Renewables

EU publishes terms for European Hydrogen Bank’s upcoming pilot auction 

EU publishes terms, conditions for upcoming EU Hydrogen Bank pilot auction 

Photo: iStock

Published

August 31, 2023

Country

Comments

0

Share

Published:

August 31, 2023

Country:

Comments:

0

Share

The European Commission has published the terms and conditions for its pilot auction worth EUR 800 million, aimed at supporting European renewable hydrogen production.

The auction, funded by the Innovation Fund under the umbrella of the European Hydrogen Bank, is intended to be opened on November 23, the European Commission said.

Following stakeholder consultations ongoing since March, the publication of the terms and conditions gives potential bidders advance information about the final economic design of the auction and helps them start preparing their bids.

According to the plan, the auction will award up to EUR 800 million to renewable hydrogen producers in the European Economic Area (EEA). The support will take the form of a fixed premium, expressed in euros per kilogram, for renewable hydrogen produced over ten years of operation, therefore targeting the gap between the production costs and the demand side’s willingness to pay.

If the level of participation in the pilot auction is high, it will be followed by annual auction rounds

The commission stressed that the new auction mechanism would expand the portfolio of support mechanisms that the Innovation Fund currently provides through grants, project development assistance, and other blended financial instruments.

“If the level of participation in the pilot auction is high, it will be followed by annual auction rounds and could be expanded to clean products beyond renewable hydrogen. This awarding mechanism is expected to enable a faster rollout of innovative technologies needed for the green transition, especially in hard-to-abate sectors,” the European Union’s executive body said.

The auction is designed to achieve four objectives.

One is to reduce the cost gap between renewable and fossil hydrogen in the EU as effectively and efficiently as possible by allocating public support. Another motive is to allow for price discovery and renewable hydrogen market formation.

The third goal is to derisk European hydrogen projects, connect domestic renewable hydrogen supply and demand, bring capital costs down, and leverage private capital.

Finally, short, lean, and transparent procedures should reduce administrative burdens and costs, according to the commission.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

alcazar energy daniel calderon western balkans belgrade energy forum 2024

Alcazar eyes new acquisitions in Western Balkans, eyes 1 GW of renewables

30 May 2024 - Alcazar Energy is developing wind farm projects with a combined capacity of almost 500 MW in the Western Balkans

Fortis Group expand presence Balkans taking over two biogas power plants Serbia Velimir Gavrilovic Belgrade Energy Forum

Fortis Group expands presence in Balkans by taking over two biogas power plants in Serbia

29 May 2024 - Fortis Group is completing the purchase of two biogas power plants in Pančevo, Serbia, COO Velimir Gavrilović announced at Belgrade Energy Forum

elixir matijas predojevic decarbonization bef 2024

Elixir’s EUR 300 million investment plan includes wind, solar, batteries

29 May 2024 - New investments will help push forward the decarbonization process in Elixir Group, started several years ago, Matthias Predojević said

NGEN s Bernard no smart grid without smart users

NGEN’s Bernard: There is no smart grid without smart users

29 May 2024 - The energy sector needs smart grids, and a smart grid does not exist without smart users, CEO of NGEN Group Roman Bernard said at BEF 2024