The EUHB auctions showcased differences in project sizes, with Round 1 focusing on larger-scale projects and Round 2 accommodating a broader range of sizes. Both rounds maintained consistently low bid pricing to ensure competitiveness and cost-effectiveness. In these auctions, the bid price refers to the subsidy (EUR/kg of hydrogen) developers request to cover part of the green hydrogen production cost. Since the cost of producing renewable hydrogen is often higher than what producers are willing to pay, the bid price serves to bridge this gap. According to the European Commission, the auction selects the lowest bids in order of project ranking until the available budget is fully allocated, which incentivises competitiveness for project wins. Round 1 concentrated on fewer, larger-scale projects like Project Catalina in Spain and Madoqua Power 2X in Portugal, each with 500MW, with bid prices ranging from EUR0.37 to EUR0.48/kg. Most projects were situated in regions rich in cheap renewables, such as Spain, Portugal, and the Nordics. In contrast, Round 2, with a larger budget, supported a wider range of project sizes, from large-scale initiatives like Zeevonk at 560MW to smaller ventures like Hammerfest with a 7.5MW bid capacity. Many projects in Round 2 fell within the 15-100MW range, showcasing diverse applications. Bid prices in the second round varied, with ultra-low bids as low as EUR0.2/kg and higher ones, particularly in the maritime fuel sector, up to EUR1.88/kg, reflecting the goals of scaling mature production while encouraging innovation in emerging sectors. However, despite these consistently low bid prices, there is a strong risk that projects could struggle to deliver due to high LCOH.
