• European Hydrogen Bank’s third auction expands to include non-RFNBO low-carbon hydrogen with €1.3bn ($1.5bn) in support available
• New safeguards introduced to prevent high dropout rates and address regional funding imbalances seen in previous rounds

The European Commission has launched its third European Hydrogen Bank auction with a €1.3 billion ($1.5 billion) budget, now open to both renewable RFNBO hydrogen and non-renewable low-carbon electrolytic hydrogen for the first time. The inclusion of low-carbon molecules—those achieving at least 70% emissions reductions compared to fossil hydrogen (28.2gCO₂eq/MJ)—follows the adoption of the Low-Carbon Fuels Delegated Act in October, and aims to level the playing field for regions with limited renewables access.

The auction is split across three segments: exclusively RFNBO hydrogen; a combined RFNBO and/or low-carbon category; and a sector-specific tranche for maritime and aviation offtakers. Bids will compete on a per-kilo fixed premium basis, capped at €4/kg ($4.58/kg), with funding awarded for a ten-year period following verified production. Applications are open until February 19, 2026, with winners expected to sign grant agreements within nine months. The EU has also launched a €1 billion ($1.17 billion) auction for decarbonizing industrial process heat and a €2.9 billion ($3.38 billion) call under the Net-Zero Technologies window, bringing the total available under the Innovation Fund to €5.2 billion ($6.07 billion).

But Brussels is also taking steps to plug the credibility gaps that plagued earlier rounds. In the second auction, nearly half the selected winners withdrew, triggering the activation of reserve projects. This third round introduces stricter pre-qualification criteria, including infrastructure readiness, permitting status, and “stronger financial commitments,” according to the Commission. Developers will also remain subject to an 8% completion guarantee if they fail to deliver. Officials hope these measures, coupled with the eligibility expansion to low-carbon hydrogen, will improve project diversity and reduce the regional concentration seen in prior rounds—where cheap renewables in southern Europe and the Nordics dominated award outcomes.

Source:   Hydrogencentral