EHB

European funding programme for renewable hydrogen production

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Accelerate the hydrogen value chain in Europe

European Hydrogen Bank

The European Hydrogen Bank is an EU initiative to support Renewable Fuels of Non-Biological Origin (RFNBO) hydrogen production within the EU and internationally. It entails a new competitive bidding mechanism under the Innovation Fund, aiming to create investment security and business opportunities for European renewable hydrogen production.

In short

European Hydrogen Bank Auction

For whom?

Legal entities (public or private bodies) established in any country in the world and planning to install new electrolyser capacities in the European Economic Area (EEA).

When to apply?

The first pilot auction was open from 23 November 2023 to 8 February 2024 (17:00 CET). Most likely the results for the first round application will be announced end of April.

The European Commission announced that a second round of auctions to support the production of renewable hydrogen within the EU will most likely be out in Autumn 2024.

How much?

The second auction round will have a total budget of 2.2 billion euros.

The maximum requested grant per project is maximum 1/3 of the available budget.

The grant will be paid as output-based support in form of a fixed premium in €/Kg of RFNBO hydrogen produced over 10 years, upon verified and certified production of RFNBO volumes

The auction’s ceiling price is 4.50 €/Kg (bids are ranked from lowest to highest price)

For what?

The auction good is RFNBO (renewable) hydrogen, requiring production from new capacity (i.e., capacity that has not yet commenced at the time of application)Produced in EEA countries in a single location

The grant can cover 10 years of production period

The bid price per unit is expected to cover the difference between the expected revenues from the sale of one hydrogen unit and its levelized cost.

Project costs can include:

  • Costs for the installation of new RFNBO hydrogen capacity and operation for a period up to 10 years
  • Cost elements like production, sale, transport, and storage can be considered into the bid.

Cumulation rules

Cumulation with other public supports

The European Hydrogen Bank has different rules for the cumulation of the support under the auction with other public support. A non-exhaustive list of the rules is highlighted below.

Cumulation is NOT allowed with:

  • CAPEX or OPEX support for hydrogen producers, i.e. other EU funding (Innovation Fund, CEF, IPCEI, etc.)
  • National State aid
  • Compensation for indirect emission costs.

 

Cumulation is allowed in the following cases:

  • Aid for early project development phases (e.g. feasibility, FEED studies, research)
  • Previous aid for electrolyser capacity development that is not part of the bid
  • Support for transport and storage infrastructure to the project, provided that the infrastructure is not dedicated exclusively to the project
  • Aid provided to electrolyser manufacturers.

Meet the requirements

European Hydrogen Bank Auction conditions

To apply for the European Hydrogen Bank Auction, you must meet the following criteria:

Your project must have a minimum 5MW(e) of newly installed electrolyser capacity in a single location in an EEA country

Your project has not taken any firm commitment (e.g. order of equipment or start of construction) prior to application

Your project’s planned entry into operation is less than 5 years from grant signature

Your project will be able to secure a completion guarantee of 4% of the maximum grant amount from a financial institution

Your project will be able to certify 70% GHG savings on overall production at the end of the support period

There is no restriction on sector of offtake or origin of the electrolyse

Your project has a bid price up to 4.50 €/Kg

Your project budget does not exceed 1/3 of the total available budget for the Auction.

Grant application process

Apply for the European Hydrogen Bank

Applying for the European Hydrogen Bank Auction involves a considerable amount of effort and specific expertise in call and bidding strategy. To have a real shot at success in this competitive program, you need to develop a high-quality proposal that includes the following items:

  • Competitive bid price
  • Application form A: administrative information and summarised budget
  • Application form B: Technical description up to 50 pages
  • Application form C: Project’s contribution to EU programme KPIs
  • Detailed budget table/calculator (Financial Information File)
  • Participant information
  • Timetable/Gantt chart
  • Renewable electricity sourcing strategy, including LoI/MoU/pre-contractual agreements
  • Off-take and price hedging strategy, including LoI/MoU/pre-contractual agreements
  • Electrolyser procurement strategy, including LoI/MoU/pre-contractual agreement
  • Permits, licences and authorisations (e.g. evidence of initiated process with relevant national or regional authorities to receive an environmental permit, evidence of the strategy to receive a grid connection, etc.)
  • Completion guarantee letter of intent (at proposal stage) and completion guarantee (for projects invited to grant preparation).

How can EGEN support you?

EGEN’s consultants can support you in performing the required calculations, structuring, and writing convincing documents, and managing the application process. Furthermore, they can assist you in strategically scoping and positioning your project in accordance with relevant market trends and EU policy objectives. Most importantly, EGEN can provide strategic market intelligence on the call to help you define a successful bid price.

EGEN is part of PNO Group and has experts in the domains of environment, energy and mobility who have the mission to accelerate sustainable innovation.

why this grant?

Purpose of the European Hydrogen Bank

The European Hydrogen Bank Auction call for RFNBO hydrogen is economically efficient for technologies moving from commercial demonstration to scale-up of technologies, by:

  • Reducing the cost gap between renewable and fossil hydrogen in the EU
  • Allowing for price discovery and renewable hydrogen market formation
  • De-risking European hydrogen projects
  • Contributing to faster deployment and simpler implementation of projects, while reducing administrative burdens and costs.

At EGEN, we specialize in guiding our clients through the intricacies of the European Hydrogen Bank Auction. With a dedicated focus on advancing renewable hydrogen projects, we offer expertise to those planning and implementing sustainable solutions within the European Economic Area. Let us be your strategic partner in contributing to the acceleration of the hydrogen value chain in Europe

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