The European Union has launched its first green hydrogen auction with a maximum price of €4.50 ($4.91)/kg. The approved projects will receive subsidies for a decade, alongside revenue from hydrogen sales, and must start production within the next five years.
The European Commission has launched the first hydrogen auction supported by the European Hydrogen Bank.
Renewable hydrogen producers can apply for support in the form of a fixed premium per kilogram of hydrogen produced. This should close the gap between the production price and the price that consumers are currently willing to pay in a market where non-renewable hydrogen production is still cheaper.
Bidders have until Feb. 8, 2024, to submit their proposals through the EU tenders and financing portal. Bids must be based on a proposed price premium per kilogram of renewable hydrogen produced, up to a ceiling price of €4 .50/kg.
Bids up to this limit, and that also meet other qualification requirements, will be ranked from lowest to highest bid price and supported in that order, until the auction budget is exhausted.
The selected projects will receive the awarded subsidy in addition to the market revenue they generate from hydrogen sales, for a maximum of 10 years. Once the projects secure their subsidy agreements, they must begin producing renewable hydrogen within five years.
This post appeared first on PV Magazine.