European Hydrogen Bank Auction Receives Bids for Eight Maritime Projects
The European Hydrogen Bank’s second auction for the production of renewable hydrogen has attracted 61 bids from projects in 11 countries with the European Economic Area (EEA). Eight of the bids were submitted under the dedicated maritime topic by hydrogen producers with off-takers in the maritime sector.
The total grant support requested is more than €4.8 billion ($5.2 billion), four times the available budget of €1.2 billion provided by the Innovation Fund. All bids taken together account for a total electrolyzer capacity of around 6.3 Gigawatts (GWe). Over 10 years, these projects would produce more than 7.3 million tonnes of renewable hydrogen. On a yearly basis, this would cover 7% of the EU’s REPowerEU ambition for domestic renewable hydrogen production in 2030.
Producers of renewable hydrogen, as defined in the Renewable Energy Directive and its Delegated Acts, have submitted bids for support in the form of a fixed premium per kilogram of renewable hydrogen produced over a period of up to 10 years. The premium, for which project promoters bid in the auction, covers the gap between the cost of production and the price buyers are currently willing to pay for renewable hydrogen.
The European Climate, Infrastructure and Environment Executive Agency (CINEA) is now evaluating submitted bids. CINEA plans to announce successful applicants by the end of May 2025. The Grant Agreements are expected to be signed by November 2025 at the latest.
The selected projects will have to reach financial close within 2.5 years and start producing renewable hydrogen within five years of signing the grant agreement. They will receive the awarded fixed premium subsidy for up to 10 years upon certified and verified renewable hydrogen production.
With an estimated revenue of €40 billion from the EU Emissions Trading System (EU ETS) between 2020 and 2030, the Innovation Fund aims to create financial incentives for companies and public authorities to invest in cutting-edge net-zero technologies and support Europe's transition to climate neutrality.