EU to hold second hydrogen auction in spring 2024

The European Commission will open a second round of auctions to support EU renewable hydrogen production in spring 2024, EU President Ursula von der Leyen announced on Monday.

The European Hydrogen Bank, created last October, will have a budget of 3 billion euros ($3.3 billion). The first pilot auction is scheduled to open on Thursday, offering an initial amount of €800 million to renewable hydrogen producers in the European Economic Area (EEA).

Earlier this year, the EC said it would offer auction winners a fixed premium of up to €4.5 per kilogram of renewable hydrogen over 10 years of operation. However, to be eligible, projects must begin operations within five years of signing the grant agreement, have at least 5 megawatts of newly installed electrolyser capacity, and meet other criteria.

Speaking at European Hydrogen Week in Brussels, von der Leyen said the EU would ease access to public funding by “creating a single window within the European Hydrogen Bank” and directly linking hydrogen producers and consumers. However, she did not specify how much would be sold at the second auction.

“In parallel, we are also working on the international direction of the European Hydrogen Bank,” she added. “This will ensure diversified imports of renewable hydrogen from reliable suppliers overseas.”

To develop a global market for clean hydrogen, the EU has signed hydrogen partnerships with several countries, including Egypt, Kenya, Namibia and Latin American countries. The EU is also building one of the world's largest hydrogen projects in Piaui, Brazil, as part of a €2 billion Global Gateway investment in Brazil's hydrogen value chain, von der Leyen announced.

The 10 gigawatt green energy park will supply green hydrogen and ammonia to the island of Krk in Croatia for transport to consumers in south-eastern Europe.

“All of this shows more than ever that Europe is not only a pioneer of clean hydrogen, but also a partner in creating a global hydrogen market,” she added. “Through this public investment, we are helping to attract and mobilize significant private capital.”