Auctions will start later this year
EU evaluates hydrogen auction options
A number of different options for design are being evaluated by the Commission following the closure of its consultation
The European Commission is investigating various mechanisms for its pilot hydrogen auctions to be held later this year. The EU’s executive body recently closed a consultation on the design of the scheme and will announce the details in June. The first pilot auction, with a budget of €800mn ($855mn), is due to be held before the end of 2023. The Commission says the scheme will have a similar impact as the production tax credit offered under the US Inflation Reduction Act, providing hydrogen suppliers with a fixed price that they will be paid to produce a kilogram of hydrogen. The mechanism will be targeted at purchasing domestic EU hydrogen with funds from the EU Emissions Trading System (ETS
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