EU Backs First Hydrogen Build With Landmark Grant

A €650M EU funding round includes the first construction grant for hydrogen, backing RWE’s storage project in Germany

23 Mar 2026

The European Commission has awarded €650mn to cross-border energy infrastructure, including the first Connecting Europe Facility (CEF) grant to fund construction of a hydrogen project, marking a shift in support for the sector.

Germany’s Gronau-Epe hydrogen storage facility, led by RWE, received €120.11mn to begin construction. It is the first time CEF Energy funding has been used for physical development rather than early-stage studies.

The move signals that the project has cleared technical, regulatory and commercial hurdles, allowing public funds to support construction. Hydrogen projects across Europe have often stalled at feasibility stage, making the Gronau-Epe award a potential precedent for the sector.

Underground storage is seen as critical to the development of a hydrogen market. Production of green hydrogen depends on intermittent wind and solar supply, creating a need for storage to balance output and meet steady industrial demand.

The Gronau-Epe site is located in Germany’s industrial corridor, where sectors such as steel, chemicals and heavy manufacturing are expected to drive future hydrogen consumption.

The wider funding round covers 14 projects, with eight linked to hydrogen. The ACE terminal at the Port of Rotterdam secured €25.62mn for feasibility work, supporting its role as a potential import hub for northwest Europe.

Additional study grants were awarded to projects in France, Bulgaria, Slovakia and Austria, reflecting efforts by Brussels to expand planning capacity across multiple markets.

The Commission is expected to launch its next infrastructure funding call between April and June 2026. Further construction awards would indicate whether support for hydrogen is shifting from planning to deployment across the bloc.