RAG Austria AG (energy storage company) and international technology group ANDRITZ have held a groundbreaking ceremony marking the official start of construction on what will be Austria's largest green hydrogen production facility, a 12.5 megawatt plant designed to convert surplus solar energy into storable hydrogen for industrial and seasonal energy use.

A Flagship Project for Austrian Energy Storage

The facility, which ANDRITZ will deliver on a full engineering, procurement, and construction basis, is scheduled to begin operations by the end of 2026. Once commissioned, it will hold the distinction of being the largest green hydrogen plant in Austria, a milestone that both companies say signals a new chapter in the country's energy transition.

The plant is projected to produce approximately 17 million cubic meters of green hydrogen annually, equivalent to more than 1,500 tons. Solar power will serve as the primary renewable energy source driving the production process.

RAG Austria, described as a leading energy storage company, is central to the project's rationale. The company intends to use the green hydrogen facility to create large-scale seasonal energy storage, addressing one of the fundamental mismatches in renewable energy systems: the gap between when energy is generated and when it is most needed.

Solving the Seasonal Energy Gap

Austria, like much of Europe, generates significant solar energy during summer months but faces elevated energy demand during winter. The new plant is designed to bridge that gap by capturing surplus summer solar power and converting it into green hydrogen that can then be used for electricity and heat production when demand peaks in colder months.

According to the companies, the project directly addresses one of the central challenges of the energy transition, namely the need to store renewable energy when it is abundant so that it remains available during periods of peak demand.

The facility will also supply green hydrogen to meet industrial needs, providing what the companies describe as a continuous and reliable source of domestically produced hydrogen.

Markus Mitteregger, CEO of RAG Austria, emphasized the urgency of building domestic hydrogen production capacity within Europe. "In light of rising demand of green hydrogen in industry as well as in heating and power generation, particularly in winter, it is essential that Europe now begins producing its own hydrogen and consistently leverages available surplus electricity resources," he said. "Around half of future demand will need to be met within Europe, making it imperative to act now."

ANDRITZ's Full EPC Responsibility

ANDRITZ is assuming comprehensive responsibility for the project's execution and commissioning under an EPC contract structure. The company's scope of supply extends beyond the core hydrogen production plant to include systems for hydrogen purification and compression, covering the full chain of processes required to take surplus renewable electricity and convert it into usable, high-quality green hydrogen.

The groundbreaking ceremony was attended by senior representatives from both organizations, including Joachim Schönbeck, CEO of ANDRITZ AG, Dietmar Heinisser, Executive Board Member for Environment and Energy at ANDRITZ AG, Sami Pelkonen, Executive Vice President for Green Hydrogen at ANDRITZ AG, Markus Mitteregger and Robert Dick, CFO of RAG Austria AG, as well as Stephan Bauer from RAG Austria's Green Gas Technologies division.

For ANDRITZ, the project reinforces its stated strategic focus on technologies that support the green transition. The company, which was founded in 1852 and is headquartered in Austria, employs approximately 30,000 people across 280 locations in more than 80 countries.

Its Environment and Energy division offers a range of technologies that include green hydrogen production, carbon capture, emission reduction, and renewable fuels alongside other industrial process solutions.

Broader Context for European Hydrogen Development

The project arrives against a backdrop of growing policy and commercial pressure to scale up green hydrogen production within Europe. Mitteregger's comments at the groundbreaking pointed to projections suggesting that roughly half of future green hydrogen demand in Europe will need to be satisfied by European production, a target that requires significant investment in new facilities now.

By producing hydrogen from solar power rather than fossil fuels, the RAG Austria plant avoids the carbon emissions associated with conventional hydrogen production methods.

The energy stored as hydrogen can later be converted back into electricity or heat, giving grid operators and energy companies additional flexibility to manage supply and demand across seasons without relying on imported fuels or carbon-intensive backup generation.

ANDRITZ has positioned its Power-to-X capabilities, which include green hydrogen production, as a key element of its portfolio under the Environment and Energy business area.

The company describes its approach as providing holistic and integrated solutions for green hydrogen production, and the RAG Austria contract represents a significant demonstration project for that offering on an EPC basis within its home country.

Construction is now underway, with both companies targeting operational startup before the close of 2026.

Austria's Hydrogen Economy Is Moving Fast. Is Your Pipeline Keeping Up?

Across Austria, hydrogen infrastructure is scaling at a pace that leaves little room for guesswork. From electrolyser gigafactories to cross-border pipeline corridors, the project landscape is shifting week by week, and the organisations that act on accurate, timely intelligence are the ones shaping what comes next.

The challenge for developers, investors, and technology suppliers is not a lack of ambition in the hydrogen sector; it is a lack of visibility. Knowing which projects are moving from planning into procurement, and which tenders are live right now, is the difference between winning work and reading about it after the fact.

The Global Project Tracking (GPT) platform by Blackridge Research brings the full spectrum of Austrian hydrogen project activity into a single, continuously updated intelligence resource, covering every stage of the project lifecycle across the region.

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If your business needs to stay ahead of hydrogen investment flows and procurement opportunities across Austria. Contact Blackridge Research today and Book a Free Demo of the GPT platform.