“We’re doing it for innovation, for our energy transition. And we are doing it for and with companies”, said the European Commissioner for Climate Action, Wopke Hoekstra, at the launch of the European Hydrogen Bank’s first auction on Thursday 23 November (see EUROPE 13299/38).
This initiative marks a decisive turning point in support for the production of renewable hydrogen in Europe, with the aim of strengthening the continent’s energy autonomy and reducing its dependence on fossil fuels.
In a tense geopolitical context, exacerbated by the war in Ukraine and instability in the Middle East, Mr Hoekstra stressed the importance of hydrogen as a link between climate policy and security.
With a budget of 800 million euros, this auction offers a fixed premium for ten years for projects capable of producing renewable hydrogen in less than five years, thereby encouraging competitiveness and efficiency. The emphasis is on cost competitiveness, with a “green premium” calculated on the difference between the cost of production and the market price.
Commissioner Hoekstra also highlighted the solid foundation of the European clean technology market, reinforced by binding climate targets enshrined in law.
He cited the European Emissions Trading Scheme (‘EU ETS’) as a key success, recalling its role in stimulating innovation and business investment in clean solutions. “Emissions trading generates (...) revenue (...). These are the same revenues that finance today’s auctions”, he explained.
In addition, the auction was presented as a modest but significant step forward, based on a solid market model. It is envisaged as a test case for the Auctions-as-a-Service model, enabling synergy between Commission and Member State funding to support effective projects. (Original version in French by Nithya Paquiry)