EU announces next hydrogen bank auction and backs project in Brazil

The European Commission made two big announcements concerning the support of hydrogen projects, at home and abroad.

The announcements, made by EU Commission president Ursula von der Leyen at European Hydrogen Week in Brussels, included the second auction of the European Hydrogen Bank due to take place in 2024, as well as an agreement with the Brazilian state of Piaui for a 10GW green hydrogen project.

European Hydrogen Bank

Not only does the Hydrogen Bank's €800 million ($876 million) pilot auction take place this week, but von der Leyen has also confirmed the second auction will take place in Spring 2024. Round two will have a budget of €2.2 billion ($2.4 billion), meeting the balance of the €3 billion ($3.3 billion) budget first promised.

The auction will see project promoters competing to receive European subsidies designed to spur development of the nascent sector.

The Bank was created to stimulate investments in sustainable hydrogen production and support the EU in reaching its REPowerEU targets of producing 10 million tonnes of renewable hydrogen by 2030.

Furthermore, the Bank aims to attract private capital and ensure the creation of a proper commercial offtake market.

“This is a promise we made a year ago and it is now becoming reality,” said President von der Leyen, referring to her 2022 State of the Union address in which the Hydrogen Bank was first announced.

Jorgo Chatzimarkakis, CEO of Hydrogen Europe, has hailed the announcement of the second auction as excellent news, suggesting it provides the visibility the sector needs to plan infrastructure rollout.

Have you read?
New partnership looks to nuclear for low-cost hydrogen generation
Siemens Energy and Air Liquide inaugurate 1GW electrolyser factory

Hydrogen in Brazil

The second announcement made by von der Leyen concerns a significant investment, via the EU’s Global Gateway strategy, into a 10GW green hydrogen production facility in the Brazilian state of Piaui.

It forms part of a €2 billion ($2.2 billion) package to build up the country’s hydrogen value chain and will result in clean hydrogen and ammonia being shipped to Croatia, and then distributed among southeastern European offtakers.

“All of this shows more than ever that the EU is not only a clean hydrogen pioneer but a partner to build a worldwide hydrogen market,” added von der Leyen.

President von der Leyen also stated her intention to evaluate national hydrogen strategies and their implementation to ensure they can collectively meet the EU targets.