Hydrogen Auction
A Key Driver for Hydrogen Projects
The EU Innovation Fund (IF) is one of the world’s largest funding programmes for the deployment and commercialisation of low-carbon and innovative technologies. Alongside the existing programmes, the European Commission introduced in November 2023 a novel support system through competitive bidding / auctions. This is a significant initiative to increase the development of hydrogen-related projects across the EU.
The second, larger Hydrogen Auction took place early December 2024 and received 61 bids from 11 countries. The European Hydrogen Bank () will support producers of Renewable Fuel of Non-Biological Origin () with up to €1.2 billion. Successful bidders will receive a fixed premium in €/kg for a decade, closing the gap between production costs and market prices.
A Third Hydrogen Auction
Based on the experiences from the second auction, the terms and conditions for a third hydrogen auction will most likely be finalised before the end of 2025.
Nordic Innovators has been involved since the first auction, so don’t hesitate to reach out if you wish to place a bid in the third auction – we support you throughout the entire process!
Contact our Energy, Climate and Circular Economy Business Unit
4 Key Objectives
The Hydrogen Auction will allocate funding to innovative projects and is another important step to further advance the production of renewable hydrogen across the EU. It is a cost-efficient support for the roll-out of low-carbon technologies needed for the green transition. The four objectives of the Innovation Fund Hydrogen Auctions are:
1. Reducing the cost gap between renewable and fossil hydrogen in the EU
2. Allowing for price discovery and renewable hydrogen market formation
3. De-risking European hydrogen projects
4. Reducing administrative burdens.
Updates on The Second Hydrogen Auction
* New resilience and security of supply requirements
* Higher maturity levels for applicants
* A revised price ceiling
* A dedicated €200 million budget for projects supplying the maritime sector.
