Address :
YamnaCo Ltd 27 Old Gloucester Street London WC1N 3AX, UNITED KINGDOM

The first EU Hydrogen Bank auction awarded € 720mn in subsidies last week

The first EU Hydrogen Bank auction awarded €720 million in subsidies last week to produce 1.58 million tons over the period of 10 years to produce 1.58 million tons of renewable hydrogen. Projected European renewable hydrogen hotspots such as Portugal (2 bids), Spain (3 bids), Norway (1 bid), and Finland (1 bid) clean up subsidies with the 7 winning bids (~1.5 GW) selected out of 132 (~8.3 GW).
With an average clearing bid of €0.46/kg, the bids have been way short of the ceiling price of €4.5/kg and well below the estimated Levelised Cost of Hydrogen (LCOH), therefore requiring off takers to pay a “green premium” to cover the cost gap. Despite the higher willingness to pay in the mobility sector, more bids were received for the industrial use of hydrogen, with a predominance of fixed-price offtake contracts.
Here’s our take at Yamna!

Here are some publications that may interest you

Norway announces competitive bidding process for the production of H2 for maritime use

Norwegian state-owned Enova SF, under the Klima- og miljødepartementet, will provide investment support via a competitive bidding process for projects…

Read more
The definition of “low carbon hydrogen” by various hydrogen consumers

Major hydrogen consumer markets such as the EU, the USA, Japan and South Korea have now clarified their definition of…

Read more
Norsk Hydro produces World’s first aluminium using green hydrogen

Kudos to Norsk Hydro and Hydro Havrand for producing world's first aluminium batch using green hydrogen This is a great…

Read more
Norway: A prospective world leader for Green products export

With EU target to import 10 million tons of hydrogen by 2030, there arises the question of who is set…

Read more
Green molecules or Green Electrons: Is producing green H2 and transporting via H2 pipelines across intercontinental distances (<5000 km) the best option?

Due to long distances between hydrogen production hubs (low-carbon energy resources) and demand centers (industrial hubs), there is an urgency…

Read more
The Green Steel case

The steel industry is crucial for the world with its widespread application in the construction, automotive and mechanical parts industries.

Read more