Nine hydrogen projects have been selected for over €1bn ($1.18bn) of funding under the third European Hydrogen Bank auction.

With a budget of €1.3 billion raised from the auctioning of EU Emissions Trading System (EU ETS) allowances, the IF25 Hydrogen Auction was conceptualised to support the production of renewable fuels of non-biological origin (RFNBO) hydrogen and also, for the first time, electrolytic low-carbon hydrogen. The auction also included a new topic for suppliers of hydrogen to maritime or aviation off takers.

The selected projects represent 1.1GW of capacity and include five under the RFNBO General umbrella, and two under the RFNBO Lowcarb topic. Two Norwegian developments grouped under the Maritime-Aviation topic secured the most generous incentives.

The funding will last for the first 10 years of the projects’ operations. The expectation is that over 1.3 million tonnes of hydrogen will be produced.

The projects will now begin the Grant Agreement Preparation process. Grant agreements are expected to be signed with the European Climate, Infrastructure, and Environmental Executive Agency (CINEA) by Q4 2026.

Projects will need to reach final investment decision within two and a half years and enter into operation within five years of signing the grant agreement.