The European Hydrogen Bank’s second auction for renewable hydrogen production has attracted 61 bids from projects in 11 countries within the European Economic Area (EEA), with eight bids submitted under the dedicated maritime topic by hydrogen producers with off-takers in the maritime sector, according to European Commission's release.
The total grant support requested exceeds €4.8 billion, four times the available €1.2 billion budget from the Innovation Fund, with all bids accounting for a total electrolyser capacity of around 6.3 Gigawatts (GWe). Over ten years, these projects would produce more than 7.3 million tonnes of renewable hydrogen, covering 7% of the EU’s REPowerEU ambition for domestic renewable hydrogen production in 2030 on a yearly basis.
Producers have bid for a fixed premium per kilogram of renewable hydrogen produced over up to 10 years to cover the gap between production costs and market prices. Spain, Lithuania, and Austria have contributed up to €836 million in national funds through the “Auctions-as-a-service” mechanism, and the Commission encourages other Member States to participate.
The European Climate, Infrastructure and Environment Executive Agency (CINEA) is evaluating bids, with results expected by the end of May 2025 and Grant Agreements to be signed by November 2025, requiring projects to reach financial close within 2.5 years and start production within five years.
The European Commission, based in Brussels, oversees EU policy and funding initiatives like the European Hydrogen Bank, aiming to drive climate neutrality by 2050 through programs such as the Innovation Fund.
European Climate, Infrastructure and Environment Executive Agency (CINEA), established in 2021, manages EU funding programs including the Innovation Fund, focusing on climate and clean energy projects across the EEA.
The Innovation Fund, funded by the EU Emissions Trading System with an estimated €40 billion budget through 2030, supports innovative net-zero technologies, including renewable hydrogen production.