EU to hold €800mn hydrogen auction

The bloc will award projects with a fixed premium per kilogram of renewable hydrogen produced

The European Commission will launch its first auction for supporting renewable hydrogen production within the bloc this autumn, in an effort to match incentives offered by the US Inflation Reduction Act. Winning bids will be awarded a fixed premium per kilogram of hydrogen produced over a ten-year period through the EU’s Innovation Fund, although the bloc has not disclosed what this premium will be. The Commission has budgeted €800mn ($873.76mn) for the auction and is expected to release further details this June. The Commission also plans to introduce a competitive bidding mechanism to subsidise the production cost of components for wind and solar energy, batteries and electrolysers. It exp