The European Commission has unveiled draft terms for its third European Hydrogen Bank auction, due by year-end, expanding eligibility to include low-carbon electrolytic hydrogen for the first time. While projects must still meet the EU’s low-carbon criteria of 70% lower lifecycle emissions than fossil fuels, the inclusion marks a policy shift beyond strictly renewable RFNBO hydrogen.

The auction follows February’s Clean Industrial Deal announcement and represents a bid to balance strict renewable targets with practical low-carbon options. “Low-carbon hydrogen must still cut emissions by 70% over fossil fuels,” the Commission noted, signaling nuclear-powered electrolysis as a viable pathway alongside renewables in its decarbonization push.