In recent years, Europe has been making great strides towards a more sustainable, low-carbon economy.
One of the European Commission’s most recent initiatives was the European Hydrogen Bank auction, which made EUR 800 million available to support green hydrogen production.
The pilot auction exceeded expectations, demonstrating the strong interest in the sector in Europe.
Let’s find out more about it.
How did the European Hydrogen Bank auction turn out?
As many as 132 applications and projects were submitted from the 17 participating European countries requesting funding in excess of the initial EUR 800 million budget, a sign of a fast-growing industry confident in the potential of this clean energy source.
The numbers are encouraging: the candidate projects have an electrolysis capacity of 8.5 GW and could generate 8.8 million tonnes of hydrogen over the next 10 years, contributing significantly to the REPowerEU target for 2030.
But how does the allocation mechanism work?
It is based on a fixed-award system and grants were awarded to the projects that submitted the best offer in terms of cost per kilogram of hydrogen produced.
A system, therefore, that allowed the most efficient and competitive applications to be selected, guaranteeing the highest return on investment.
The European Commission is now evaluating the bids, ranking them according to the level of contribution required. The winners will be announced by April/May 2024 and the financing contracts will have to be signed by November 2024.
From then on, they will have five years to start hydrogen production and will then be eligible for the grant for 10 years.
Who is the European Hydrogen Bank
The European Hydrogen Bank is a financial institution dedicated exclusively to the promotion and financing of green hydrogen projects in Europe.
Founded in September 2022 with the aim of accelerating the energy transition towards renewable and zero-emission sources, the bank is a key element of the EU’s hydrogen strategy, which aims to make Europe a global leader in the production and use of this clean energy source.
But how does it work? Through a competitive auction system, companies and research organisations can submit projects for green hydrogen production and apply for funding. Projects are evaluated on a number of criteria, including energy efficiency, environmental impact and economic feasibility.
Simplifhy: the ideal partner for companies embracing hydrogen
At Simplifhy we are committed to driving the energy transition to a hydrogen future, supporting companies in achieving zero emission targets and developing cutting-edge technologies.
We are the first Italian supplier of hydrogen-based solutions and offer several services:
- Consulting for the design and implementation of ‘custom-made’ hydrogen systems. We build plants tailored to the specific needs of each customer, guaranteeing maximum efficiency and adaptability.
- Support for foreign companies. We help foreign companies to implement solutions for the production and use of hydrogen in Italy, providing complete and customised assistance.
- Specialisation in national and European calls for tenders. We are experts in researching and obtaining funding for innovative decarbonisation projects with hydrogen-based technologies.
Want to know more?
Read also Energy requalification projects for companies: Simplifhy’s support
Finally, at Simplifhy we have a complete range of products for the production of hydrogen by electrolysis for various application areas. In particular, we offer fully customisable solutions to suit the precise needs of your plant.
Contact us to discover all our solutions and to request a personalised consultation.
