The pilot auction under the European Hydrogen Bank, for renewable hydrogen production in Europe, has attracted 132 bids from projects located in 17 European countries, the European Climate, Infrastructure and Environment Executive Agency announced.
The total support requested far exceeds the currently available budget of €800 million, provided by the Innovation Fund.
All bids taken together provide for a total planned electrolyser capacity of 8.5 gigawatts (GWe). Over the span of ten years, this would lead to a total production volume of 8.8 million tonnes of renewable hydrogen. On a yearly basis, this would cover close to 10% of the EU’s REPowerEU ambition for domestic renewable hydrogen production in 2030.
Paloma Aba Garrote, Director of the European Climate, Infrastructure and Environment Executive Agency (CINEA), said:
“I am delighted with the strong interest from project promoters that resulted in a large number of bids for this first pilot Innovation Fund Auction for renewable Hydrogen. This shows that industry is keen to take on the challenge of spearheading the transition from fossil to clean fuels. The successful projects will expand CINEA’s portfolio of net-zero investments that shape the emerging markets for decarbonised products.”
Kurt Vandenberghe, Director-General for Climate Action, said:
“The applications are in and the enthusiastic market response to the pilot auction shows the European hydrogen industry is ready to scale up! Renewable hydrogen is an important solution in Europe’s endeavour to reach climate neutrality by 2050. The success of this pilot auction is the result of thorough engagement and consultation with relevant stakeholders and a solid regulatory framework which provides certainty to investors. We now have a scheme that provides efficient and targeted public support in full alignment with market needs.”
Producers of renewable hydrogen, as defined in the Renewable Energy Directive and its Delegated Acts,have made their bids to receive support in the form of a fixed premium per kilogram of renewable hydrogen produced. This premium bridges the gap between the cost of production and the price buyers are currently willing to pay for renewable hydrogen rather than fossil hydrogen. The Commission is also offering a new “Auctions-as-a-service” mechanism to enable Member States to benefit from the EU-level platform and award national funding to additional projects, in full respect of State aid rules. Germany is the first EU country to make use of the “Auctions-as-a-service” feature, putting up €350 million from its national budget for renewable hydrogen production projects located in Germany in case eligible bids for German projects cannot receive Innovation Fund support due to budget limitations.
Press release https://shorturl.at/ktJ06
