The Austrian government has unveiled a comprehensive plan to significantly ramp up domestic production and imports of renewable hydrogen, a key component in its energy transition strategy. 

The initiative, detailed through several pieces of new legislation, aims to bolster the country’s energy independence and meet future climate goals, with two pivotal bills at the core. 

One of the bills proposes a €20 million ($23.7 million) subsidy program to help cover the capital costs of new electrolysis plants, which use electricity to split water into hydrogen and oxygen while the second bill would establish a national certification system for renewable hydrogen, ensuring it meets European Union standards. 

According to the economy and energy ministry, this certification will make Austrian hydrogen "eligible for funding, internationally tradeable and credibly certified."

The ministry indicated the bills are currently under review and could be enacted quickly, paving the way for rapid implementation. The government is also pushing for a new regulatory framework to finance crucial hydrogen infrastructure, including pipelines and storage facilities.

Austria has been working towards meeting its climate goals through multiple projects. One of the most ambitious projects is the 3300-km South2 corridor, a proposed pipeline that would connect North Africa with Austria and Germany via Italy. 

The project has been designated a "Project of Common Interest" by the EU, providing access to special permitting and funding benefits, with the Austrian ministry now projecting the pipeline could be operational by 2035, a more conservative and "realistic" timeline than the previously announced 2030 target.

Despite these forward-looking plans, Austria’s domestic hydrogen ambitions have faced some recent challenges. The country, which has a target of 1 GW of installed electrolysis capacity by 2030, is likely to fall short of this goal. 

A recent setback occurred when utility Verbund and nitrogen producer LAT Nitrogen canceled a 60 MW renewable hydrogen project in Linz, despite having secured EU funding.