Announced a year ago in European Station of Union, September 2022, the Commission on August 30, 2023, published the Terms and Conditions (T&C) for its pilot auction dedicated to European renewable hydrogen production to boost the production of renewable hydrogen in the EU. The T&C gives potential bidders preliminary information about the economic design of the auction and to facilitate their bids.
The auction to be launched on November 23, 2023 , is funded by the Innovation Fund under the umbrella of the EU Hydrogen Bank. . Following stakeholder consultations ongoing since March 2023, today’s publication of the
The €800 million auction for renewable hydrogen producers in the European Economic Area (EEA) will cover a fixed premium in €/kg of renewable hydrogen produced over ten years of operation, to tackle the current high and volatile costs of hydrogen.
The auction is designed to achieve four objectives:
The new auction mechanism will supplement the current project development assistance, and other blended financial instruments.
Background
The Innovation Fund is financed by revenues from the auctioning of allowances from the EU Emissions Trading System (ETS), and as one of the largest of its kind in the world, is seen as one of the key tools of the Green Deal Industrial Plan.
In March 2023, the Commission presented a new plan to stimulate and support investments in renewable hydrogen production through the European Hydrogen Bank (EHB). This initiative aims to accelerate investment and bridge the investment gap for the EU to reach its ambitious REPowerEUtargets.
The EHB is organised around four pillars:
The CTC Network promotes the accelerated transfer of environmentally sound technologies for low carbon and climate resilient development at the request of developing countries.
