The EU has approved a €111.7m ($117m) subsidy from the Greek Government to Motor Oil (Hellas) to install 50MW of electrolyser capacity for renewable hydrogen production.
After being given state-aid approval, the Greek oil company will produce hydrogen at its Corinth refinery in Agioi Theodori. Hellas will receive the aid in the form of a direct grant, provided through the Recovery and Resilience Facility (RRF) programme.
Construction of 30MW of electrolyser capacity has already begun at Corinth refinery – the largest industrial complex in Greece. Hellas previously revealed plans for an additional 20MW to scale up to 50MW at the facility.
Read more:Motor Oil orders €19.8m 30MW electrolyser plant for Greek refinery
H2 View understands that the produced hydrogen will be utilised in the mobility and industrial industries.
The subsidy was approved by the EU as it sees the project as essential for reducing emissions and supporting the REPowerEU plan while having minimal impact on competition.
The aid has been structured to be just enough to make the project viable, ensuring no excessive subsidies. If the initiative turns out to be more profitable than expected, a claw-back mechanism will recover surplus funds to prevent overcompensation.
The EU has already funded the 30MW phase through its Clean Hydrogen Partnership. Furthermore, the oil firm received €127m in 2023 to build carbon capture and storage (CCS) and e-methanol production at the refinery.
Overall, Hellas plans to produce 60,000 tonnes of low-carbon hydrogen and 25,000 tonnes of e-methanol in Corinth by 2029.
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