Nine electrolytic hydrogen projects representing 1.1GW of capacity have been selected for over €1bn of funding under the third European Hydrogen Bank auction.
The projects were awarded per kilogramme subsidies of between €0.44 ($0.52) and €3.49 ($4.11), with two Norwegian developments focused on supplying shipping securing the most lucrative incentives.
The funding from the EU Emissions Trading Scheme will last for the first 10 years of the projects’ operations, which could see over 1.3 million tonnes of hydrogen produced. See all projects below.
Grant agreements are expected to be signed with the European Climate, Infrastructure, and Environmental Executive Agency (CINEA) by Q4 2026.
Projects will need to reach final investment decision within two and a half years and enter into operation within five years of signing the grant agreement.
It was the first EHB auction to offer subsidies for electrolytic hydrogen projects not complying with the strict renewable fuels of non-biological origin (RFNBO) criteria around renewable electricity sourcing.
Two projects in Finland and Germany, representing 620MW of capacity, were selected under the Low-Carbon bucket.
While five RFNBO projects were selected in total, their capacities make up just 439MW, with subsidies ranging between €0.57 ($0.67) and €0.98 ($1.15) per kilogramme. Unlike previous EHB rounds, which rounds which primarily selected projects in Iberia and the Nordics, RFNBO developments in Greece, Spain, Denmark, and Austria were represented.
The two projects selected under the auction’s Maritime-Aviation bucket were two Norwegian projects looking to supply shipping operations, both with subsidies close to €3.50 ($4.12).
The industry will be watching the outcome of grant agreement negotiations closely. The previous two rounds have committed far lower funds than budgeted, with various projects dropping out of contract negotiations.
Lobby Group Hydrogen Europe previously called for the tight FID and operational timelines attached to the grants to be relaxed, after warning that it increased “risk perception.”
In addition to the EU-wide auction, Spain and Germany plan to hold their own national auctions amounting to over €1.7bn ($2bn), which could offer projects that failed to secure funds from the third EHB a chance to win subsidies.
RFNBO winners
Greece’s Hellenic Hydrogen, a joint venture (JV) between Motor Oil Hellas and Public Power Corporation, is implementing a 100MW green hydrogen plant. Through the bank, its first 25MW phase was awarded subsidies of €0.57/kg for over 38,000kt of green hydrogen.
German synthetic methane firm Turn2X secured €0.62/kg for 9MW of hydrogen production capacity at its planned project in Extremadura, Spain. The company is exploring co-location with biomethane company AGR Biogas for supplies of biogenic carbon dioxide.
MorGen Energy won €0.95/kg subsidies for a scaled down version of its Esbjerg project in Denmark which was originally due to be 1GW in capacity. Now the firm plans to move forward with a 300MW development to feed up to 445,000 tonnes of hydrogen into Denmark’s hydrogen pipeline.
Hy2gen’s 100MW Albatros project in Kassø, Denmark, was awarded €0.97/kg. It plans to produce 14,400 tonnes of hydrogen per year for injection into the planned Danish hydrogen network.
The hydrogen subsidiary of Austrian infrastructure firm Weiner Stadtwerke won €0.98/kg for its 5MW Hy4IND project.
Low Carbon winners
Vetyalfa, the e-fuel subsidiary of renewables firm Tuulialfa, won €0.44/kg for the largest project in the entire auction – it’s 500MW Cloudberry development in Vaaka, Finland, which is expected to produce over 500,000 kilotonnes of hydrogen over 10 years.
Copenhagen Infrastructure Partners’ Lotse e-fuel venture won €1.10/kg for a 120MW project in Germany.
Maritime winners
Gen2 Energy was awarded subsidies of €3.48/kg for its 12MW liquid green hydrogen Gen2-LH2 project in Norway.
GreenH grabbed the highest award of €3.49/kg for its 12.5MW RogalandH2 project in Norway. It is expected to produce 17,700 kilotonnes of hydrogen over the subsidy period.
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