The EU intends to launch a pilot auction for supporting renewable hydrogen production in the autumn of 2023 as part of its newly-released Green Deal Industrial Plan.
According to the plan, presented by the European Commission on Wednesday, the auction will have an indicative budget of EUR 800 million (USD 872m). Winners in the tender will get a fixed premium for each kilogram of green hydrogen produced over a period of 10 years. The Commission says this will be similar to the production tax credit offered in the US Inflations Reduction Act (IRA), except that the EU support will be more cost-effective as the premium will be determined through competitive bidding.
Terms and conditions for the planned first auction will be unveiled in June 2023. The funding will come under the EU Innovation Fund.
Under its REPowerEU plan to end its dependence on Russian fossil fuels, the EU targets 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of imports by 2030.
(EUR 1 = USD 1.089)