Norwegian hydrogen tech firm Hystar AS has clinched a €26 million ($28.1m) grant from the EU Innovation Fund, a move expected to drive automation of its PEM electrolyser stack production to an industrial scale.
The funding aims to support the construction and operation of an automated gigawatt (GW) production line at Hystar’s Høvik, Norway facility, positioning the company to meet global demand for green hydrogen solutions in hard-to-abate sectors.
The EU Innovation Fund, recognised as one of the largest backers of low-carbon technologies worldwide, chose Hystar for its PEM (proton exchange membrane) electrolyser technology.
According to Hystar, its Hystar proprietary PEM stack offers efficiencies that promise cost reductions, enhanced performance, and safety in green hydrogen generation. By automating production, Hystar aims to streamline manufacturing and harness existing supply chains, thus improving access and affordability of green hydrogen.
Currently, Hystar’s Høvik facility operates a 100-megawatt (MW) production line, which is already fulfilling commercial orders. The EU funding will support the transition to an automated GW factory with an anticipated output of 1.5 GW by 2027, and scalability up to 4.5 GW by 2031.
Hystar’s CEO, Fredrik Mowill, highlighted the significance of this development for Europe’s green hydrogen sector, stating, “Our Høvik GW factory demonstrates our commitment to rapidly expanding our European operations and meeting the strong demand for our technology globally.”
“The EU Innovation funding will enable us to drive unseen levels of cost and production efficiencies,” Mowill added, pointing to the urgent need for competitive hydrogen solutions in sectors like heavy industry and transport.
Europe’s green hydrogen mission
Europe is accelerating its green hydrogen push, with several large-scale projects across the continent working to meet ambitious EU targets for renewable energy. According to the European Commission, the EU aims to produce 10 million tonnes of green hydrogen domestically and import another 10 million tonnes annually by 2030.
This objective aligns with the REPowerEU strategy, which seeks to reduce dependence on Russian fossil fuels and achieve climate goals.
Projects such as Hy2Tech, supported by €5.4 billion ($5.8bn) in state aid, and the German-based AquaVentus initiative, which plans to generate one million tonnes of green hydrogen annually from North Sea wind farms by 2035, are key players.
According to the International Energy Agency (IEA), the European green hydrogen sector will require €300 billion ($324.7bn) in investment by 2030 to reach these targets.
