Through the Innovation Fund Hydrogen Auction, the European Commission supports the production of renewable and low-carbon hydrogen through electrolysis in Europe. The auction is the European Hydrogen Bank’s main instrument. Producers receive a fixed premium for every kilogram of hydrogen they produce. This narrows the price gap between green hydrogen and fossil alternatives and makes investments in large-scale electrolysis more viable. Is your organisation developing an electrolysis project? Then the Hydrogen Auction could play a key role in your business case.

IF26 Hydrogen Auction

The IF26 Hydrogen Auction is the fourth auction of the European Hydrogen Bank. The auction is expected to open in December 2026 and close in February 2027. The budget for this round is up to € 500 million: around € 350 million for topic 1 (renewable hydrogen) and around € 150 million for topic 2 (renewable and/or low-carbon electrolytic hydrogen).

What is the European Hydrogen Bank?

The European Hydrogen Bank is a European Commission initiative to kick-start the market for renewable hydrogen in Europe. The auctions are funded by the Innovation Fund, which draws its resources from the EU Emissions Trading System (EU ETS). The Commission generally holds the auction once a year, as part of the Innovation Fund calls.

Who is the Innovation Fund Hydrogen Auction for?

The Hydrogen Auction is intended for developers of projects that will produce renewable or low-carbon hydrogen through electrolysis. The support helps bridge the price gap with fossil-based hydrogen, so that projects can reach a final investment decision sooner.

Who can submit a bid?

Companies that develop and operate an electrolysis project, such as energy companies, industrial hydrogen users and project developers, either on their own or together with partners. The electrolyser must be located in the European Economic Area.

Projects within two topics are eligible

The auction is divided into two topics, each with its own budget:

• Topic 1 is reserved for renewable hydrogen (RFNBO): hydrogen produced with renewable electricity that meets strict European requirements. Within this topic, the maximum support per project is € 175 million.
• Topic 2 is also open to low-carbon hydrogen produced through electrolysis, for example using electricity from nuclear power. Within this topic, the maximum support per project is € 150 million.

What has changed compared with previous auctions?

• Two topics: alongside renewable (RFNBO) hydrogen, there is now also room for low-carbon electrolytic hydrogen.
• No separate maritime and aviation window: this was included in the previous auction, but maritime projects now have their own Innovation Fund Maritime call.

How does the Hydrogen Auction work?

The Hydrogen Auction works differently from the regular Innovation Fund calls. Whereas the Net-Zero Technologies call assesses projects on criteria such as innovation and maturity, the auction is primarily about price:

• You submit a bid: the premium per kilogram of hydrogen you need to make your project viable.
• Projects that meet the conditions are ranked by bid price. The lowest bids receive support first, until the budget has been allocated.
• Selected projects receive their premium for up to ten years, based on the volume of hydrogen actually produced and certified.

A sharp, well-substantiated bid is therefore crucial. Bid too high and you will not be selected. Bid too low and you put the financial viability of your project at risk.

Auctions-as-a-Service: additional national support

Through Auctions-as-a-Service, EEA countries can use their own funds through the European auction mechanism. Projects that just miss out on European selection can then still receive national support, provided they are located in that country or supply hydrogen to it. Whether your country participates, and under which conditions, varies from round to round.

Support from Hezelburcht

Hezelburcht has supported organisations with their Innovation Fund applications since the programme was launched in 2020. We know the rules of the Hydrogen Auction and how it fits with other funding and financing instruments for hydrogen.

We can help you at every stage:

• an initial check of whether your project meets the auction conditions;
• developing a realistic and competitive bidding strategy;
• substantiating RFNBO compliance and the project schedule;
• preparing and submitting a complete and correct application;
• meeting your obligations once support has been awarded, including reporting and certification.

Contact our Innovation Fund specialists

If you are focusing on hydrogen and electrolysis, the IF Hydrogen Auction is an excellent opportunity for your organisation. However, it requires careful preparation and the right bidding strategy to maximise your chances of success. Start your preparations early to maximise your chances. Contact us via info@hezelburcht.com or 088 495 20 00 to schedule a meeting. Our specialists are happy to assist!