Hydrogen market in Austria

Austria is one of 27 member states in the European Union (EU). Its GDP per capita in terms of purchasing power parity (PPP) is around USD 63,314. The economy is considered a free market with a strong social focus. 

Austria is committed to international climate targets as well as proactive climate protection and energy policies. Key industrial sectors include:

  • food and drinks
  • mechanical and steel engineering
  • chemical and automotive
  • electronics
  • wood, pulp and paper

Austria is strategically positioning hydrogen as a key element in its energy transition. It is aiming for climate-neutral hydrogen production with imports to decarbonize energy-intensive industries. The focus is on power-to-gas technology that uses surplus wind and solar power for hydrogen production and sector coupling. Austria’s hydrogen strategy outlines plans to build 1 Gigawatt (GW) of electrolysis capacity by 2030, although this ambitious target may be adapted. The goal is to replace fossil fuel-based hydrogen, and establish collaborative platforms like Hydrogen Partnership Austria (HyPA) and WIVA P&G for industry stakeholders and regional hydrogen initiatives. 

Austria currently uses around 132,000 tonnes of hydrogen per year. Most of the current consumption is used for fertilizer production and refining based on natural gas, also known as “grey hydrogen”. In addition to developing new areas of application, these quantities need to be replaced by “green hydrogen” as a matter of priority within the next few years.

Key opportunities for Canadian cleantech companies in Austria

  • Austria will develop a hydrogen import strategy in 2026, this will be ideal timing to put Canada on the map as a supplier of low-carbon ammonia. Austria supports initiatives to produce carbon-neutral hydrogen to decarbonize energy-intensive industries, especially in sectors where electrification is difficult.
  • In October 2025, EUR 275 million in national funding was announced for 4 projects.
  • The focus is placed on power-to-gas technology, storing surplus summer renewable energy (especially wind and solar) for winter use.
  • Austria's national hydrogen strategy outlines ambitious goals, including building 1 GW of electrolysis capacity by 2030. This may be almost cut in half due to the ramp up of the hydrogen economy moivng slower than expected. 
  • Around EUR 125 million will be provided by the EU Resilience fund to promote integrated projects along the hydrogen value chain, especially covering hydrogen production, storage and applications.

Industry highlights

28,25 MW of installed electrolyser capacity in Austria (as of November 2025)

1 GW of electrolysis capacity targeted by 2030

EUR 125 million in funding by the EU resilience fund

132,000 t of H2 currently needed per year in Austria

Challenges for Canadian hydrogen companies in Austria

  • Integration into the Austrian energy industry can be challenging due to long-standing local partnerships.
  • Successful project development is often closely linked to the availability of government funding.
  • In terms of commercialization, there is a gap indicated by the low technology readiness levels (TRL) of some technologies related to hydrogen.
  • The business case for low-carbon hydrogen is closely linked to EU policy. The implementation of RED III transposition into national law (hopefully by summer 2026) will be crucial. All EU member states are currently facing delays.
  • Levelized cost of low-carbon hydrogen must be competitive with price of natural gas plus penalty (CO2 price) for use in industrial processes. This is the key focus of Austria’s hydrogen strategy (emissions-intensive industries).

Austrian business landscape

  • Austria is among the top third of wealthiest countries in the EU with a strong purchasing power.
  • Conditions for foreign investment are excellent given the high level of social security and political stability.
  • Austria is industrially strong and a hub for energy transport, providing international companies with opportunities to leverage the country's industrial capabilities and infrastructure.
  • Austria is the perfect testbed for a wide range of key solutions for a climate-neutral future powered by hydrogen.
  • International companies entering the Austrian market can access funding opportunities.

Notable projects and developments

  • Hydrogen value chains: The "Hydrogen Valley" in Austria consists of 17 projects. The valley is being developed to create an integrated value chain from hydrogen production and storage for distribution and consumption in real-life conditions. Industry and research partners are working together to promote the Austrian hydrogen industry. The Valley includes the provinces of Styria, Upper Austria and Carinthia, and has planned investment of EUR 578 million by 2030. It aims to produce more than 10,000 tons of green hydrogen annually for the industrial, energy and mobility sectors.
  • Production: The Hydrogen Import Alliance Austria (HIAA) consists of 8 companies, which are mostly offtakers. One Austrian company is investing in a 140 MW green hydrogen plant. Production is expected to commence in 2027, providing up to 23,000 tons of green hydrogen per year. This would make it one of the largest electrolysis facilities of its kind in Europe. 
  • Transport and storage: 
    • Five hydrogen supply corridors are being developed under the EU’s REPowerEU plan. One of them, the SoutH2 Corridor, will connect hydrogen demand centers in Austria, Germany, and Italy with supply from North Africa. Endorsed in 2024 by Austria, Germany, and Italy, the corridor will run through lower and upper Austria to the Austrian–German border.
    • The EU Alternative Fuels Infrastructure Regulation (AFIR, Regulation 2023/1804) supports the rollout of alternative fuel infrastructure across the Trans-European Transport Network (TEN-T). Austria is implementing the regulation through a national strategy adapted to its geographic and market conditions.
    • Austria has also demonstrated advanced hydrogen storage solutions. The Underground Sun Storage 2030 project proved that 100% green hydrogen can be stored in underground natural gas facilities. In addition, the MPREIS Hydrogen project (2016–2025) successfully showcased a regional green hydrogen economy, including production, storage, and logistics, as part of the EU-funded Demo4Grid project.
  • Application: In partnership with two collaborators, an Austrian company is developing Hy4Smelt, an industrial-scale demonstration plant. With a total investment of EUR 170 million, including EUR 71.8 million in public funding, it is Austria’s largest climate action research project. The project combines hydrogen-based direct reduction with electric smelting technology and is expected to conclude in 2030.

Contact us

For more information on Hydrogen in the Austrian market, please contact
Susanne Knobloch (susanne.knobloch@international.gc.ca).

Additional Information

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