BRUSSELS, Nov. 20 (Xinhua) -- The second round of auctions of subsidies under the European Hydrogen Bank is to be launched in the spring of 2024, European Commission President Ursula von der Leyen said here on Monday.
During her virtual address at European Hydrogen Week, which began on Monday and will conclude on Friday, von der Leyen revealed that the second round of auctions of hydrogen subsidies will carry a total value of 3 billion euros (3.3 billion U.S. dollars).
The European Hydrogen Bank, announced by von der Leyen in 2022, is poised to initiate its inaugural 800-million-euro auction for bids on Nov. 23. The pilot auction will provide winning hydrogen producers with a "fixed premium" of up to 4.5 euros per kg of hydrogen for a maximum operational period of 10 years.
The goal of this strategy is to narrow the cost differential within the European Union (EU) between renewable and fossil hydrogen, and bring down capital costs.
The EU views hydrogen as an integral component in the decarbonization of European industry, aligning with the bloc's 2030 climate targets and the ultimate goal of climate neutrality by 2050. The bloc is aiming for the domestic production of 10 million tons of renewable hydrogen, and 10 million tons of imported renewable hydrogen, by 2030. ■