EU Commission Receives Overwhelming Response for European Hydrogen Bank's Second Auction
Key Ideas
- 61 bids have been submitted from 11 countries for the European Hydrogen Bank's second auction, surpassing expectations.
- A total of more than €4.8bn in grant support has been requested for a capacity to produce over 7.3 Mt of renewable hydrogen.
- The European Climate, Infrastructure and Environment Executive Agency will evaluate and rank the bids, with the results to be announced in May 2025.
- The initiative aims to boost domestic production and imports of renewable hydrogen to achieve the EU's target of 20 Mt of hydrogen in its energy mix by 2030.
The EU Commission has been inundated with 61 bids from projects across 11 countries for the European Hydrogen Bank's second auction aimed at producing green hydrogen. The total grant support requested has exceeded €4.8bn, a significant increase from the available budget of €1.2bn. These bids aim to create a total electrolyser capacity of about 6.3 GW, with the potential to produce more than 7.3 Mt of renewable hydrogen over a decade. Producers have bid for a fixed premium per kilogram of renewable hydrogen produced to bridge the cost-price gap. The bids will be assessed by the European Climate, Infrastructure, and Environment Executive Agency, with results expected in May 2025. The European Hydrogen Bank initiative seeks to advance the EU's goal of incorporating 20 Mt of hydrogen into its energy mix by 2030. The Commission plans to launch a third auction for hydrogen before the end of 2025, highlighting the increasing importance of green hydrogen in the EU's energy transition.