In a press release, Hydrogen Europe announces that the European Commission has released the anticipated Terms and Conditions (T&Cs) for the second auction of the European Hydrogen Bank. This auction will allocate an additional €1.2 billion to support the production of RFNBO* hydrogen.
Hydrogen Europe pays tribute to numerous aspects of the new auction structure. For instance, the fact that the Commission has set a €4 per kilogram price cap, a five-year timeline for project commissioning or a two-and-a-half-year deadline to reach final investment decision (FID). These terms were expected by the vast majority of Hydrogen Europe’s members.
The CEO of Hydrogen Europe, Jorgo Chatzimarkakis, commented: “The new terms set out for the second call of the Hydrogen Bank create a fertile environment for companies to invest in Europe. The introduction of resilience criteria marks a pivotal moment not only for the hydrogen sector but for the European Union as a whole. This bold step, aligned with the Net-Zero Industry Act and the recommendations of the Draghi report, underscores the importance of building a robust European supply chain. Equally important is the need to cut through red tape. Simplicity of implementation is an absolute must for the new mandate.” Prospective projects bidding in the next call will have to limit the sourcing of electrolyser stacks from China to a proportion inferior to 25% (in MWe) to fulfil this criterion.
A missed opportunity
However, Hydrogen Europe regrets the missed opportunity to expand cumulation flexibility. This would include projects already benefiting from funding, the introduction of sectoral baskets and the cap for maximum bid amounts, that might undermine participation. The association also points out that there is no indexation to inflation. Yet, doing so could prevent extra uncertainty in the event of price fluctuations.
This second auction will be launched by the beginning of December, shortly after the European Hydrogen Week.
*RFNBO: Renewable Fuels of Non Biological Origin
