The European Commission is preparing to launch the fourth auction of the European Hydrogen Bank (EHB), the EU’s main instrument for supporting growth in the sector, which was launched in 2023 as part of the REPowerEU plan – an initiative launched in the wake of the energy crisis following Russia’s invasion of Ukraine.
Hydrogen Europe, in a post published on LinkedIn, welcomed Brussels’ decision as a sign of renewed confidence in the sector, stating that the draft terms and conditions of the new procedure would be published by the end of June, whilst the official launch of the auction is scheduled for the end of the year.
The association emphasised that the sector is expecting “adequate funding for the fourth auction, reflecting the consistent and significant excess demand recorded in previous rounds”. The The third auction had, in fact, a budget of 1.3 billion euros, but it had received funding applications totalling around 8.4 billion.
The main change in the next round is expected to concern the scheme’s technological scope. According to Hydrogen Europe, the new procedure will comprise a single stream open to both RFNBO-certified renewable hydrogen – so-called ‘green hydrogen’ – and H2 low-carbon.
A decision that would mark a shift in approach on the part of Brussels, which has so far focused primarily on supporting green hydrogen, in line with the approach a measure that Italy has also called for on several occasions in the short and medium term.
The organisation, which, together with H2Europe and 18 national hydrogen associations, has sent a letter to the Commission calling for the fourth auction to be used as an opportunity to improve the mechanism, proposes maintaining strict criteria to verify the financial soundness of the selected projects, whilst allowing for more flexible deadlines for the plants to become operational. The recommendations also include greater integration between support schemes for production and those designed to stimulate demand from future buyers.
