Germany did not cut funding for EU hydrogen AaaS mechanism
Germany has not cancelled funding for the "Auctions-as-a-Service" initiative under the European Hydrogen Bank (EHB) but will continue discussions with the European Commission to secure further improvements for German companies in future tender rounds, a spokesperson for the federal economy ministry (BMWK) told Renewables Now.In December 2023, Germany became the first country to allocate EUR 350 million (USD 368.1m) in funding for the initiative from its budget to support green hydrogen generation within its borders. However, not a single German project could be funded under this mechanism following the first EU hydrogen auction."The first round of tenders provided us with valuable insights into the tender design and the market situation. However, none of the German projects could be funded through the pilot tender or 'Auction as a service.' From our perspective, the pilot round highlighted a clear need for revisions in the tender design. The BMWK has worked intensively to advocate for improved tender conditions", the spokesperson said.The ministry welcomed the fact that the European Commission has revised the tender conditions for the second round and introduced important improvements. "We will continue our discussions with the European Commission to secure further enhancements for German companies in future tender rounds," the spokesperson added.The ministry confirmed that the funds have not been cancelled. "We fundamentally consider such tenders to be a key element in the hydrogen ramp-up, which is why we have successfully implemented the German H2Global auction model through the BMWK over the past two years," the spokesperson said.The second auction under the EHB was launched at the beginning of December with a budget of EUR 1.2 billion. In addition, Spain, Lithuania and Austria committed up to EUR 836 million under the AaaS mechanism to back local projects. The terms and conditions for the tender were revised about two months before its start.
Germany has not cancelled funding for the "Auctions-as-a-Service" initiative under the European Hydrogen Bank (EHB) but will continue discussions with the European Commission to secure further improvements for German companies in future tender rounds, a spokesperson for the federal economy ministry (BMWK) told Renewables Now.
In December 2023, Germany became the first country to allocate EUR 350 million (USD 368.1m) in funding for the initiative from its budget to support green hydrogen generation within its borders. However, not a single German project could be funded under this mechanism following the first EU hydrogen auction.
"The first round of tenders provided us with valuable insights into the tender design and the market situation. However, none of the German projects could be funded through the pilot tender or 'Auction as a service.' From our perspective, the pilot round highlighted a clear need for revisions in the tender design. The BMWK has worked intensively to advocate for improved tender conditions", the spokesperson said.
The ministry welcomed the fact that the European Commission has revised the tender conditions for the second round and introduced important improvements. "We will continue our discussions with the European Commission to secure further enhancements for German companies in future tender rounds," the spokesperson added.
The ministry confirmed that the funds have not been cancelled. "We fundamentally consider such tenders to be a key element in the hydrogen ramp-up, which is why we have successfully implemented the German H2Global auction model through the BMWK over the past two years," the spokesperson said.
The second auction under the EHB was launched at the beginning of December with a budget of EUR 1.2 billion. In addition, Spain, Lithuania and Austria committed up to EUR 836 million under the AaaS mechanism to back local projects. The terms and conditions for the tender were revised about two months before its start.
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