We use cookies
To help provide you with a good experience on our website. By continuing to browse the website, you are agreeing to our use of cookies.

Aurora expects the European Hydrogen Bank auction to support 540 MW of renewable hydrogen projects in Europe

GO HYDROGEN

Aurora expects the European Hydrogen Bank auction to support 540 MW of renewable hydrogen projects in Europe

Renewable hydrogen faces stiff competition from fossil fuels. To make it economically viable, subsidies are required. - Aurora

In 2023, Denmark and the UK held their first renewable hydrogen auctions. The Danish auction resulted in a fixed premium support with a price ceiling of 1.2€/kg, while the UK’s auction (HAR1) recently announced a strike price of 11.1€/kg under the same fixed premium support. The difference in clearing price can be attributed to Denmark’s lower power prices and lower grid carbon intensity, allowing simpler and cheaper power procurement strategies while still meeting the low carbon compliance regulations.  

The EU Commission also launched its first Europe-wide H2 auction with a fixed premium per kilogram of hydrogen produced to bridge the gap between production costs and the price consumers are currently willing to pay. The auction has an initial budget of €800 million, with a bid cap of 4.5 €/kg.  

Aurora Energy Research analysed projects from its electrolyser database to understand potential outcomes for the European Hydrogen Bank auction. Aurora expects the auction to support 540 MW of renewable hydrogen projects across Norway, Spain, Portugal, Germany, and the Netherlands. However, uncertainties around the emerging hydrogen market result in a wide range of bidding behaviour. On the one hand, prices could undergo an upward pressure caused by baseload hydrogen supply with higher project costs and lower risk appetite. Contrarily, prices could be brought down due to higher offtake prices and the participation of already profitable projects. 

To learn more about how we at Aurora can help you tackle the hydrogen market, contact Alex - alex.hutcheson@auroraer.com

Relevant news

GO HYDROGEN
px Group acquires German hydrogen specialists, LIFTE H2
LIFTE H2 is committed to driving Europe’s green transition by engineering and delivering simple, safe and affordable hydrogen infrastructure solutions.
HYDROGEN IN CENTRAL ASIA AND CASPIAN
Clyde Hydrogen raises £1 million to innovate hydrogen energy sector
Clyde Hydrogen Systems has completed a £1 million pre-seed funding round, marking a significant milestone in its mission to revolutionise the hydrogen energy sector.
GO HYDROGEN
GES and Provaris to develop new hydrogen import facility at Port of Rotterdam
Global Energy Storage and Provaris Energy have entered a collaboration agreement to develop a gaseous hydrogen import facility at the GES terminal in Rotterdam.
GO HYDROGEN
Shell and Verdagy to collaborate on renewable Hydrogen projects
Shell to Endorse Verdagy Renewable Hydrogen Electrolyzers After Successful, Year-Long, Completion of Detailed Technology, Design and Safety Reviews.
HYDROGEN IN CENTRAL ASIA AND CASPIAN
JGC Secures FEED Study from ENEOS and Sumitomo for Major Hydrogen Project in Malaysia
JGC Corporation has been awarded the Front End Engineering Design for a green hydrogen and methylcyclohexane.
GO HYDROGEN
RWE's wilton green hydrogen project gains momentum in advancing sustainable energy solutions
RWE is progressing with plans for a green hydrogen plant, in one of its core development areas Teesside.