This funding, sourced from EU Emissions Trading System revenues, aims to support the production of renewable hydrogen in Europe. These projects will receive subsidies to offset the price difference between their production costs and the current market price, which is largely influenced by non-renewable producers. By facilitating cleaner fuel production, the European Hydrogen Bank contributes to the decarbonization of European industry, with the produced hydrogen earmarked for sectors like steel, chemicals, maritime transport, and fertilizers.

The selected projects emerged from a highly competitive auction, attracting 132 bids. Over ten years, they aim to produce 1.58 million tonnes of renewable hydrogen, preventing over 10 million tonnes of CO2 emissions. Spread across four European countries, these projects proposed bids ranging from €0.37 to €0.48 per kilogram of renewable hydrogen and met all qualifying criteria. Subsidies for these projects range from €8 million to €245 million.

Furthermore, through the "Auctions-as-a-service" mechanism, Germany has allocated €350 million in national funding for top-ranked projects not qualifying for EU-level support but meeting eligibility criteria. Other Member States are encouraged to leverage this mechanism for future auctions.

The selected projects will now finalize grant agreements with the European Climate, Infrastructure, and Environment Executive Agency (CINEA) by November 2024. Within a maximum of five years of signing, they must commence renewable hydrogen production, receiving fixed premium subsidies for up to a decade for certified production.

The Commission plans to launch a second European Hydrogen Bank auction by year-end, building on insights from this inaugural auction and consulting stakeholders further.