EU Launches Hydrogen Bank

The European Commission wants to lower hydrogen prices by subsidizing production, paying a part of the bill for every kilogram of hydrogen produced.  To this end, on March 16, 2023, it launched the European Hydrogen Bank as part of the Critical Raw Material Act and the Net Zero Industry Act. 

To reduce the cost gap in the EU between renewable and fossil hydrogen and bring capital costs down, the Commission is designing pilot auctions for renewable hydrogen production. These auctions will award subsidies to hydrogen producers in the form of a fixed premium per kilogram of hydrogen produced for a maximum of 10 years of operation. The Commission has allocated €800 million for the first European Hydrogen Bank auction slated to launch under the EU Innovation Fund in the autumn of 2023.

The Commission is also exploring how to leverage the European Hydrogen Bank to promote a coordinated EU strategy for renewable hydrogen imports. It proposes to offer a green premium for renewable hydrogen imports via a similar auction system as used for the domestic market. 

For more information, please see the website for the European Hydrogen Bank. 

For U.S. companies looking to connect with opportunities in Belgium, contact Commercial Specialist Karel Vantomme at the U.S. Commercial Service – Belgium.