BAKU, Azerbaijan, June 4. The European
Commission is advancing the development of the European hydrogen
market by launching a pilot mechanism under the recently adopted
decarbonized gases and hydrogen package, Trend reports.
According to the commission, this initiative aims to accelerate
investments by providing a clearer picture of the market situation
for both off-takers and suppliers and by facilitating connections
between them. Set to operate for five years, this mechanism will be
a part of the European Hydrogen Bank.
The hydrogen pilot mechanism will collect, process, and provide
access to information on the demand and supply of renewable and
low-carbon hydrogen and its derivatives, enabling European
off-takers to connect with both European and international
suppliers. It will gather market data on hydrogen flows and prices.
A procurement process has begun to find a service provider to
develop an IT platform for the pilot mechanism, with a contract
expected to be signed by the end of this year, allowing operations
to begin by mid-2025.
Across Europe, the first large-scale electrolyzers are already
under construction, and the initial off-take agreements have been
signed. Enhancing demand visibility between suppliers and consumers
will help accelerate final investment decisions and secure off-take
agreements. Hydrogen will play a crucial role in achieving our
Green Deal targets, phasing out Russian fossil fuels, and
supporting the decarbonization and competitiveness of European
industry.
The pilot hydrogen mechanism is part of the commission’s broader
efforts to establish a European Multiproduct Platform for the joint
purchase of strategic commodities, which may eventually include
strategic raw materials.
Meanwhile, the commission has established the European Hydrogen
Bank to boost investments in hydrogen projects and facilitate the
development of a complete hydrogen value chain in Europe. The first
domestic auction was a success, attracting 132 proposals, with
seven projects selected to receive nearly 720 million euros in
financial support from the Innovation Fund. The commission plans to
launch a second domestic auction by the end of this year and is
collaborating with member states to develop potential international
auctions.
