The European Commission recently announced the terms and conditions (T) for the European renewable hydrogen production pilot auction. This is an important step for the European Union to expand renewable hydrogen production. The auction, funded by the Innovation Fund of the European Union Hydrogen Bank (EU Hydrogen Bank), is scheduled to open on November 23, 2023. Since March 2023, stakeholders have been in consultation, and the T document released today provides potential bidders with advance information on the final economic design of the auction and helps them start preparing bids.

This auction will provide up to 800 million euros in rewards to renewable hydrogen producers in the European Economic Area (EEA). This support will take the form of a fixed premium, with subsidies paid for each kilogram of renewable hydrogen produced over a ten-year operating period to bridge the gap between production costs and demand payment willingness.