have a budget of €1 billion, is scheduled for late 2025. Idareta also points out that the future lies in “strengthening cooperation between producers and end users, as reflected in the inclusion of projects with buyers in the maritime sector in the recent auction.” These types of partnerships are strategic for ensuring demand and the economic viability of hydrogen—considered essential to enabling European industry to meet its decarbonisation targets.

The European Commission also plans to launch the Hydrogen Mechanism—a digital platform designed to connect buyers and sellers, provide information, and foster commercial partnerships. This tool aims to stimulate the market and complement public funding with private investment, thereby accelerating the deployment of this energy source.

Zabala Innovation’s accumulated experience places the consultancy in a privileged position to continue supporting projects in this growing field. “For us, each success is the result of joint and sustained work with the project teams. We’re proud to bring our technical and strategic expertise to help make these projects a reality,” Idareta concludes.