The European Hydrogen Bank’s second auction for the production of renewable hydrogen has attracted 61 bids from projects in 11 countrieswith the European Economic Area (EEA) . Eight of the bids were submitted under the dedicated maritime topic by hydrogen producers with off-takers in the maritime sector.
The total grant support requested is more than €4.8 billion, four times the available budget of €1.2 billion provided by the Innovation Fund. All bids taken together account for a total electrolyser capacity of around 6.3 Gigawatts (GWe). Over ten years, these projects would produce more than 7.3 million tonnes of renewable hydrogen. On a yearly basis, this would cover 7% of the EU’s REPowerEU ambition for domestic renewable hydrogen production in 2030.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, said: “The amount of bids in this second auction under the European Hydrogen Bank again shows the attractiveness of the Innovation Fund as a tool for Europe’s industrial decarbonisation and competitiveness. This continued appetite from our industry reinforces the development of a European market for clean hydrogen. As a key driver of our goal to achieve climate neutrality by 2050, hydrogen plays a crucial role in cutting emissions from hard-to-abate sectors. It will strengthen Europe’s industrial leadership in emerging clean technologies, ensuring long-term economic resilience and global competitiveness.”
Producers of renewable hydrogen, as defined in the Renewable Energy Directive and its Delegated Acts, have submitted bids for support in the form of a fixed premium per kilogram of renewable hydrogen produced over a period of up to 10 years. The premium, for which project promoters bid in the auction, covers the gap between the cost of production and the price buyers are currently willing to pay for renewable hydrogen.
EU Member States can also benefit from an “Auctions-as-a-service” mechanism, whereby the results of the auction can attract further national funding for additional projects, in full respect of the EU State aid rules. Under the second auction of the European Hydrogen Bank , Spain, Lithuania, and Austria have participated in this scheme, as announced in November 2024, with the contribution of up to €836 million in national funds. The Commission invites other Member States to take advantage of this service.
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Press release https://tinyurl.com/3brnfx9s
