European Hydrogen Bank pilot auction results spark renewable hydrogen competitiveness

On Tuesday, 30 April, the results of the European Hydrogen Bank’s first auction were announced. Seven projects across the EU will receive a total of €720 million, with a plan to produce 1.58 million tonnes (Mt) of renewable hydrogen over ten years, avoiding more than 10Mt of CO2 emissions.

Winning bidders will secure funds per kilogram of hydrogen produced (Kg/H2), sourced from the EU Emissions Trading System (Innovation Fund), bridging the price gap between current production costs and the price that hydrogen offtakers are ready to pay. The premium requested by the awarded project promoters ranged between €0.37 and €0.48 per Kg/H2 – well below the €4.5 ceiling price – for projects located in Spain (3), Portugal (2), Norway (1) and Finland (1).