Austria, Lithuania, and Spain Boost Funding in European Hydrogen Bank Auction
Key Ideas
- Austria, Lithuania, and Spain plan to provide EUR 700 million for renewable hydrogen projects that did not secure EU support, boosting the total funding to EUR 2 billion in the European Hydrogen Bank auction.
- The mechanism of 'auction-as-a-service' allows these countries to select projects from the auction and fund them internally, avoiding the need for national auctions.
- The funding aims to accelerate hydrogen production, support climate goals, and reduce CO2 emissions, with projects ranging from 35 mWe to 500 mWe capacities across Europe.
- The European Commission has approved similar schemes previously, with Germany's EUR 350 million offer and the first auction awarding EUR 720 million to projects in Finland, Norway, Portugal, and Spain.
Austria, Lithuania, and Spain have announced plans to provide an estimated EUR 700 million in funding for renewable hydrogen production projects that did not secure European Union support under the upcoming European Hydrogen Bank auction. This commitment will increase the total funding available in the auction to EUR 2 billion. The European Commission had previously announced funding of up to EUR 1.2 billion from the EU Innovation Fund. The auction is set to open on December 3. Spain, Austria, and Lithuania will participate in the 'auctions-as-a-service' mechanism of the European Hydrogen Bank, enabling them to select projects that participated in the auction but did not receive EU funding. Spain plans to allocate between EUR 280 million and EUR 400 million for the auction, funded through its Recovery and Resilience Plan. Austria has pledged EUR 400 million from its national budget, while Lithuania has earmarked EUR 36 million from the EU Modernization Fund. These funding initiatives aim to support hydrogen production and help countries reach their national climate targets. The European Commission will need to approve the funding offers by the three countries. Previously, Germany's EUR 350 million offer was approved for projects not selected in the first European Hydrogen Bank auction, supporting the country's aim to have 10 GW of domestic electrolysis capacity by 2030. The first auction awarded EUR 720 million to projects across Finland, Norway, Portugal, and Spain, with winning projects expected to produce 1.58 million tonnes of renewable hydrogen over ten years, reducing over 10 million tonnes of CO2 emissions.
Topics
Production
Renewable Energy
Funding
Government Support
Climate Goals
Energy Production
CO2 Emissions
European Union
Auctions
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