The European Commission has published the final Terms and Conditions for its second EUR 1.2 billion renewable hydrogen auction, the IF24 Auction, as part of the European Hydrogen Bank, which provides financial support to Renewable Fuel of Non-Biological Origin producers.
Based on the large oversubscription of the 2023 pilot auction, the European Commission will open in 2024 a second auction to support RFNBO hydrogen producers located in the EEA with a budget of EUR 1.2 billion. IF support will again take the form of a fixed premium payment upon verified and certified production for a maximum period of 10 years.
This support is still needed for the sector, as most projects would not be carried out without the proposed support from the Innovation Fund, given the gap between their costs of producing RFNBO hydrogen and the market price. The support will be allocated through an open competitive bidding procedure that will ensure a proportionate remuneration of the projects funding gap.4 The ranking of proposals will directly reflect the environmental benefits the scheme aims to achieve, as displacing fossil fuels and products made using fossil-based hydrogen with the use of the RFNBO hydrogen produced under the instrument will directly reduce GHG emissions.
This document presents the Final Terms and Conditions on which the design of the second Innovation Fund Auction for RFNBO Hydrogen (IF24 Auction) will be based3. It is intended to help potential applicants preparing their submission already before the publication of the call for proposals by the end of 2024. This document takes into account feedback received through written public consultation and a stakeholder event held in June 2024.
To ease orientation, the design elements are presented in five categories:
1. general auction design elements (2.1)
2. qualification requirements (2.2 together with section III on mandatory documents)
3. auction procedure (2.3)
4. rights and obligations (2.4)
5. auction framework conditions (2.5)
6. rules on combination of public support (Section IV)
Describe more in document https://shorturl.at/jJkx8
