Brussels: The European Commission has selected nine hydrogen production projects under the third auction of the European Hydrogen Bank (EHB).

According to Emirates News Agency, these projects span seven countries within the European Economic Area and are anticipated to deliver nearly 1.1 gigawatts of electrolyser capacity. Over their initial decade of operation, they aim to produce more than 1.3 million tonnes of hydrogen, with a projected avoidance of 9 million tonnes of CO2 equivalent in greenhouse gas emissions.

The selected projects will benefit from approximately £1.09 billion in EU funding, sourced from the Innovation Fund under the EU Emissions Trading System (ETS). This initiative intends to curtail emissions in energy-intensive sectors such as transport and chemicals by utilizing the produced hydrogen.

The ventures are forecasted to bolster Europe's industrial leadership, enhance long-term competitiveness, create jobs, and contribute to the EU's clean transition, energy independence, and security.

The auction provides successful projects with a subsidy to bridge the gap between production costs and market prices. This strategy aims to stimulate clean hydrogen production and utilization. Upon finalizing their grant agreements, the nine chosen projects will receive a fixed premium ranging from £0.57 to £3.49 per kilogram of certified and verified hydrogen produced, for up to 10 years.