New Delhi: The European Investment Bank (EIB) has approved a €450 million loan for the construction of Austria’s largest green hydrogen production facility, supporting a major renewable energy project that aims to reduce industrial emissions and strengthen Europe’s energy security.
The financing will support Austrian energy, fuels and chemicals company OMV in building a large-scale green hydrogen plant at Bruck an der Leitha in Lower Austria. The loan will cover nearly three-quarters of the project’s estimated €600 million cost. Construction is already underway, with commercial operations expected to begin by the end of 2027, Devidscourse reported.
The project is aimed at strengthening Europe’s clean energy industry, reducing industrial carbon emissions and improving long-term energy security.
EIB Vice-President Karl Nehammer said green hydrogen would play a central role in Europe’s transition to a competitive, climate-neutral and secure energy system. He said the investment would support renewable hydrogen production on an industrial scale while reducing dependence on fossil fuels and strengthening Europe’s clean technology sector.
The facility will feature a 140-megawatt electrolyser powered entirely by renewable electricity. Once operational, it is expected to produce up to 23,000 tonnes of renewable hydrogen annually, making it the largest green hydrogen plant in Austria and one of the five largest in Europe.
The hydrogen will be transported through a 22-km pipeline to OMV’s Schwechat refinery, where it will gradually replace hydrogen produced from fossil fuels for refining operations.
According to project estimates, the shift to renewable hydrogen will reduce the refinery’s direct carbon dioxide emissions by up to 150,000 tonnes a year, equivalent to around 10% of its current direct emissions.
The project is also expected to support the production of sustainable aviation fuel (SAF) and other lower-carbon products as demand for cleaner transport fuels grows across Europe.
The investment supports the EIB’s role as the European Union’s Climate Bank and aligns with key EU initiatives, including the European Green Deal, REPowerEU and the TechEU programme aimed at strengthening Europe’s clean technology capabilities.
OMV Chief Financial Officer Reinhard Florey said the financing reflects confidence in the company’s long-term transformation strategy. He said the project would strengthen Europe’s energy value chain, improve energy security and make a significant contribution to reducing emissions from industrial operations.
The facility is part of OMV’s Strategy 2030, under which the company is expanding renewable hydrogen and renewable fuels production as it works towards achieving net-zero emissions by 2050. Once completed, the Bruck an der Leitha plant is expected to become one of Europe’s flagship green hydrogen projects, demonstrating the role of renewable hydrogen in decarbonising heavy industry.
