European Hydrogen Bank Launches Second Auction To Drive Renewable Fuel Projects

12/3/2024 8:07:09 AM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 3. The European Commission unveiled the second auction under the European Hydrogen Bank today, allocating 1.2 billion euros from the EU Emissions Trading System (ETS) revenues to support renewable hydrogen initiatives across the European Economic Area (EEA), Trend reports.

This second round, known as the IF24 Auction, reflects a 400 million euro increase in funding compared to its predecessor. The budget includes 1 billion euros earmarked for renewable hydrogen production projects, regardless of the sector in which the hydrogen will be consumed. An additional 200 million euros is specifically set aside for projects serving the maritime sector, a vital area for decarbonizing long-haul transport.

To streamline financing for hydrogen projects, the Commission introduced an "Auctions-as-a-service" mechanism. This model allows member states to support projects that were not selected for Innovation Fund grants due to budget constraints. By pledging national funds through this mechanism, countries can avoid the cost and complexity of setting up separate auctions.

Spain, Lithuania, and Austria are the first Member States to join this initiative, committing up to 836 million euros collectively to back hydrogen production projects within their borders. These contributions are expected to attract significant private investment and help the EU maintain its leadership in the renewable energy sector.

The IF24 Auction and accompanying measures are integral to the EU's broader strategy to scale up renewable hydrogen as a cornerstone of its energy transition. The auction process is expected to conclude in mid-2024, with selected projects receiving financial support shortly thereafter.

MENAFN03122024000187011040ID1108950890

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.