Brussels – The European Commission published the final terms and onditions for its second auction for the production of renewable hydrogen, via the Innovation Fund. This auction, which is a key pillar of the European Hydrogen Bank (EHB), provides financial support to producers of hydrogen categorised as Renewable Fuel of Non-Biological Origin (RFNBO).
The auction will open on 3 December 2024 and will award up to €1.2 billion support to renewable hydrogen producers located in the European Economic Area (EEA). Building upon the success of last year’s pilot auction (IF23 Auction), the second auction will further contribute to the creation of a European market for renewable hydrogen by de-risking investments with public support.
The successful bidders under the IF24 Auction will receive a fixed premium in €/kg of renewable hydrogen produced, over a maximum of ten years of operation. The Innovation Fund support will bridge the gap between production costs and the price that off-takers’ are ready to pay for renewable hydrogen .
The Terms and Conditions for the second auction include new resilience requirements, building on the lessons of the pilot auction. Projects will be evaluated on a new criterion: “Achieving security of supply of essential goods and contribution to Europe’s industrial leadership and competitiveness”. The Commission will also ensure that support is provided to safe production processes in Europe through appropriate safety and cyber-security requirements.
