The European Commission’s President Ursula von der Leyen has confirmed the second European Hydrogen Bank (EHB) auction will be held in December (2024).
It was revealed earlier this year that €1.2bn ($1.29bn) will be available in the second auction, representing a €400m ($430m) increase from the previous auction, which saw €720m ($775m) awarded to seven projects last April.
Read more:€1.2bn available for second EHB auction: €200m reserved for the maritime sector
Speaking during a video message at the Renewable Hydrogen Summit in Brussels, Belgium, today (November 7), von der Leyen stated that the new auction will have a new clause designed to encourage the use of equipment from European companies.
“Because they are the very innovators that pioneered renewable hydrogen tech in the first place,” she explained. “This secures Europe’s energy independence. And this creates good jobs here in Europe.”
The final terms and conditions of the second EHB auction, published in September, outlined limits on electrolyser component sourcing from China.
Bidders are required to prove that no more than 25% of electrolyser stacks can be sourced from China after the EU warned of significant risk to its security of supply due to increasing dependency on Chinese electrolyser imports.
Read more:EU unveils second EHB auction T&Cs with limits on Chinese electrolyser sourcing
von der Leyen added that Europe is “leading” investment in the hydrogen industry because it sets clear targets. “Investment in European hydrogen is set to grow by 140% in 2024, with Europe contributing nearly a third of global investments in electrolysers,” she claimed.
“Renewable hydrogen is here, it is growing, and this is only the beginning. So why is Europe leading? We set clear targets.”
She did admit however that it had been a challenging year for the European hydrogen industry, adding that “there’s a lot of work ahead of us.”
“First, we need to accelerate the creation of clean lead markets,” she said. “We are working closely with Member States and industry off-takers – from steel and chemical producers to transport and energy storage providers – to identify their priorities.
“This will be a key part of the Clean Industrial Deal that the new European Commission will present in its first 100 days. We want to prioritise the infrastructure needed to connect large-scale hydrogen projects with end users. We will tap into Europe’s vast renewables potential and bring it to our industries to help them decarbonise.
“This would significantly lower prices, not only for clean steel, cement, fuel and plastics, but also for fertilisers, glass, and a range of other hard-to-decarbonise sectors. The competitive benefits to European industry could be immense.”
The two EHB auctions have been established to meet these demands and scale up hydrogen production, according to von der Leyen.
“Last year, we created the European Hydrogen Bank – a first-of-its-kind initiative. The Bank offers a fixed premium for every kilogram of renewable hydrogen produced over the next decade. The results are already promising.”
Over 132 bids were made in the first auction, with only seven selected – expected to produce up to 1.58 million tonnes of renewable hydrogen over the course of a decade from a combined 1.48GW of electrolysis.
The winning bids gained access to between €0.37 ($0.40) and €0.48 ($0.51) per kilogramme of renewable hydrogen produced, receiving total subsidies between €8m ($8.6m) and €245m ($263m), funded by revenues from the EU’s emissions trading scheme (ETS).
Read more:EU awards €720m in renewable hydrogen subsidies to seven projects: offering less than €0.5/kg
Media Guide
Don’t just stay at the forefront of the latest news and views in the hydrogen economy, position yourself at the forefront with H2 View. Reach the right target audience for your company through our range of promotional platforms.
Whether online, in print, or as part of our newsletters, H2 View has a range of advertising options to meet your objectives. Download H2 View’s 2024 media guide today!
