The European Commission has awarded nearly 1 billion euros to 15 green hydrogen projects in the European Economic Area. This measure is part of the second auction organized by the European Hydrogen Bank, and aims to close the cost gap between green hydrogen and traditional fuels.
New investments to accelerate the energy transition
The initiatives are spread across Germany, Spain, Finland, Norway and the Netherlands, and are expected to produce a total of 2.2 million tons of renewable hydrogen. renewable hydrogen over the next decade. This production will help avoid the emission of more than 15 million tons of CO₂, according to European executive estimates.
Each project will receive a fixed premium ranging from €0.20 to €0.60 per kilogram of hydrogen produced, except in the case of the maritime sector, which has higher premiums of up to €1.88 per kilogram. This differentiation is due to the logistical cost and the technical difficulty of supplying clean fuels. clean fuels in port operations. in port operations.
Green hydrogen projects with economic backing
In addition to EU funds, Spain, Austria and Lithuania have committed up to EUR 836 million. 836 million through the “Auctions as a Service” platform. 836 million through the “Auctions as a Service” platform. This tool allows member states to co-finance projects that meet European criteria but do not have access to the EU budget due to financial limits.
Support for these projects seeks to replace the use of use of natural gas, coal and oilThe support for these projects aims to replace the use of natural gas, coal and oil in sectors that are difficult to decarbonize, such as heavy transport, the chemical industry and the production of ammonia and methanol. At the same time, the aim is to consolidate a European hydrogen value chain that encourages private investment and the creation of specialized jobs.
Certified production and next steps
Beneficiaries must close financing for their projects by 2027 and begin commercial production within five years. The fixed premium will be granted for up to a decade for certified renewable hydrogen.
The next auction, scheduled for the end of 2025, will have a budget of up to €1 billion, reaffirming Europe’s commitment to the growth of this key technology for the climate neutrality.
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Source: European Commission
Photo: Shutterstock
