European Hydrogen Bank pilot auction demand “far exceeds” €800m budget – EC

• The 132 bids received from 17 EEA countries was for a total 8.5GW of combined electrolyser capacity
• Oversubscription shows strength of European renewable-hydrogen growth
•  Further details are due between April-May, with grant agreements in place by end of November

LONDON (ICIS)–The European Commission said total funding applied for in the first European Hydrogen Bank pilot auction “far exceeds” the programme’s €800m budget on 19 February.

A second auction round is scheduled for the spring this year.

The auctions only support renewable hydrogen production assets that adhere to the definition of renewable fuels of non-biological origin (RFNBOs) within the Renewable Energy Directive approved by the European Parliament.

A total of 132 bids combined demand for 8.5GW of electrolyser capacity in the first auction.  This is equivalent to 8.8m tonnes of renewable hydrogen produced over the ten-year subsidy periods (880,000 tonnes/year), the Commission said.

The bid-for volumes come close to covering 9% of Europe’s 10m tonne/year renewable-hydrogen production goal set for the end of the decade.

Bids were received from 17 of 30 countries within the European Economic Area (EEA).

The Commission said that more details would follow in either April or May after an evaluation process, with the grant agreements signed by November this year at the latest.

RECEIVED BIDS, GERMANY BOOST

Each bid for capacity averages 64.4MW, at an annual average production rate of 6,667 tonnes/year for each bid. Given demand overshooting available funds, it is unlikely that all 132 bids will succeed.

Germany announced late 2023 that it would be the first member state to participate in the EU’s voluntary auctions-as-a-service scheme, however, while providing additional support.

The government made an additional €350m available for projects in Germany, in case eligible bids for projects in Germany are excluded from the Innovation Fund due to budget limitations.