{"id":6724,"date":"2024-01-10T13:25:48","date_gmt":"2024-01-10T12:25:48","guid":{"rendered":"https:\/\/goodnewenergy.enagas.es\/?p=6724"},"modified":"2024-06-11T11:13:23","modified_gmt":"2024-06-11T09:13:23","slug":"european-hydrogen-bank","status":"publish","type":"post","link":"https:\/\/goodnewenergy.enagas.es\/en\/innovative\/european-hydrogen-bank\/","title":{"rendered":"How does the European Hydrogen Bank work?"},"content":{"rendered":"

The European Hydrogen Bank is a Brussels initiative created to promote the renewable hydrogen market in the European Union<\/strong>. Its main objectives are: to incentivise EU production of this type of energy through auctions that cover the cost difference between renewable hydrogen and the fossil fuels it is set to replace, to efficiently connect supply with demand and to facilitate imports from third countries.<\/p>\n

When European Commission President Ursula Von der Leyen announced the creation of the European hydrogen bank <\/strong>in September 2022, she<\/strong> clearly outlined the role of hydrogen in the plans for decarbonisation<\/strong>. \u201cHydrogen can be a game changer for Europe<\/a>. We need to move our hydrogen economy from niche to scale\u201d, she explained at the time.<\/p>\n

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The European Union has set a target to reduce greenhouse gas emissions by at least 55% by 2030<\/p>\n<\/blockquote>\n

A little over a year after those words were spoken, the bank is now up and running. And one of its first operations has been the launch of a pilot auction worth 800 million euros aimed at those projects capable of innovating hydrogen production at a competitive cost<\/strong>. The intention is that such funding will serve to reduce the potential gap between the price of the production of hydrogen and the market rate. A second round of auctions is planned for the spring of 2024 to reach a total value of three billion euros in investment.<\/p>\n

Goals of the European Hydrogen Bank<\/strong><\/h2>\n

The European Union has a target to reduce greenhouse gas emissions<\/a> <\/span>by at least 55% by 2030 compared to 1990 levels and to achieve climate neutrality by 2050, i.e. net zero greenhouse gas emissions. To achieve this, renewable hydrogen will be key, as the EU aims to have 20 million tonnes per year by 2030<\/strong>, of which 10 million tonnes will be produced and 10 million tonnes will be imported.<\/p>\n

Although the EU is the leading region in terms of electrolysis equipment manufacturing and installed capacity, it needs to scale up its hydrogen production model to reduce fossil fuel energy consumption<\/strong>, increase energy independence and meet the needs of sectors that are difficult to electrify, such as industry and heavy transport, for example.<\/p>\n

Therefore, the creation and implementation of the European Hydrogen Bank is crucial to incentivise private investment in the different renewable hydrogen value chains<\/strong>, as well as to solve potential teething problems in the market, such as matching supply and demand. In this respect, the approved \u201cDecarbonisation Package for Gas and Hydrogen Markets\u201d foresees a five-year pilot project to reconcile hydrogen supply and demand and create market transparency, linked to the European Hydrogen Bank.<\/p>\n

The 4 pillars of the European Hydrogen Bank:<\/strong><\/h2>\n