2 May 2024
Results of the first European Hydrogen Bank auction are published
The Commission has awarded nearly €720 million to seven renewable hydrogen projects in Europe, selected through the first competitive bidding process under the European Hydrogen Bank. The 7 selected bidders will produce renewable hydrogen in 4 different countries in Europe (Spain, Portugal, Norway and Finland) and will receive a subsidy to bridge the price difference between their production costs and the market price for hydrogen, which is currently driven by non-renewable producers. The renewable hydrogen they produce will be used in sectors such as steel, chemicals, maritime transport and fertilisers.
The submitted bids range between €0.37 and €0.48 per kilogram of renewable hydrogen produced. The subsidy the 7 projects will receive ranges from €8 million to €245 million.
Also in Belgium and the Netherlands, projects were submitted, with a proposed production volume of 165 kt H2 (over 10 years) in Belgium and 504 kt H2 in the Netherlands. However, the winning bids come from countries that can offer the lowest cost hydrogen (LCOH[1] between 5.3 and 5.8 €/kg), compared to proposed cost prices of 10-11€/kg in BE/NL.
The press release and extra information on the bidding projects (LCOH per country, offtake prices, proposed electrolyser technology …) , can be found in the two links below.
The next auction of the EU Hydrogen Bank is expected in Q4, 2024. Significant rule changes are expected compared to the first auction, with a reduced ceiling price for subsidies per kg and reduction of the allowed time to operation of the projects (cfr third link below).
Draft terms & conditions 2024 auction