Brussels: The European Commission has announced a significant investment of £4.6 billion aimed at enhancing net-zero technologies, electric vehicle battery cell manufacturing, and renewable hydrogen production in Europe. This initiative is part of the Commission’s efforts to strengthen European industry competitiveness while meeting climate goals.
According to Cyprus News Agency, the European Commission is launching two new calls for proposals with a budget of £3.4 billion to expedite innovative decarbonisation technologies, including electric vehicle batteries. Additionally, the second auction of the European Hydrogen Bank will be launched with a budget of £1.2 billion from EU funds and contributions exceeding £700 million from three Member States. These initiatives are funded through the Innovation Fund, utilizing revenues from the EU Emissions Trading System (ETS).
The Commission’s two calls are designed to reinforce Europe’s leadership in manufacturing innovative net-zero technologies, with an emphasis
on achieving climate neutrality by 2050. The general call for net-zero technologies, valued at £2.4 billion (IF24 Call), will support decarbonisation projects of varying scales, focusing on renewable energy components, energy storage, heat pumps, and hydrogen production.
In a groundbreaking move, a £1 billion call for electric vehicle battery cell manufacturing (IF24 Battery) will support projects that produce innovative battery cells or employ advanced manufacturing techniques. Alongside these initiatives, the Commission and the European Investment Bank (EIB) have announced a new partnership, injecting an additional £200 million to support investments in the battery manufacturing sector.
The Commission is also advancing renewable hydrogen production by launching the second auction under the European Hydrogen Bank. This initiative allocates £1.2 billion to support producers of Renewable Fuel of Non-Biological Origin (RFNBO) hydrogen within the European Economic Area. The auction’s budget has been increased
by £400 million from its predecessor, reflecting the Commission’s commitment to bolstering renewable hydrogen projects.
Project promoters for the net-zero technologies and battery calls have until April 2025 to submit applications, while renewable hydrogen auction bidders have until February 2025. The successful applicants are anticipated to sign grant agreements by the first quarter of 2026. These measures are part of the Innovation Fund’s long-term strategy to support Europe’s transition to climate neutrality by providing financial incentives for low-carbon technology investments.