The EU has awarded nearly €720m to seven renewable hydrogen projects with a combined electrolysis capacity of 1.5GW in the European Hydrogen Bank’s first subsidy auction.
In November 2023, the European Commission launched the pilot auction under the European Hydrogen Bank to support the production of renewable hydrogen in Europe.
The European Hydrogen Bank aims to support the scale-up of cleaner fuels that will help contribute to the decarbonisation of European industry, including sectors such as steel, chemicals, maritime transport and fertilisers.
Funding for the subsidy auction comes from the Innovation Fund, a funding programme from the EU Emissions Trading System for the demonstration of innovative low-carbon technologies.
In February 2024, the commission revealed that the pilot auction attracted 132 bids from projects across 17 European countries.
Following the bidding process, the commission has announced it is awarding nearly €720m to seven renewable hydrogen projects located in four European countries. The subsidy the seven projects will receive ranges from €8m to €245m.
These projects include the Lahti Power-to-Gas plant in Finland, El Alamillo H2 in Spain, Catalina in Spain, MadoquaPower2x in Portugal, Grey2Green-II in Portugal, Skiga in Norway and the HYSENCIA in Spain.
Together, the winning projects plan to produce 1.58 million tonnes of renewable hydrogen over 10 years, avoiding more than 10 million tonnes of CO2 emissions.
In addition, the commission has approved a €350m German scheme to support the production of renewable hydrogen in Germany through the European Hydrogen Bank’s ‘Auctions-as-a-Service’ scheme.
The seven selected projects will now prepare their grant agreements, which are expected to be finalised by November 2024. They will then have five years to start producing renewable hydrogen.
The commission plans to launch a second European Hydrogen Bank auction by the end of this year.
Hydrogen projects in other countries across the world are also ramping up. Last week, Green Energy Park announced it had secured $30m Series-A funding in order to build a large-scale 10.8GW renewable hydrogen production plant in Brazil.
In January 2024, the ‘UK’s largest’ hydrogen hub located at the Stanlow Manufacturing Complex in Ellesmere Port received the green light from local authority Chester West and Chester Council.