Austrian energy company Verbund AG and local electric utility Burgenland Energie AG have received EU approval to set up a joint venture for the production of green hydrogen as the planned deal is not likely to affect competition.

The European Commission said on Wednesday that the transaction would not raise competition concerns because of the joint venture’s negligible activities in the European Economic Area.

The new entity will be focused on the generation and marketing of hydrogen from renewable energies. It will be 50% held by Verbund Green Hydrogen GmbH, a fully-owned subsidiary of Verbund. Burgenland Energie’s unit BE Energy GmbH will own the remaining 50%.