Nearly a billion euros for 15 projects. Commission publishes results of second EU hydrogen auction

The European Commission has published the list of projects that were successful in the second EU-wide hydrogen auction. A total of 15 projects will receive combined support of nearly a billion euros during their first 10 years of operation. The operational support awarded, which is paid on top of the sales price of the hydrogen delivered, amounts to EUR 0.2 to 1.9/kg. The Commission announced the results on its website.

According to the published information, the second EU-wide hydrogen auction attracted 61 bids from 11 countries. That is roughly half the number of bids in the first auction. Despite the drop in the total number of bids, however, the auction was roughly four times oversubscribed.

If all the submitted projects were built, they would add 6.3 GW of electrolyser capacity, which would produce more than 7.3 million tonnes of green hydrogen over 10 years. On an annual basis, this is around 7% of the EU's target for green hydrogen production in 2030.

Projects from the Iberian Peninsula dominated once again

Over 10 years of operation, the supported projects are expected to produce a total of 2.2 million tonnes of renewable hydrogen, helping to save 15 million tonnes of CO2. More than half of the projects (8) will be built in Spain, although the largest project, involving a 560 MW electrolyser, will be built in the Netherlands.

According to the published auction results, successful projects requested a fixed premium of between EUR 0.2 and 1.9 for every kilogram of renewable hydrogen produced. By comparison, only projects with a fixed premium below EUR 0.48/kg were successful in the first hydrogen auction.

"Auctions organised by the European Hydrogen Bank help develop renewable hydrogen and thereby replace natural gas, coal and oil in hard-to-decarbonise industrial sectors and transport. Increased renewable hydrogen production will reduce fossil fuel consumption on our continent, strengthen the EU's energy independence, and make a positive contribution to the security, employment and decarbonisation of European industry," the European Commission said.

The projects that were successful in the auction will now proceed towards signing their grant agreements. They must begin producing and delivering renewable hydrogen within five years of signing the agreements.

The European Commission also recalled that the next EU-wide hydrogen auction, the third so far, is likely to be launched later this year. Its budget is expected to be the same as that of the auction just held.

"The Commission will also soon launch the Hydrogen Mechanism, part of the European Hydrogen Bank. This online platform will connect buyers and sellers, allowing market participants to share information and find potential business partners," the Commission added.