European Hydrogen Bank Auction Defies Expectations with Record Low Bids
Regional Dynamics: Iberia, Nordics, Germany Trailblaze with Low Bids, EU Electrolyzers Dominate
Concise Section:
- The first auction under the European Hydrogen Bank mechanism cleared well below expectations, with the seven winning projects bidding at Eur0.37-0.48/kg ($0.40-$0.51/kg).
- The EU will provide Eur720 million to the projects totaling 1.5 GW of electrolysis capacity, which will produce 1.58 million mt of green hydrogen over 10 years.
- The subsidy amounts range from Eur8 million to Eur245 million, with two 500-MW projects taking the bulk.
- The auction drew 132 bidders, with the fund many times oversubscribed.
- Iberia, Nordics, and Germany lead in projects.
- Most bids were below €1.5/kg.
- The average cost of renewable H2 per country ranges between €5.3 - 13.5/kg.
- Most projects secured electrolyzers from the EU, but a quarter opted for China made electrolyzers.
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