Skip to main content

European Hydrogen Bank launches first H2 pilot auction call

Grants, Credits & Incentives Alert

On 23 November 2023, the European Union launched the first auction for renewable fuel of non-biological origin (RFNBO) hydrogen production under the umbrella of the Innovation Fund, via the European Hydrogen Bank. A EUR 800 million budget is available for bidders (project developers) in this first pilot auction.

The call document and the relevant application forms and templates have been published on the European Commission’s Funding and Tenders portal.

The deadline for the submission of bids is 8 February 2024, and the evaluation results are expected at the earliest by April 2024.


Key terms and conditions

Admissibility, eligibility, and quality criteria
  • New electrolyser capacity of a minimum of 5 MWe (megawatt electrical) to be installed in a single location;
  • Green power, meeting strict CO2 (carbon dioxide) emissions guidelines, and potentially applying the additionality principle;
  • The hydrogen produced must result from a process that achieves at least a 70% reduction in greenhouse gas emissions compared to the reference amount;
  • Technical, financial, and operational maturity are key;
  • Projects must be linked with production located in the European Economic Area;
  • The auctioned good is RFNBO hydrogen;
  • A ceiling price for the bids of EUR 4.5 per kilogram of hydrogen produced; 
  • Latest entry into operation five years after signature of the grant agreement; and 
  • A completion guarantee of 4% of the grant.


Evaluation and award procedure

The proposals will need to satisfy all criteria to allow their bid to be ranked. Funding will be awarded based on bid price, from the lowest to the highest bids, for up to 10 years of operation, until the call budget is exhausted. The bid price is a fixed premium per kilogram of RFNBO hydrogen, without indexation and will be paid every six months.


Continuation of the European Hydrogen Bank

On 20 November 2023, the President of the European Commission, Ursula von der Leyen, announced the launch of the second round of the auction, reaching a total value of EUR 3 billion. This call is expected in spring 2024.


How can we assist?

If you are looking for opportunities to fund your project, Deloitte Belgium’s experienced Gi³ team can provide complete assistance on:

  • Compliance assessment of projects against auction requirements;
  • Assistance with levelised cost calculation/analysis of hydrogen (H2) and strategic options for bidding price points; and
  • Project outlining, detailed viability analysis, and drafting of the application file.

Do not hesitate to reach out to the contacts below for further information