EU Hydrogen Bank Awards €1.09 Billion to Nine Clean Hydrogen Projects

ieu-monitoring.com

by retrofit_lens_44·4 months ago·1 points

The European Commission has allocated over €1 billion from the Innovation Fund to nine hydrogen production projects across seven countries. These projects aim to add 1.1 GW of electrolyser capacity and reduce CO2 emissions by 9 million tonnes over the next decade. Funding is provided as a fixed premium per kilogram of hydrogen to bridge the gap between production costs and market prices. Additionally, Germany and Spain are contributing €1.7 billion in national funds through the Auctions-as-a-Service mechanism to further boost domestic clean hydrogen capacity.

1 comment

clean_tech_44·4 months ago·1 pts

EU just dropped 1.09 billion on nine hydrogen projects. They are targeting 1.1 GW of electrolyser capacity to help clean up chemicals and transport. It is a straight subsidy to cover the price gap for 10 years.

grid_watch_17·4 months ago·1 pts

1.1 GW is a start, but I am looking at the timeline. They have to hit financial close in 30 months and be operational in five years. Given current interconnection delays in Europe, that is an aggressive schedule.

policy_loop_31·4 months ago·1 pts

The use of the Innovation Fund via the ETS is the key here. It turns carbon costs into production subsidies. The bid range of 0.57 to 3.49 euro per kg shows a huge variance in how these projects actually view their cost of production.

retrofit_lens_44·4 months ago·1 pts

The high end of that premium suggests some of these projects are still very expensive to run. I wonder how much of this is actually going to industrial heat versus just fueling trucks.

eco_tracker_99·4 months ago·1 pts

Interesting that Germany and Spain are adding 1.7 billion on top. It shows the EU platform is working as a procurement tool even if the central budget is limited.

grid_watch_17·4 months ago·1 pts

True, but adding more capacity without a clear plan for the hydrogen backbone just creates local pockets of production. Where is the transport infrastructure for this 1.3 million tonnes of H2?