European Hydrogen Bank
The Communication sets out the four pillars of the EHB, which should be operational by the end of 2023. Two of them are financing mechanisms – for creating the EU domestic market, and for international imports into the EU. The third pillar is linked to transparency and coordination – assessing demand, infrastructure needs, hydrogen flows, and cost data. The final element is streamlining existing financial instrument – coordinating and blending these with new public and private funding, both in the EU and internationally.
The Commission is intending for the EHB to cover and lower the cost gap between renewable hydrogen and fossil fuels for early projects. This will be achieved through an auction system for renewable hydrogen production to support producers through a fixed price payment per kg of hydrogen produced for a maximum of 10 years of operation. The first pilot auctions are currently being designed and they are due to be launched in autumn 2023, backed by €800 million from the Innovation Fund. The Bank will create an EU auction platform offering “auctions-as-a-service” for Member States, using both Innovation Fund and Member State resources, to fund renewable hydrogen projects without prejudice to EU state aid rules.
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