Belgium – The European Commission has launched the first auction under the European Hydrogen Bank to support the production of renewable hydrogen in Europe, with an initial €800 million of emissions trading revenues.
The auction is designed to bridge the gap between the cost of producing renewable hydrogen and the price consumers are currently willing to pay, thereby incentivizing the production of this clean energy source.
Renewable hydrogen is produced using electrolysis, which separates water molecules into hydrogen and oxygen using electricity from renewable sources. This process generates zero emissions and has the potential to significantly reduce the carbon footprint of various industries, including heavy industry and transport.
Renewable hydrogen boost
The successful implementation of this auction has the potential to accelerate the development of the renewable hydrogen industry in Europe. The launch of the first auction under the European Hydrogen Bank marks a significant step forward in the European Union’s efforts to decarbonize its energy sector. By supporting the production of renewable hydrogen, the auction has the potential to play a key role in achieving the REPowerEU Plan’s ambitious goals and transitioning to a more sustainable energy future.
