The European Commission has unveiled its Green Deal Industrial plan, with intentions to offer green hydrogen producers a subsidy programme.
Launched on Wednesday (February 1), the plan is expected to launch the first series of competitive bids this autumn, amounting to €800m and will offer a “fixed premium” per kg of green hydrogen, subsidising domestic EU production over a 10 year period, from the EU’s €36bn Innovation Fund.
The Commission said, “This will have a similar impact as the production tax credit in the US IRA (Inflation Reduction Act),” however added by offering the support via auction, it will make EU support “cost-effective, fast and administratively light.”
H2 View understands the Commission intends to follow up the pilot auction with other bidding rounds or other forms of support for hydrogen production to contribute towards the REPowerEU hydrogen targets of producing 10 million tonnes of renewable hydrogen annually by 2030, which it says will cover the “EU domestic part of the European Bank.
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