BREAKING | EU launches third European Hydrogen Bank auction, with budget of €1.3bn

10 12 2025 | 05:02Rachel Parkes / HYDROGEN INSIGHT

Funds set to be topped up by a further €1.7bn from Germany and Spain via the EU’s auctions-as-a-service programme

The EU has today (Thursday) launched the third call of its European Hydrogen Bank auction, furnished with €1.3bn ($1.51bn) of funding.

For the first time, the cash will be used to subsidise both the production of renewable fuels of non-biological origin (RFNBOs) — the EU’s term for green hydrogen and its derivatives — and non-RFNBO-compliant electrolytic hydrogen.

Funds will be allocated across three separate baskets, one for RFNBO production only, one general basket that incorporates both RFNBO and low-carbon electrolytic hydrogen production, and one for RFNBO and low-carbon electrolytic hydrogen where the end use is in the maritime or aviation sectors.

The budget is slightly higher than the €1.1bn expected due to a €200m increase in funds for the RFNBO-only basket, which has been raised to €600m, from the €400m originally earmarked when the terms were first announced in July.

The general basket for RFNBO and low-carbon electrolytic hydrogen has been allocated €400m as planned, while the maritime and aviation basket has been allocated the full amount of €300m.

 

The funds will also be topped up with a further €415m from Spain, announced yesterday, and a planned €1.3bn from Germany, under the European Hydrogen Bank’s auctions-as-a-service programme.

This cash will be allocated to eligible projects located within their respective borders that miss out on funding from the main EU pot.

The European Hydrogen Bank will offer a “fixed premium” per kg of hydrogen produced for ten years, in an effort to underpin green hydrogen project economics and bring them to final investment decision (FID).

As in the previous auction, the ceiling price has been set at €4/kg ($4.67/kg), however in reality bids have historically cleared at a fraction of that price — typically below €1/kg, with the highest so far at €1.88/kg.

Cover photo:  Ursula von der Leyen, European Commission presidentPhoto: Lukasz Kobus/European Commission Audiovisual Service

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