The second auction for green hydrogen through the Innovation Fund (IF24 Auction) has been published
CINEA published the terms of the second EU auction (IF24 Auction) for renewable hydrogen production on 27 September. This auction is part of the Innovation Fund and offers financial benefits to organisations looking to invest in producing green hydrogen. The IF24 Auction opens on 3 December 2024 and has a € 1.2 billion budget available for organisations based in the EU (European Economic Area (EEA)).
How much grant can be applied for within the IF24 Auction?
Successful bidders will receive a fixed fee for each kg of renewable hydrogen produced. For up to 10 years, the allowance will be paid out. This grant reimburses the difference between production costs and selling costs, making it more interesting for producers to invest in producing renewable hydrogen.
New requirements and conditions
Unlike the first auction, the project’s resilience will now also be assessed, looking at good leadership and improving Europe’s competitiveness. Security is also important so that only projects that implement appropriate security and cybersecurity measures are eligible. In addition, the price ceiling has been revised, applicability must have a high maturity and € 200 million of the budget has been made available specifically for projects that deliver their hydrogen to customers in the maritime sector.
What is the Innovation Fund?
The Innovation Fund is a major European grant programme for companies investing in developing and demonstrating low-carbon technologies. Launched in 2020, the program will unlock around € 40 billion of budget for the years 2020-2030. Small-scale projects (CAPEX between € 2.5 million and € 20 million), medium-scale projects (€ 20 million to € 100 million), and large-scale projects (larger than € 100 million) are funded through the Innovation Fund. Over € 6.5 billion has now been awarded to more than 100 projects.
New since 2023: the EU auction for hydrogen
The auction for renewable hydrogen is a new component since 2023 within the Innovation Fund. Companies can bid for a fixed premium for producing renewable hydrogen. The instrument has proved popular and is going to contribute significantly to accelerating hydrogen production in Europe.
Advice on the IF24 Auction?
Is your organisation interested in investing in producing renewable hydrogen? And would you like advice from experienced specialists? Our specialists have successfully supported several projects in applying for Innovation Fund grants. You can contact us at info@hezelburcht.com or call us on 088 495 20 00 for more information.
