Austria Energy Investing in Hydrogen Technology
Austria is Investing in Hydrogen Technology
Austria’s Hydrogen Strategy aims to replace 80% of fossil-based hydrogen with climate neutral hydrogen by 2030. To this end, the Austrian government has recently approved financial support worth over $820 Million for flagship hydrogen projects between 2024-2026, with the aim of building 1 GW of electrolysis capacity by 2030.
Spending will be focused on high-impact commercial projects, including
- Feedstock for the chemicals industry
- Steel industry decarbonization
- Aviation and shipping fuels
- Storage for peak load balance
Austrian industry currently runs largely on natural gas, delivered via pipeline. This brings several advantages for the rapid development of hydrogen technology. First, there is a large pool of expertise in pipeline construction, operations, and management. And second, much of the extensive pipeline infrastructure can be upgraded to safely carry hydrogen. Another strength lies in Austria’s geography, which is uniquely suitable for underground gas storage. In 2023, Austria announced the world’s first underground green hydrogen storage facility, which can store up to 4.3 GW hours of surplus electricity.
The greatest challenge to hydrogen use is the so-called “chicken/egg” problem. Industry end users want a guarantee that there will be sufficient capacity, while hydrogen producers want a guarantee that there will be sufficient demand. Stakeholders hope that the projects financed through this new funding vehicle will reduce risk and break the chicken/egg inertia.
With a detailed Hydrogen Strategy and a promise of over $820 Million in funding, Austria is investing significantly in green hydrogen solutions. Opportunities exist for U.S. companies that can deliver electrolyzers, parts and equipment, compressors, pipeline know-how and equipment, as well as those looking for partners in hydrogen technology commercialization.
To learn more about the Austrian market, find distributors for your products, and get involved in hydrogen technology projects, please contact Marta Haustein at marta.haustein@trade.gov.