The third auction of the European Hydrogen Bank (EHB) resulted in the approval of EUR 1.09 billion for 1.3 million tons of hydrogen. There are nine projects, for 1.1 GW of electrolyzer capacity. Greece-based joint venture Hellenic Hydrogen placed the lowest successful bid for funding in the general category, for its planned facility at the site of a former coal power plant.
The European Commission has selected nine hydrogen production projects under the third auction of the European Hydrogen Bank. Across seven countries in the European Economic Area, they are expected to provide nearly 1.1 GW of electrolyzer capacity and produce over 1.3 million tons over their first 10 years of operation. The estimated greenhouse gas emissions avoidance is nine million tonnes of carbon dioxide equivalent.
The developers will receive EUR 1.09 billion in total European Union funding from the Innovation Fund, sourced from the EU Emissions Trading System (ETS). The hydrogen would contribute to reducing emissions from energy-intensive industries such as transportation and chemicals. The projects are expected to strengthen Europe’s industrial leadership, long-term competitiveness and jobs, and contribute to EU’s clean transition, energy independence and security, the update reads.
The auction awards successful projects with a subsidy to help cover the price difference between their production costs and the market price. The objective is to incentivize clean hydrogen production and use. If they sign the grant agreements, the selected projects will receive a fixed premium of between EUR 0.44 and EUR 3.49 per kilogram of certified and verified hydrogen produced, for a maximum period of 10 years.
North-1 hydrogen valley to contribute to just transition of Greece’s coal region
Five projects are under the renewable hydrogen fuels of non-biological origin (RFNBO) general topic. Greece-based Hellenic Hydrogen placed the lowest successful bid, EUR 0.57 per kilo for 38,654 tons. Its AN-1-B project is for a 25 MW electrolyzer. The site is a former coal plant in Amyntaio in the Western Macedonia province in the country’s north.
The joint venture that Motor Oil Hellas, holding 51%, and Public Power Corp. (PPC) established in 2023 intends to establish a so-called hydrogen valley. The overall North-1 endeavor envisages expanding the electrolyzer to as much as 200 MW, within the efforts for a just transition of the coal region.
The electrolyzer capacity in Amyntaio could grow to 200 MW
Hellenic Hydrogen would deliver hydrogen with natural gas in a mix of 80% to 20%, respectively. A pipeline, fitted for up to 100% of hydrogen, would supply a combined heat and power (CHP) plant at the location of former coal plant Kardia.
According to the documentation, the firm is also counting on export opportunities and the decarbonization of heavy duty vehicles in the area.
The European Commission approved a EUR 111.7 million grant last year for Motor Oil for the production of green hydrogen. The aid was from the EU’s Recovery and Resilience Facility (RRF) and the National Recovery and Resilience Plan Greece 2.0. Hellenic Hydrogen also initiated the Blue Med project, for the creation of a complete supply chain through to the utilization of the renewable gas.
Another electrolyzer would be set up at Motor Oil’s refinery in Agioi Theodoroi, Corinth.
Two beneficiaries from first bidding for low-carbon electrolytic hydrogen
In the general category, two projects are in Denmark, one is in Spain and one in Austria. There are two under the RFNBO low-carbon topic, for 500 MW in Finland and 120 MW in Germany. It was the first bidding for low-carbon electrolytic hydrogen.
Both remaining projects are in Norway. They won funding under the maritime-aviation topic for electrolyzers of 12 MW and 12.5 MW.
Spain, Germany separately add EUR 1.7 billion to funding pot
In addition, Spain and Germany are participating through the auctions-as-a-service feature, adding a further EUR 1.7 billion in national funds. It enables member states to use national resources to support projects in their own territories that have applied to the auction.
The European Climate, Infrastructure and Environment Executive Agency (CINEA) is starting the formal preparation of grant agreements with the selected projects. The European Commission expects the signing in the last quarter of this year.
The selected projects would have to reach financial close within two and a half years of grant signature and enter into operation within five years.
The third auction closed on February 19. It attracted 58 bids from 11 countries, resulting in an oversubscription of over six times the budget of EUR 1.3 billion.
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