EU to launch second hydrogen auction worth €2.2bn in spring 2024
European Commission aims to create 'one-stop-shop' linking H2 supply and demand through the European Hydrogen Bank
The European Commission (EC) will open its second auction to cover the cost gap between green and grey hydrogen in spring next year, with a budget of €2.2bn ($2.4bn), announced EC president Ursula von der Leyen in an address to the European Hydrogen Week today (Monday).
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The so-called European Hydrogen Bank, originally launched in October last year, is set to open an initial €800m pilot tender for bids this week.
“We will do this by creating a public platform where consumers can indicate their demand, and producers can find their off-takers,” she said.
This could imply that the next stage of the European Hydrogen Bank may operate in a similar fashion to double-sided auction model used by the H2 Global import scheme in Germany.
There, green hydrogen is bought by a government-backed entity on long-term contracts for the cheapest price and then sold on to the highest bidder on one-year contracts — with the cost of difference covered with public funding.
While the pilot auction is only open to bidders within the EU, von der Leyen also hinted that the EC is “working on the international leg of the European Hydrogen Bank”.