BAKU, Azerbaijan, November 23. Today, the European Commission initiated the inaugural auction through the European Hydrogen Bank to bolster the generation of renewable hydrogen in Europe, Trend reports.
As such, an initial 800 million euros from emissions trading revenues will be directed through the Innovation Fund. Producers of renewable hydrogen will thus have the opportunity to compete for assistance in the form of a fixed premium for each kilogram of hydrogen they produce.
Applicants will receive notification of the evaluation results as early as April 2024 and are expected to sign the Grant Agreements within nine months following the closure of the call.
The pilot auction serves as an opportunity for the Commission to gather dependable data regarding the EU's pipeline of renewable hydrogen projects, the degree of competition for such support, the production costs of renewable hydrogen, and its market price. Insights gained from the pilot initiative will guide future auctions that may be established for other decarbonization technologies and products. The Commission plans to initiate a second round of auctions in 2024.