Brussels, May 20, 2025
The European Commission has announced the results of the second auction of the European Hydrogen Bank, selecting 15 projects to receive a total of €992 million. This funding injection primarily aims to boost the production of 2.2 million tonnes of renewable hydrogen over the next decade, which will lead to the reduction of 15 million tonnes of CO2 emissions. Hydrogen Europe has congratulated its members on the successful submission of their proposals.
The selected projects span strategic sectors such as transport, chemicals, and methanol and ammonia production. The funding, sourced from revenues of the EU Emissions Trading System (ETS), seeks to bridge the gap between renewable hydrogen production costs and current market prices, thereby accelerating the deployment of cleaner energy alternatives.
In the auction’s general basket, the premiums requested by the awarded project promoters ranged from €0.2/kg to €0.6/kg, with most falling below €0.5/kg, confirming the trends from the first auction. Spain leads with 8 awarded projects, followed by Germany (2), the Netherlands (1), and Finland (1). The largest projects are based in Germany and the Netherlands.
In the maritime basket, the premiums requested ranged from €0.45/kg to €1.88/kg, and all three selected projects are located in Norway.
Each individual subsidy for the 15 projects ranges from €8 million to €246 million, over a period of up to 10 years. If all these projects reach Final Investment Decision (FID), Europe would almost double its current electrolyser capacity (from 2.7 GWel to 5 GWel).
“The results of the second auction confirm the price ranges from last year’s pilot auction, also showing strong expectations for the off-taker to cover price increases, driven by strong policies like RED III. The winning projects in Germany and the Netherlands, being the largest, are a positive market signal, demonstrating that economies of scale and being close to industrial demand favors project development,” said Daniel Fraile, Chief Policy & Market Officer at Hydrogen Europe.
Additionally, results are still pending for the ‘Auction-as-a-Service’ feature, where Spain, Lithuania, and Austria are allocating up to €836 million in national funding for projects in their respective countries. Signed projects are required to reach financial close within a maximum of two and a half years after signature and to start producing renewable hydrogen within a period of five years, receiving the fixed premium subsidy for a period of up to ten years for certified and verified renewable hydrogen production.
The selected projects will now be invited to prepare their grant agreement with the European Climate, Infrastructure and Environment Executive Agency (CINEA), with agreements expected to be signed by September/October 2025.