The Commission today launched the first auction under the European Hydrogen Bank to support the production of renewable hydrogen in Europe, with initial proceeds from the trading of emission rights of €800 million to be channeled through the Innovation Fund. Renewable hydrogen producers can bid for support in the form of a fixed premium per kilogram of hydrogen produced. The premium aims to bridge the gap between the production price and the price consumers are currently willing to pay, in a market where non-renewable hydrogen is still cheaper to produce.

The European Hydrogen Bank complements other policy tools to create a market for renewable hydrogen, stimulate investment in relevant production capacity and upgrade production. Renewable hydrogen can have a key role in Europe’s future energy mix, especially in the decarbonisation of heavy industry and some transport sectors, as it can replace fossil fuels. By enabling the faster development of innovative hydrogen technologies, the pilot auction will contribute to the REPowerEU plan’s goal of domestically producing 10 million tonnes of hydrogen by 2030.

The deadline for tenders is 8 February 2024 (18:00 Greek time) and interested parties can apply through the EU funding and tenders portal. Applicants will be informed of the evaluation results as early as April 2024 and will sign the grant agreements within nine months of the call closing date. The pilot auction will help the Commission to collect reliable data on the EU renewable hydrogen project pool, the level of competition for such support, the cost of renewable hydrogen production and its market price.

Korina Georgiou