First Hydrogen Bank auction will be launched in November

Inspenet, October 15, 2023.

The president of the European Commission, Úrsula von der Leyen, inaugurated the “Clean Transition Dialogue on Hydrogen” and announced that next month the first auction of the Hydrogen Bank will be held, backed by European financing of 800 million euros .

In addition, he highlighted that its regulation in the EU is at an advanced stage, also mentioning the possibility of following the European Union’s collective gas purchasing model, which would be voluntary.

Auction conditions

At the end of August, the European Commission published the terms and conditions of its pilot auction focused on the production of renewable hydrogen in Europe.

Interested parties must be producers of renewable hydrogen in the European Economic Area (EEA) area . The support will take the form of a constant subsidy in euros per kilogram of renewable hydrogen, with a price limit of €4.5/kg, for a period of ten years. This will focus on the gap between production costs and the value that buyers are willing to pay.

This auction system will reward the most innovative and competitive companies that produce hydrogen at the lowest cost ,” said von der Leyen.

It was explained that the dynamic involves providing financing to cover the difference between the cost of production and the price that the market is currently willing to pay.

International market

Von der Leyen also stated that the European Union is working on creating an international market for clean hydrogen.

“We have already signed partnerships with countries ranging from Egypt, Kenya and Namibia to Latin American countries. They have immense potential. Wind and solar or geothermal resources in abundance. They could produce clean energy, transform it into clean hydrogen and then send it to the world,” emphasized the head of the European Commission.

And, along these lines, he stressed: “ Europe wants to be a world leader in hydrogen, not only as a pioneer, but as a partner .”

For this purpose, the leader highlighted three fundamental elements of the regional strategy towards the market: establishing transparent regulations to guarantee stability; increase and streamline government investments; and establish international agreements to forge a global hydrogen market.

In addition, the leader of the European Commission suggested to industry leaders the feasibility of implementing in their sector an approach similar to the collective gas procurement mechanism that the European Union has implemented to unify demand, with participation being voluntary in nature. .

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