The funding will be directed to Austrian energy company Verbund and compatriot biofuels producer AustroCel Hallein, who plan to combine green hydrogen produced by the plant with captured biogenic carbon dioxide.

AustroCel’s Hallein biorefinery in Salzburg produces biomaterials via wood from the local area.

Among the byproducts of AustroCel’s processes is biogenic CO2, which would be captured and combined with green hydrogen produced by the new electrolyser to generate e-methanol.

The companies have not revealed specific offtakers, but a government statement said the e-methanol would help “industry and transportation” reduce CO2 emissions.

The Austrian Ministry for Economic Affairs, Energy and Tourism, which announced the funding, says the electrolysis plant is projected to increase domestic hydrogen production by around 60% by 2030.

Verbund is an Austrian national power company which produces the majority of its power using renewable sources, particularly hydropower.

The company was previously involved in two green hydrogen projects in Austria and Germany, which were cancelled amidst economic headwinds in September 2025.

In October 2025, Austria awarded four national hydrogen projects a share of €274.8m ($319m) under a broader strategy to invest in domestic hydrogen production and imports.

The EU’s Renewable Energy Directive III has implemented a 1% 2030 target for green hydrogen-based synthetic fuels to be used in the transport sector, which could increase to 35% by 2050.