The EU will launch its second hydrogen auction in the spring of 2024

On November 20, the President of the European Commission, Ursula von Draine, announced that the European Commission would start the second round of hydrogen auction in the spring of 2024 to support green hydrogen production within the European Union and make up the cost gap between green hydrogen and gray hydrogen production of local producers, with a budget of 2.2 billion euros (about 2.4 billion dollars) DX53D+ZM steel.

European Hydrogen Bank focuses on regional hydrogen subsidies and launched a preliminary pilot tender with a budget of 800 million euros (approximately 873 million US dollars) on November 23, aiming to provide financial support for EU green hydrogen producers. Earlier this year, the European Commission stated that it would provide a fixed premium to auction winners, up to 4.5 euros per kilogram of green hydrogen (approximately $4.9 per kilogram of green hydrogen), for a period of 10 years. However, in order for relevant enterprises to obtain formal qualifications, they must start operating the established project within 5 years after signing the funding agreement, and the newly installed electrolytic cell capacity must reach at least 5 megawatts and meet other standards. It is currently unclear whether the second bidding in spring 2024 will follow the same subsidy model DX53D+ZM steel.

Von der Leyen said that the EU will make it easier to obtain public financing from producers by creating one-stop shops under the European Hydrogen Bank and directly connecting hydrogen producers and consumers. In this model, green hydrogen will be signed by government supported entities with long-term contracts at the cheapest price, and then sold to the highest bidder in a one-year contract, with the government paying for the difference in cost. Although the pilot auction is only open to the EU, von der Leyen indicated that the European Commission is committed to developing the international branch of the European Hydrogen Energy Bank DX53D+ZM steel .

In order to develop a global market for clean hydrogen, the European Union has signed hydrogen cooperation agreements with multiple countries such as Egypt, Kenya, and Namibia.