Frontier has supported the application process for project sponsors who have secured funding in this second auction of the EU Hydrogen bank. 

The auction is part of the EU’s Innovation Fund – one of the world’s largest funding programmes for clean technologies. The EU Hydrogen Bank aims to unlock investments and promote the ramp-up of the hydrogen economy by offering fixed premium payments per kilogram of renewable hydrogen produced during the first ten years of operation.   

The EU Hydrogen Bank auction is designed as a competitive bidding process. A fixed total budget is made available, and project developers submit bids indicating the premium (in €/kg) they would need to produce hydrogen that complies with EU conditions for Renewable Fuels of Non-Biological Origin (RFNBO), i.e. with an electrolyser using electricity from renewable sources. Bids are ranked from lowest to highest (“merit order”), and the projects with the lowest bid prices are awarded funding until total budget is exhausted. This approach ensures cost-effective allocation of public funds. 

In this second auction, a total of €992m has been awarded to fifteen successful projects across the European Economic Area (EEA). Key outcomes from the second auction include: 

• The selected projects are located across five countries: Spain, Finland, Germany, Netherlands and Norway. 

• Together, these projects are expected to produce nearly 2.2m tonnes of renewable hydrogen over ten years, avoiding over 15m tonnes of CO₂ emissions. 

• Awarded projects are expected to receive between €8m and €245m of funding, depending on size and submitted bid.  

• The auction featured a general topic bucket and a dedicated budget for hydrogen producers with off-takers in the maritime sector. The twelve general topic projects will receive fixed premiums between €0.20 and €0.60 per kilogram of renewable hydrogen, while three maritime projects secured funding with premiums ranging from €0.45 to €1.88 per kilogram. 

Selected projects are now invited to prepare grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA), with signatures expected by September or October 2025. However, as with previous rounds, not all selected projects may proceed to final contract. 

A third auction under the EU Hydrogen Bank is already planned for the end of 2025, with a proposed budget of up to €1bn under the Clean Industrial Deal.  

Reach out to our team to discuss how we can support your project development and application process for the upcoming auction round.