BAKU, Azerbaijan, May 3. The European
Commission has doled out nearly 720 million euros to seven
renewable hydrogen projects across Europe, chosen through the
inaugural competitive bidding process of the European Hydrogen
Bank, Trend
reports.
These victorious contenders will churn out renewable hydrogen
within Europe and snag subsidies to narrow the cost gap between
their production expenses and the prevailing market price dominated
by non-renewable producers, stated the Commission. They highlighted
that this renewable hydrogen will find utility in various sectors
like steel, chemicals, maritime transport, and fertilizers.
Collectively, the winning projects aim to yield 1.58 million
tons of renewable hydrogen over the span of a decade, averting over
10 million tonnes of CO2 emissions, as disclosed by the
Commission.
The selected projects will now embark on crafting their
respective grant agreements with the European Climate,
Infrastructure, and Environment Executive Agency (CINEA), with the
aim to seal them by November 2024 at the latest.
As per the Commission’s directives, the projects must commence
renewable hydrogen production within a maximum of five years
post-signing of the grant agreement. They’ll receive the fixed
premium subsidy awarded for up to a decade for certified and
verified renewable hydrogen production.
Funds for this auction stem from the proceeds of the EU
Emissions Trading System, with the Commission gearing up to kick
off a second European Hydrogen Bank auction by the close of
2024.
