The tender aims to target emission intensive industries such as glass, steel, cement and chemicals by offering them CCfD payment to reduce the cost gap between conventional and low carbon methods of production like electrification, DRI facility, hydrogen-compatible furnace, etc.
A total budget of €22 billion has been allotted with €4 billion for Round 1 providing subsidies for 15 years with a maximum budget of €1 billion per company. The scheme is targeted for small to medium players and directly promotes the uptake of hydrogen (specifically green hydrogen) in industry. The scheme doesn’t incentive the production of hydrogen, and industrials can stack CCfD subsidy and hydrogen purchase incentives such as the one provided by the H2 Global initiative.
Here’s our take at Yamna!
