1st hydrogen production subsidy Auction

Between November 23, 2023, and February 8, 2024, the 1st subsidy auction for hydrogen bank production will take place under the framework of the Innovation Fund.

The Innovation Fund is managed by the European Climate, Infrastructure, and Environment Executive Agency and is the largest financial mechanism for demonstrating low-carbon and highly competitive technologies. One of its goals is to significantly reduce Europe's ecological footprint while simultaneously addressing the goals outlined in European climate legislation and strategy.

The €800 million from the first auction represents only a portion of the €3 billion that European Commission President Ursula von der Leyen mentioned last year as the startup funds for the new hydrogen bank.

Beneficiaries: new hydrogen production projects with a minimum capacity of 5 MW and located within the European Economic Area that submit the most competitive bids, meaning the lowest support for renewable hydrogen production.

Form of grant: The support will be provided in the form of a fixed premium in euros per kilogram of renewable hydrogen produced over a 10-year operational period, aiming to bridge the gap between production costs and market demand. The maximum offer cannot exceed €4.5 per kilogram (bid price), and the incentive cannot exceed €266.7 million at most.

The maximum level of support will be determined by the following formula:

Hydrogen production must adhere to new production capacity, verification, and certification in accordance with the Renewable Energy Directive (2018/2001/EU), Delegated Acts C(2023) 1086, and C(2023) 1087 final.

STREAM is closely monitoring this topic and will support its clients in the necessary application procedures to demonstrate qualification requirements, including admissibility, eligibility, relevance, quality, technical aspects, financial aspects, and operational aspects, among others.