09 May 2024 | 04:05 UTC — Insight Blog
EU’s Hydrogen Bank auction clears below 50 euro cent/kg, funding 1.5 GW
Featuring Staff and Eric Yep
The first auction under the European Hydrogen Bank mechanism has cleared well below expectations, with the seven winning projects bidding at 37-48 euro cent/kg (40-51 cents/kg) for a total 1.5 GW of electrolysis.
The EU will provide Eur720 million to the projects, which will produce 1.58 million mt of green hydrogen over 10 years, the European Commission said.
The subsidy amounts range from Eur8 million to Eur245 million, with two 500-MW projects -- Renato Ptx's Catalina project in Spain and MadoquaPower2X's project in Portugal -- taking the bulk. The EC had set a price ceiling for the inaugural auction of Eur4.50/kg.
"The results of our first EU-wide auction for renewable hydrogen production are very encouraging," European Commissioner for Climate Action Wopke Hoekstra said in the statement. "These innovative auctions, funded by the revenues from emissions trading, are a game-changer when it comes to producing renewable hydrogen in Europe."
Editor’s pick
Japan set for world's first transport of liquefied CO2
Japan is set to start what will be the world's first CO2 transport on a low-temperature and low-pressure liquefied carrier over 1,000 km in a series of trial voyages, expected to play a key role in the country achieving its carbon neutrality goal by 2050. The trial voyage of the EXCOOL, operated by Nippon Gas Line, is due in early October from Kansai Electric's 1.8-GW Maizuru coal-fired power plant in Kyoto prefecture to a Tomakomai terminal in Hokkaido.
Biden administration unveils updated SAF tax credit model, provides ethanol clarity
The Biden administration released updated modeling for sustainable aviation fuel subsidies April 30, giving corn ethanol producers a chance of qualifying for an Inflation Reduction Act tax credit provided they can adopt three agricultural practices to reduce emissions. The updated guidance gave ethanol producers "important clarity" on the requirements to qualify for the IRA's 40B tax credit, senior White House advisor John Podesta said.
Green premium remains for renewable hydrogen after EU's 1.5-GW auction result
The low clearing price for the EU's inaugural European Hydrogen Bank auction, with funding for 1.5 GW of electrolysis across seven successful projects, shows a willingness to pay a "green premium" by offtakers, industry representatives said.
South Korea to provide subsidies to hydrogen refueling stations
South Korea will provide Won 8.2 billion ($6 million) in subsidies to hydrogen refueling stations where 152 private stations will receive an average of Won 54 million each for fuel purchases. The move is designed to help improve hydrogen refueling stations’ operating conditions and encourage the private sector to join the hydrogen ecosystem.
California hydrogen pump price for mobility sector declines, still highest globally
Platts California hydrogen pump price was assessed 1% lower on the month at $32.38/kg May 1, maintaining its position as the highest hydrogen pump price across the globe. As an early adopter of low-carbon hydrogen for transport, the hydrogen fuel cell vehicle market in California has faced challenges with elevated hydrogen fuel prices at the pump and availability of reliable fueling infrastructure.
Learn more about S&P Global Commodity Insights Energy Transition Services