Today is Thursday, 16 May 2024.
The results of the first competitive bidding process under the European Hydrogen Bank was disclosed a few days ago.
Out of a total of 132 bids received from 17 European countries, requesting over 15 times the available €800 million budget, 7 projects were selected: 3 from Spain, 2 from Portugal, 1 from Norway and 1 from Finland.
Madoqua Renewables, one of our keen readers at LinkedIn and one of the winners with the project MadoquaPower2X located in Sines, Portugal - Congratulations ! - posted an infographic showing the origin of all the bids received by the European Hydrogen Bank. Give a look.
Selected projects will have to start producing renewable hydrogen within a maximum of 5 years after signing the grant agreement, by November 2024 at the latest.
The winning bidders will produce renewable hydrogen in Europe and will receive a subsidy to bridge the price difference between their production costs and the market price for hydrogen, which is currently driven by non-renewable producers. The subsidy the 7 projects will receive ranges from €8 million to €245 million.
The selection process consisted on an initial assessment of eligibility, then a ranking according to their bid price, followed by an evaluation by the European Climate, Infrastructure and Environment Executive Agency. The bids submitted ranged from €0.37 to €4.5 per kilogram of renewable hydrogen produced. The winning bids were between €0.37 and €0.48.
Together, the winning bidders plan to produce 1.58 million tonnes of renewable hydrogen over ten years, avoiding more than 10 million tonnes of CO2 emissions.
The funds for this auction come from the revenues of the EU Emissions Trading System.
The European Hydrogen Bank is therefore contributing to the scale-up of cleaner fuels which will contribute to the decarbonisation of European industry. The renewable hydrogen they produce will be used in sectors such as steel, chemicals, maritime transport and fertilisers.
Click at the image below for much more information, including:
Hydrogen Bank pilot auction results and FAQ
Press release: Commission launches first European Hydrogen Bank auction with €800 million of subsidies for renewable hydrogen production
Joint EU-Germany statement: Germany's participation in the European Hydrogen Bank “Auctions-as-a-Service” scheme
Press release: State aid clearance of the German Auctions-as-a-Service contribution
News: European Hydrogen Bank pilot auction - 132 bids received from 17 European countries
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