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 European Hydrogen Bank () supports producers of Renewable Fuel of Non-Biological Origin () with +€1.2 billion. Successful bidders receive a fixed premium in €/kg for a decade, closing the gap between production costs and market prices.
Nordic Innovators has been involved since the first auction with great results, 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!
Four Key Objectives
The Hydrogen Auction allocates 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.
Successful cases from the Second Hydrogen Auction
The Zeevonk project secured €246 million
The Zeevonk project – a joint venture between Vattenfall and Copenhagen Infrastructure Partners secured €246 million in f - the highest amount awarded in the second auction.
The innovative Zeevonk project stands out globally by combining an onshore electrolyser with an offshore wind farm, converting much of the electricity into green hydrogen. It is a major step forward for advancing Europe’s ambitions and accelerating the transition to a future.
Successful Maritime Hydrogen Project
Norwegian Hydrogen was one of only 3 successful hydrogen projects in the second auction to enter Grant Agreement Preparation!
Their project; in Norway, is awarded up to EUR 13.2 million. This funding helps bridge the cost gap between renewable hydrogen production and market prices. Moreover, this win significantly accelerates Norwegian Hydrogen’s ambition to supply green hydrogen to their industrial customers and strengthens Europe’s drive toward a greener maritime sector.
Development of a Hydrogen Production Facility
Gen2 Energy, based in Norway Mosjøen, has been awarded up to €61.6 million in funding from the second Hydrogen Auction. The funding supports the company’s efforts to produce green hydrogen specifically for the maritime sector, and marks a breakthrough for value creation and emission reductions in Norwegian shipping.
Morevoern this major grant recognises both the strategic importance and technical maturity of their large-scale renewable hydrogen initiative—and marks a significant step forward in advancing Europe’s clean hydrogen supply.