The European Commission has launched the first auction under the European Hydrogen Bank, providing €800 million to support renewable hydrogen production in Europe. Producers can bid for a fixed premium per kilogram of hydrogen produced, helping bridge the gap between production costs and consumer prices. This initiative aims to stimulate investments in renewable hydrogen, benefiting heavy industry and transportation sectors. The pilot auction contributes to the goal of producing 10 million tonnes of hydrogen domestically by 2030. Projects will be selected based on the lowest bid price until the budget is exhausted. The Commission also offers an “Auctions-as-a-service” mechanism for Member States to finance projects not selected for Innovation Fund support. The deadline for applications is February 8, 2024, with evaluation results announced in April 2024. This pilot auction will provide valuable data for future auctions and the development of decarbonization technologies.
Resource: https://esgnews.com/eu-launches-e800-million-auction-to-fuel-renewable-hydrogen-production/