European Hydrogen Bank takes shape

Brussels - The planned EU hydrogen bank is to conduct auctions for the member states. In a first step, 800 million euros are available for European hydrogen production. Details on the work of the hydrogen bank were now announced by the EU Commission in Brussels. The main objective of the bank is to mobilise private investment in hydrogen value chains in the EU and third countries by closing the cost gap between renewable hydrogen and fossil fuels. The money will initially come from the EU Innovation Fund, which is fed by revenues from the auctioning of CO2 allowances.

In autumn 2023, the first pilot auctions for renewable hydrogen production in the EU will be launched under this fund. Eight hundred million euros are available for this purpose. The auction will grant hydrogen producers a subsidy in the form of a fixed premium per kilogramme of hydrogen produced for a maximum of 10 years of operation. The EU Commission proposes to set up an EU auction platform through the Hydrogen Bank, which would offer 'auctions as a service' to the member states and use both the EU Innovation Fund and the resources of the member states.
 

International dimension still unclear

The bank is also supposed to play a coordinating role, such as collecting demand and supply information, providing transparent price information and developing price benchmarks. The EU Commission is still unsure how the international dimension of the European Hydrogen Bank can be designed to create incentives for the import of renewable hydrogen. All elements of the hydrogen bank should be operational by the end of the year. /rl