The European Union recently announced the signing of grant agreements for the winners of the first EU-wide renewable hydrogen auction. Out of seven selected projects, six have finalized grant agreements, totaling EUR 694 million in support. The funding from the Innovation Fund aims to assist these projects in covering their production costs and making renewable hydrogen economically viable for industrial users. The projects, located in Spain, Portugal, Finland, and Norway, are set to produce 1.52 million tonnes of renewable hydrogen in the initial ten years of operation, leading to a reduction of more than 10 million tonnes of CO2 emissions. The Innovation Fund will provide a fixed premium payment per kilogram of certified renewable hydrogen produced, ensuring that payments are only made post-production commencement. The projects have a grace period of up to five years to start producing renewable hydrogen. The renewable hydrogen generated will cater to various sectors including maritime, heavy-duty transport, agriculture, and the production of e-methane and e-methanol, promoting sustainability across industries. Notably, one project opted to withdraw from the grant agreement process. Building on the success of this initial auction, the European Commission plans to launch a second renewable hydrogen auction by the end of 2024 with an expanded budget of EUR 1.2 billion. The Terms and Conditions for the upcoming auction, released on 27 September 2024, outline the key elements and requirements for participation in the auction, setting the stage for further advancements in European renewable hydrogen production.