The European Hydrogen Bank (EHB) is an initiative of the European Commission established in 2023 with the aim to support among other things the EU domestic renewable hydrogen production. At EGEN, we are dedicated to navigating the European Hydrogen Bank Auction application process to ensure your project stands out and meets all essential criteria. The next auction round will open on 3 December 2024. In this article we will give you three tips to achieve a successful proposal.
1. Assess your project’s suitability and develop an early application strategy
Our journey begins with a thorough assessment of your hydrogen project’s suitability for the European Hydrogen Bank Auction. We evaluate how well your project aligns with the Bank’s objectives and develop a tailored application strategy. This strategic approach focuses on highlighting your project’s unique strengths and planning the most effective way to meet the submission criteria.
2. Underpin your project’s technical, financial, and operational maturity
On 27 September 2024, the Commission published the final Terms and Conditions (T&Cs) for its second auction. One of the new requirements is a feasibility study, which is a stand-alone mandatory document that should contribute to assess the maturity of the project at the moment of application. To secure funding, your project must demonstrate maturity across technical, financial, and operational dimensions:
- technical maturity: We support you in finalizing your electrolyser procurement strategy, and ensure the alignment with the required resilience criteria for the electrolyser. New requirements for 2024 concern the origin of electrolysers, the compliance with safety standard ISO 22734:2019 and a preparation of a cybersecurity plan. We guarantee that your renewable electricity sourcing strategy is robust and that pre-contractual steps are taken to secure the necessary volumes of renewable electricity.
- financial maturity: Our team assists you in developing a sound and credible business plan, ensuring consistency across all financial documentation. Your project must reach financial close within 2.5 years and entry into operation within 5 years from grant agreement signature. We assess the off-take and price hedging strategies to mitigate risks related to electricity supply and price fluctuations.
- operational maturity: We showcase the competence and experience of your project team, emphasizing the operational resources available or planned to be acquired. This highlights your team’s capability to successfully implement the project.
3. Define a winning bidding strategy supported by our data-driven intelligence
A well-defined bidding strategy is crucial for success, as it is the main ranking criteria for the auction. EGEN provides you the necessary insights for a successful bidding strategy via the EHB Intelligence report which is updated for each call. EGEN’s intelligence report will give you clear and easy-to-understand strategic insights on the specific auction round that will help you make an assumption-based bidding decision that is not only low enough to be successful, but also as high as your project’s boundaries allow, so you can take the most out of your participation in the auction.
Make your EHB project a success!
Throughout the entire process, EGEN offers continuous support and expert consultation. We promptly address any feedback or additional requirements from the European Hydrogen Bank – such as the mandatory feasibility study – ensuring your proposal remains competitive and compelling. The next auction round will open on 3 December 2024. What are you waiting for?
