IF26 Hydrogen Auction: European Commission prepares new hydrogen auction
The European Commission has published the first guidelines for the Innovation Fund 2026 Hydrogen Auction (IF26 Hydrogen Auction). The fourth European hydrogen auction will have a budget of up to € 500 million and is scheduled to launch at the end of 2026. The draft Terms & Conditions are currently open for consultation, allowing stakeholders to provide feedback.
If your organisation is investing in renewable hydrogen, this provides an early insight into the next Innovation Fund funding round. Although the European Commission has not yet confirmed the final conditions, you can already start preparing your project.
Fourth Innovation Fund Hydrogen Auction (IF26) to open in 2026
The IF26 Hydrogen Auction builds on previous hydrogen auctions under the Innovation Fund. The European Commission uses this auction mechanism to accelerate the scale-up of renewable hydrogen production and encourage investment in large-scale electrolysis projects.
According to the current planning, the call will open in December 2026 with a budget of up to € 500 million, funded through revenues from the EU Emissions Trading System (EU ETS).
Consultation on the draft Terms & Conditions now open
On 9 July 2026, the European Commission published the draft Terms & Conditions for the IF26 Hydrogen Auction. Market participants, industry associations and other stakeholders are now invited to provide feedback. The consultation will remain open until 24 August 2026.
The European Commission will use the feedback received to finalise the conditions of the scheme. As a result, the draft Terms & Conditions may still change before the official call is published.
What is the difference between the regular Innovation Fund calls and the IF Hydrogen Auction?
The main difference between the regular Innovation Fund calls and the IF Hydrogen Auction lies in how the European Commission evaluates projects. For the regular Innovation Fund calls, the European Commission assesses projects against a range of criteria, with projects competing on their overall quality. The IF26 Hydrogen Auction follows a competitive bidding process. In addition to submitting project information, applicants must specify a bid price per kilogram of renewable hydrogen produced. This bid reflects the level of grant funding required to make the project financially viable. Projects with the lowest bids receive grant support first until the available budget has been allocated.
Building on previous successful auctions
The new auction follows the IF25 Hydrogen Auction, for which the European Commission previously allocated € 1.3 billion. Interest in the scheme was high. In May 2026, the European Commission selected nine projects across seven European countries for implementation. Together, these projects represent almost 1.1 GW of electrolysis capacity and could produce more than 1.3 million tonnes of renewable hydrogen during their first ten years of operation.
With the IF26 Hydrogen Auction, the European Commission continues this approach, although the available budget is lower than in the previous round.
Prepare your hydrogen project in time
Although the European Commission has yet to publish the final conditions, the consultation already offers valuable insight into the expected structure of the scheme. Organisations developing large-scale renewable hydrogen production projects should closely follow the latest developments and begin preparing their applications as early as possible.
Our specialists are closely monitoring the further development of the IF26 Hydrogen Auction. As soon as the final conditions and the official opening of the call are announced, we will keep you informed and support you in preparing a strong application. Would you like to discuss your project? Please contact us via info@hezelburcht.com, call 088 495 20 00 or fill in our contact form.
