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Kelag opens Carinthia’s first hydrogen production facility for local transport

With a capacity of up to three megawatts, the plant will produce zero-emission hydrogen from May 2026.
Kelag hydrogen plant at the Kärntner Restmüllverwertungs GmbH (KRV) site in Arnoldstein (c) Kelag
Kelag hydrogen plant at the Kärntner Restmüllverwertungs GmbH (KRV) site in Arnoldstein (c) Kelag

On 11 April, Kelag officially opened an electrolysis plant for the production of green hydrogen on the premises of Kärntner Restmüllverwertungs GmbH (KRV) in Arnoldstein. KRV is a joint venture between Kelag and Kärntner Entsorgungsvermittlungs GmbH.

The hydrogen plant was built as part of the ‘DeCarB – Decarbonising Carinthian Bus Transport’ project, an initiative of the Province of Carinthia, and represents a milestone for climate-friendly regional transport in Villach. The DeCarB project is being implemented in collaboration with the Province of Carinthia, Postbus, Gutmann and the Carinthian Transport Association.

At the opening ceremony, Sebastian Schuschnig, Regional Minister for Energy and Transport, emphasised that Arnoldstein had gone from the ground-breaking ceremony to actual hydrogen production within a year. “With this electrolysis plant, a vision is becoming reality. Carinthia is now producing green hydrogen from regional, renewable energy – and will use it to power Austria’s first fleet of hydrogen buses in regional transport. Today’s opening is a significant step in the implementation of Carinthia’s hydrogen strategy and the flagship ‘DeCarB’ project, and demonstrates the potential of a sustainable hydrogen economy for the local region,” said Schuschnig. Carinthia is thus among the pioneers in the decarbonisation of public transport and is further establishing itself as a key hub for innovation in hydrogen technology: “I would like to express my sincere thanks to our project partners for their foresight and courage in realising this project together. Producing emission-free hydrogen from renewable energy for 36 buses is, as of today, no longer just an idea, but a reality. Through this project, we will also gain important insights into the hydrogen future of our region,” explained the Regional Minister.

Green fuel from the region for Villach

With a capacity of up to three megawatts, the plant will produce zero-emission hydrogen from May 2026. Of this total available capacity, approximately one megawatt will be used directly to supply the new fleet of hydrogen buses, whilst the remaining two megawatts will be available to ensure security of supply and for future applications in the mobility and industrial sectors. Kelag has invested around 16 million euros in the construction of the plant and the associated infrastructure.

“We are proud to produce around 140 tonnes of green hydrogen annually at full capacity. This enables us to supply 36 Postbus vehicles, each with a daily range of up to 500 kilometres, for regional transport in Villach. In the final phase of expansion, we will even be able to increase production to up to 400 tonnes per year. Particularly noteworthy is the time efficiency: a refuelling process takes just eight minutes,” explains Kelag board member Danny Güthlein. A hydrogen transport lorry from Arnoldstein to Villach can power 36 buses a day, and the electrolysis plant requires no more than a single bath’s worth of water per hour to do so. “This project impressively demonstrates what is possible when committed partners work together. The existing industrial site on the KRV premises in Arnoldstein is thus being utilised sustainably and benefits from the existing transport infrastructure,” says Güthlein.
Günther Albel, Managing Director of Kärntner Entsorgungsvermittlungs GmbH (KEV), the association of five Carinthian waste management associations: “I am delighted with the new hydrogen plant. As a logical and positive step forward, it complements the existing structure of the KRV perfectly. Thanks to innovative technologies, the site – which already produces electricity and district heating – will be successfully positioned for the long term. It sends a strong signal for our region.

Two plants ensure reliable operation

Kelag board member Reinhard Draxler highlights the measures taken to ensure security of supply and emphasises that the plant system is designed with full redundancy: “Two parallel generation lines ensure continuous production and guarantee a reliable supply. I would like to extend my special thanks to all our partners and contributors who have made this high level of technical quality possible. The plant also symbolises our openness to technology and the use of regional renewable energy sources.”

 Local economic benefits

 
Reinhard Antolitsch, Mayor of the market town of Arnoldstein, is delighted that the new Kelag hydrogen plant will also generate tangible economic benefits for the region: “With the commissioning of the Kelag hydrogen plant in our market town of Arnoldstein, another forward-looking initiative in the field of climate and environmental protection is being realised. We are always open to investments in a future fit for our grandchildren. In addition, value is also being generated for our municipality, particularly as the local company, Maurer, has taken on the transport of the hydrogen.”
 

European benchmark: 

 
Completion in record time
Kelag completed the plant at a pace that is exceptionally fast by European standards: there were just 13 months between the planning permission being granted in January 2025 and the first hydrogen production in February 2026.
 
[Source: PR Kelag, 11 April 2026]

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Veronika Pranger
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