On Monday 26 May 2025, Luxembourg's Ministry of the Economy unveiled the results of the first call for projects aimed at encouraging the production of renewable hydrogen in Luxembourg.
Launched on 31 October 2024, with a total budget of €110 million, this call for projects is said to reflect the government's commitment to supporting the energy transition and reducing dependence on fossil fuels through sustainable and innovative solutions.
The authorities have selected the following two projects:
- LuxHyVal Green Hydrogen Production, led by Enovos SA, with an electrolysis capacity of 5 MW;
- ECHO-WAVE, led by Energiwiss Kielen SARL, with an electrolysis capacity of 2.5 MW.
These initiatives are expected to enable the production and marketing of approximately 500 tonnes of hydrogen per year. The total amount of state aid granted to these projects amounts to €47 million, covering a subsidy period of up to three years for the implementation of the projects and up to ten years for the operation of the facility.
Luxembourg's Minister of the Economy, SMEs, Energy and Tourism, Lex Delles, stated: "The projects selected through this call for projects will enable the almost complete replacement of fossil hydrogen currently used in Luxembourg. These innovative initiatives address climate challenges and will contribute to the development of professional expertise essential to decarbonisation."
According to the ministry, eligible projects had to meet strict criteria, namely:
- the project must produce renewable hydrogen;
- applicants must identify and contract potential consumers for the hydrogen produced, thus ensuring revenue for the project;
- state aid will cover the gap between production costs and revenue generated by marketing the product. This aid will be divided into two components: investment aid, covering up to 45% of eligible costs; operating aid, capped at €7/kg (H2), with a bonus of €3/kg (H2) for additional renewable energy production capacity installed through this call;
- national aid is limited to €30 million per project and may be combined with European Union aid;
- capacity and deadline: installations must have an electrolysis capacity between 100 kW and 6 MW, be commissioned within three years and provide a progressive bank guarantee in the event of non-compliance with deadlines.
Based on the lessons learned from this pilot call for projects, the Ministry of the Economy said it intends to establish a general framework to facilitate the organisation of new calls for projects aimed at installing a certain amount of electrolysis capacity within the country.
At the same time, the ministry and relevant stakeholders are currently pursuing, "as a priority", the establishment of an infrastructure enabling the import of large quantities of hydrogen into Luxembourg.
