Initial terms and conditions of second Hydrogen Bank Auction have been published
The European Commission has made a significant stride in the realm of hydrogen energy with the publication of a first draft of the initial terms and conditions (T&C) for the upcoming second Hydrogen Auction. The next bidding round is expected to open later in 2024 and has a number of changes from the previous round.
The European Hydrogen Bank: what is it?
Alongside the standard Innovation Fund call, the European Commission initiated the EU Innovation Fund auction, known as IF23Auction. This auction presents an opportunity for (renewable) hydrogen producers to offer a fixed premium per kilogram of hydrogen generated. This premium serves to bridge the disparity between production costs and consumer pricing preferences. Through this mechanism, the European Hydrogen Bank is actively amplifying hydrogen production efforts across Europe.
Changes second auction
With a substantial total budget of €3 billion, of which €800 million has already been allocated in the first round of auctions, the initiative has attracted attention from 132 projects spanning 17 countries. For the second auction some changes have been published in the terms and conditions:
- The ceiling price is to be reduced from 4.5€/kg to 3.5€/kg;
- The realization time is shortened from 5 years to 3 years;
- A dedicated auction bucket for maritime offtake will be introduced, maritime projects compete against each other only.
You can find more changes and the expected timeline for the second Hydrogen Bank Auction in the factsheet below:
Support with your application
Our specialists are pleased to support you in writing and submitting a strong project proposal for your application. Contact us for more information on the upcoming auction by info@hezelburcht.com or call 088 495 20 00.
