The European Commission has officially launched the second European Hydrogen Bank auction, offering a significant boost to the renewable hydrogen sector with a total budget of approximately €1.2 billion. Renewable hydrogen producers can bid for a fixed-price premium of up to €4 per kilogram of hydrogen produced over 10 years. The auction is structured into two baskets: a general basket (€1 billion) and a newly introduced Maritime basket (€200 million).  

Additionally, the Auction-as-a-Service (AaaS) model will bring further funding contributions from EU Member States, including Austria (€400 million), Spain (€280-400 million), and Lithuania (€36 million), bringing the total firepower of the Bank to around €2 billion. 

The new eligibility criteria for the second auction include limiting electrolyser stack sourcing from China to a maximum of 25% (in MWe), along with other manufacturing steps, as well as requiring mandatory compliance with European and international safety and cybersecurity standards. Projects will now face stricter requirements to demonstrate their maturity, including a new mandate to reach final investment decision within 2.5 years of the grant signature and an increased completion bond set at 8%. 

However, there is currently no visibility on future Hydrogen Bank auctions, leaving the sector in need of clearer guidance on upcoming rounds to better structure projects and determine the optimal timing for applications. 

Bidders can apply via the EU Funding and Tenders Portal until 20 February 2025, with an information session scheduled for 10 December 2024. Successful applicants will be notified in Spring 2025. 

Innovation Fund Grant 2024 Launched 

The European Commission has also unveiled the Innovation Fund Call 2024, allocating €3.4 billion to support breakthrough clean energy projects. The call is split into: 

• A General Innovation Fund Call (€2.4 billion), covering large (€1.2 billion), medium (€200 million), and small (€100 million) decarbonization projects, cleantech manufacturing including electrolysers and fuel cells (€700 million), and pilot projects (€200 million). 

• A Battery-Specific Call (€1 billion), which will support projects on electric vehicle battery cells manufacturing demonstrating innovative technologies. 

This year’s Innovation Fund introduces significant enhancements. The grants-as-a-service model allows Member States to provide additional funding for projects that pass the Fund’s evaluation but exceed the budget ceiling or require supplementary national support.  

The introduction of the STEP seal, an EU quality label recognizing high-quality projects that contribute to the Strategic Technologies for Europe Platform (STEP) objectives, enhances the Innovation Fund’s impact. This label will be given to projects exceeding the evaluation thresholds and is designed to attract additional funding from both private and public sources. 

The deadlines for applications are 24 April 2025, with info sessions planned for 17 December 2024 (General Call) and 18 December 2024 (Battery Call).  

A Catalyst for Growth 

Commenting on the announcements, Jorgo Chatzimarkakis, CEO of Hydrogen Europe, said: 

“We welcome the launch of the second European Hydrogen Bank auction and the Innovation Fund Call 2024 as vital steps in advancing the hydrogen sector and Europe’s clean energy goals. The Innovation Fund remains a cornerstone for clean hydrogen projects, with new tools like the STEP seal and grants-as-a-service enhancing opportunities to pool additional resources and attract investments, ensuring the sector continues to build momentum. However, greater visibility on future Hydrogen Bank auctions is crucial to help developers plan and decide on the best timing for applications, ensuring project pipelines progress efficiently.” 

• European Hydrogen Bank Auction – General 

• European Hydrogen Bank Auction – Maritime 

• Innovation Fund Call 2024 – General 
• Innovation Fund Call 2024 – Battery