The first auction under the European Hydrogen Bank fielded an initial €800m of emissions trading revenues. In the auction, producers of renewable hydrogen can bid for support in the form of a fixed premium per kilogramme of hydrogen produced. The premium is intended to bridge the gap between the price of production and the price consumers are currently willing to pay, in a market where non-renewable hydrogen is still cheaper to produce.

The Commission is also offering a “auctions-as-a-service” mechanism under the Hydrogen Bank. This will enable Member States to finance projects which have bid in the auction, but not been selected for Innovation Fund support due to budget limitations. This allows them to award national funding to additional projects on their territory, without the need to run a separate auction at national level, reducing the administrative burden and cost for all parties.

The European Hydrogen Bank was announced by President von der Leyen in her State of the European Union address in 2022 to support the EU's domestic hydrogen production and imports from international partners of renewable hydrogen. It aims to unlock private investments in the EU and in third countries by addressing the initial investment challenges and needs, closing the investment gap and connecting future renewable hydrogen supply to consumers.

Bidders have until 8 February 2024 to apply via the EU Funding and Tenders Portal.

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