BAKU: The European Commission has doled out nearly 720 million euros to seven renewable hydrogen projects across Europe, chosen through the inaugural competitive bidding process of the European Hydrogen Bank, Trend reports.

These victorious contenders will churn out renewable hydrogen within Europe and snag subsidies to narrow the cost gap between their production expenses and the prevailing market price dominated by non-renewable producers, stated the Commission. They highlighted that this renewable hydrogen will find utility in various sectors like steel, chemicals, maritime transport, and fertilizers.

Collectively, the winning projects aim to yield 1.58 million tons of renewable hydrogen over the span of a decade, averting over 10 million tonnes of CO2 emissions, as disclosed by the Commission.

The selected projects will now embark on crafting their respective grant agreements with the European Climate, Infrastructure, and Environment Executive Agency (CINEA), with the aim to seal them by November 2024
at the latest.

As per the Commission’s directives, the projects must commence renewable hydrogen production within a maximum of five years post-signing of the grant agreement. They’ll receive the fixed premium subsidy awarded for up to a decade for certified and verified renewable hydrogen production.

Funds for this auction stem from the proceeds of the EU Emissions Trading System, with the Commission gearing up to kick off a second European Hydrogen Bank auction by the close of 2024.

Source: Trend News Agency