Germany becomes first EU member state to adopt “Auctions-as-a-Service”


Germany – Germany is set to spearhead the European Union’s push towards sustainable and clean energy financing. The collaboration involves Germany as the first Member State to engage in the EU’s innovative “Auctions-as-a-Service” scheme, a significant step in advancing hydrogen production across the continent.

The primary objective of this initiative is to accelerate the production of renewable hydrogen in line with key EU strategies, including the REPowerEU Plan, the Green Deal Industrial Plan, and the Renewable Energy Directive. Germany’s commitment to allocate €350 million from its national budget supplements the €800 million designated for European projects from the EU Innovation Fund. The overarching goal is to attract and fund a broader range of renewable hydrogen projects across Member States.

Competitive bidding

The heart of this scheme lies in the competitive bidding process. The European Hydrogen Bank, established by the EU, facilitates auctions to support renewable hydrogen production. It covers the financial gap between the cost of producing renewable hydrogen and the market price, determined through competitive bids. Producers with the lowest support requirements, expressed in euros per kilo of hydrogen produced, emerge victorious. The technology involved centers around incentivizing cost-effective and competitive renewable hydrogen projects.

Germany’s substantial financial contribution has the potential to significantly impact the landscape of European hydrogen production. By making €350 million available, Germany not only supports domestic projects but also encourages a more extensive collaboration among Member States. The initiative aims to propel the region towards achieving renewable hydrogen targets, fostering a cleaner and more sustainable energy future.