European Hydrogen Bank is a financing instrument aimed at creating investment security and new business opportunities for the production of renewable hydrogen. The final terms and conditions of the European Hydrogen Bank auction call for 2024 are expected to be published in August-September this year. Dedicated Spinverse experts are here to support you if you would like to learn more about the business opportunities the Hydrogen Bank offers to the hydrogen sector.
What is the Hydrogen Bank?
Launched in 2022 by the European Commission, the European Hydrogen Bank is a financing instrument aimed at creating investment security and new business opportunities for renewable hydrogen production. The main goal of the Hydrogen Bank is to release private investments in hydrogen value chains by connecting renewable energy supply to EU demand and by addressing initial investment challenges. This initiative is designed to establish an initial market for renewable hydrogen, thereby boosting new growth opportunities and creating jobs.
What is it trying to achieve?
The primary goal of the Hydrogen Bank is to scale up the production of renewable hydrogen, a cleaner alternative to fossil fuels. By providing subsidies, the bank aims to support projects that can produce renewable hydrogen at competitive prices, thereby contributing to the decarbonization of European industries. The first EU-wide auction in 2023 awarded nearly 720M€ to seven renewable hydrogen projects, which together plan to produce 1.58 million tonnes of renewable hydrogen over ten years. This effort is expected to avoid more than 10 million tonnes of CO2 emissions, showcasing the significant environmental impact of this initiative.
Who can apply?
The Hydrogen Bank auction is open to projects with production located within the European Economic Area. Eligible projects must produce RFNBO (Renewable Fuels of Non-Biological Origin) hydrogen, as defined by the Renewable Energy Directive.
The ceiling price of bids for the 2024 call is suggested to be set at 3.5€ per kilogram of hydrogen produced. In 2024, the total grant amount available for the auction call is a substantial 1.2B€ billion, offering even more opportunities for innovative projects to secure funding. There are specific budget and grant amount limits for different categories, including a maximum grant amount limit for the maritime sector. Importantly, projects must enter into operation within 3 years of signing the grant agreement, and a completion guarantee is required to prevent speculative bidding.
Schedules and important dates
The final terms and conditions for the Hydrogen Bank auction call for 2024 will be released at the end of August or the beginning of September 2024. The call for bids is expected to open by the end of the year. This timeline provides ample opportunity for potential applicants to prepare their proposals and meet all eligibility and quality criteria.
How Spinverse can help
At Spinverse, we have an excellent track record in preparing successful project proposals. Our team of experts can help you navigate the Hydrogen Bank's stringent requirements. We have a proven track record of supporting our clients in securing funding for innovative projects, and we are well-equipped to assist you in this competitive bidding process. Mature projects with low electricity costs and larger production capacities will have a competitive edge, and we can help you position your project for success.
Get in touch with Spinverse
If you are interested in participating in the Hydrogen Bank auction or need more information, do not hesitate to reach out to our dedicated team at Spinverse:
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Miguel Lopes Director, Energy team miguel.lopes@spinverse.com |
Janne Kaukojärvi Manager, Business Development janne.kaukojarvi@spinverse.com |
Don't miss this opportunity to contribute to Europe's green transition and secure funding for your renewable hydrogen project. Let Spinverse guide you through the process and help turn your innovative ideas into impactful solutions.