The article discusses the importance of low-carbon hydrogen in achieving net-zero emissions and sustainable development. It addresses the current challenge of the disparity between the cost of producing low carbon hydrogen and the willingness of consumers to pay for it. To bridge this gap and promote the industry's growth, the authors propose using auction mechanisms to allocate long-term agreements for low carbon hydrogen projects. The main objectives of these proposed auctions are twofold. Firstly, they aim to align the supply and demand of low carbon hydrogen over specified time horizons and geographical delivery points. Secondly, the auctions seek to efficiently distribute subsidies to support the development of the industry. A key innovation presented in the article is the introduction of a reference price system that is indexed to liquid natural gas prices, which is the primary product targeted for substitution by low carbon hydrogen. This reference price, combined with a double-sided auction approach, helps determine the premium and production cost, thereby reducing the need for large public policy funds while encouraging long-term agreements and mitigating price risks that could deter investment. Overall, the article advocates for the adoption of auction mechanisms as a strategic tool to support the low carbon hydrogen market effectively. By fostering a transparent and competitive process for allocating resources and incentivizing investment, these mechanisms can play a vital role in advancing the transition to a more sustainable energy ecosystem.