🇫🇮 €224 million from the EU Innovation Fund for Vetyalfa

Oulu, Finland – May 7, 2026 – Through its 2025 Hydrogen Auction, the European Commission has selected nine flagship projects from its Innovation Fund to proceed to contract negotiations. Among them is the Cloudberry project by the Finnish company Vetyalfa Oy, set to receive approximately €224 million in funding. This is the largest amount of funding ever granted to Finland from the EU Innovation Fund.

The selected projects will receive a total of approximately €1.09 billion in EU funding. The final amount for Vetyalfa will be confirmed once the approved projects sign a grant agreement with the European Climate, Infrastructure and Environment Executive Agency (CINEA). The agreements are expected to be signed in the fourth quarter of 2026. After that, Vetyalfa must make an investment or construction decision within 2.5 years of signing and begin operations within five years.

“This is yet another piece of positive news that Finland needs right now. It’s excellent that a Finnish project is once again able to succeed in such a tight competition. The fact that we are holding on to Finland’s competitive edge and expertise in clean energy is best exemplified by news like this. We have all the prerequisites for clean growth and European leadership in the hydrogen economy and the opportunities offered by bio-based carbon dioxide,” says Minister of the Environment and Climate Sari Multala.

“Although large-scale hydrogen projects take time, the direction and outlook are very positive. Long-term commitment and patience are key to the development of hydrogen technology, but in the end, the work will pay off. Our expertise is clearly recognized in Europe,” the minister continues.

Vetyalfa’s Bid: The Largest and Most Cost-Effective

The projects, to be implemented in seven European Economic Area countries, are expected to generate nearly 1.1 gigawatts of electrolysis capacity and over 1.3 million tons of hydrogen during their first 10 years of operation. They would reduce greenhouse gas emissions by 9 million tons.

Vetyalfa Oy offers to produce nearly 509 kilotons of hydrogen over 10 years, with the lowest price in the entire tender. The company’s production capacity would be 500 MW. The green hydrogen produced would also achieve an emissions reduction of over 3.38 million tons over 10 years. Vetyalfa applied for approximately €224 million in funding.

The EU Innovation Fund supports projects that reduce greenhouse gas emissions, promote the adoption of renewable energy sources, improve energy efficiency, and enable emission reductions in energy-intensive industries. Funding is based on revenues from the EU Emissions Trading System (ETS).

The projects selected in this funding round will receive €1.094 billion in grants from the Innovation Fund. The grants will be disbursed starting in 2030, once the projects have begun. This auction received 58 bids from 11 countries, with demand for the grants exceeding the auction’s €1.3 billion budget sixfold.

Originally published on May 7, 2026 by Both2nia.