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Call key data

Innovation Fund 2024 Auction - Fixed Premium Auction for RFNBO hydrogen production

Funding Program

Innovation Fund

Call number

INNOVFUND-2024-AUC-RFNBOH2-GENERAL

deadlines

Opening
03.12.2024

Deadline
20.02.2025 17:00

Call budget

€ 1,000,000,000.00

Link to the call

Link to the submission

Call content

short description

The objective of this topic is to support the production of renewable fuel of non-biological origin (RFNBO) hydrogen in Europe as defined in the Renewable Energy Directive 2018/2021 and its Delegated Acts, from new, additional installed capacity in support of the 2030 targets for renewable hydrogen established in this Directive and supported by the REPowerEU Plan and reiterated in the Green Deal Industrial Plan and the European Hydrogen Bank Communication. This topic also supports achieving security of supply of essential goods and Europe’s industrial leadership and competitiveness in the hydrogen sector.

Call objectives

The call supports the RFNBO industry and mobility targets established in the Renewable Energy Directive 2018/2021 and is aligned with its Delegated Regulations on methodology for RFNBOs.

As announced in the European Hydrogen Bank Communication, the topic will further contribute to:

  • Connecting EU domestic RFNBO hydrogen supply and demand.
  • Bridging the cost-gap in the EU between RFNBO and fossil hydrogen as effectively as possible.
  • Allowing for RFNBO hydrogen price discovery and market formation in the EU.
  • De-risking European RFNBO hydrogen projects, bringing capital costs down and leveraging private capital.
  • Contributing to faster deployment and simpler implementation of projects, while reducing administrative burden and costs.

Expected results

The following activities can be funded under this topic:

Installation of new, additional, RFNBO hydrogen production capacity (i.e. hydrogen production capacity for which at the time of the grant application the start of works did not yet take place) as well as the verified and certified production of RFNBO hydrogen from those installations (in kg of produced volume) for a period of up to 10 years.

For avoidance of doubt:

  • The bid price per unit is expected to cover the premium required by the producer, i.e. the difference between the expected revenues from the sale of one unit and the unit’s levelized cost. (i.e. elements like production, sale, transport, and storage can be priced into the bid).
  • The produced RFNBO hydrogen can be sold to any off-taker or self-consumed or stored. The RFNBO definition applies to hydrogen purchased by any off-taker (not only in transport).

Minimum installed capacity: only projects with a minimum installed capacity of the electrolyser of at least 5 MWe are eligible.

The electrolyser capacity must be in a single location. Virtual pooling of capacity is not permitted.

Projects must limit the sourcing of electrolyser stacks with surface treatment or cell unit production or stack assembly carried out in China to no more than 25% (in MWe) of the total electrolyser capacity as expressed in the bid (see section 9 of the call document).

Projects must comply with standard ISO 22734:2019 for “Hydrogen generators using water electrolysis — Industrial, commercial, and residential applications” (or the latest approved version replacing it (see section 10 of the call document).

Projects must ensure the security of the funded installations by keeping the operational control of the installation with an entity established in the EU/EEA and by storing the data within the EU/EEA (see section 10 of the call document).

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Eligibility Criteria

Regions / countries for funding

EU Member States, Overseas Countries and Territories (OCT)
Iceland (Ísland), Liechtenstein, Norway (Norge)

eligible entities

Education and training institution, International organization, Non-Profit Organisation (NPO) / Non-Governmental Organisation (NGO), Other, Private institution, incl. private company (private for profit), Public Body (national, regional and local; incl. EGTCs), Research Institution incl. University, Small and medium-sized enterprise (SME)

Mandatory partnership

No

Project Partnership

In order to be eligible, the applicants (beneficiaries and affiliated entities) must:

  • be legal entities (public or private bodies)

  • be established in one of the eligible countries: any country in the world.

Specific cases:

Natural persons are NOT eligible (with the exception of self- employed persons, i.e. sole traders, where the company does not have legal personality separate from that of the natural person).

International organisations are eligible. The rules on eligible countries do not apply to them.

Entities which do not have legal personality under their national law may exceptionally participate, provided that their representatives have the capacity to undertake legal obligations on their behalf, and offer guarantees
for the protection of the EU financial interests equivalent to that offered by legal persons.

EU bodies (with the exception of the European Commission Joint Research Centre) can NOT be part of the consortium.

Entities composed of members may participate as ‘sole beneficiaries’ or ‘beneficiaries without legal personality’. Please note that if the action will be implemented by the members, they should also participate (either as beneficiaries or as affiliated entities, otherwise they cannot claim part of the grant).

other eligibility criteria

  • Projects must be located in EU Member States or EEA countries (i.e. Norway, Iceland or Liechtenstein).
  • Financial support to third parties is not allowed.
  • The project must:
    • reach financial close within 2.5 years after grant signature (maximum time to reach financial close)
    • enter into operation within 5 years after grant signature (maximum time to entry into operation)
    • operate for a maximum of 10 years (unless the total volume committed to in Annex 1 of the Grant Agreement is reached earlier, due to the production flexibility rules; see section 10)
  • Project duration (grant duration) normally ranges between 10 and 15 years, from grant signature to the final payment.

Project budget:

Project budgets (requested grant amount) must be calculated using the calculator provided in the ‘financial information file’ and respect the following conditions:

  • applicant bid price (fixed premium in EUR per kg) multiplied by the expected average yearly volume of production (kg per year) multiplied by 10 years (maximum period of operation supported by the grant)
  • not exceed 1/4 of the topic budget
  • Only bids that do not exceed EUR 4,50/kg of RFNBO hydrogen produced will be eligible (‘ceiling price’). Proposals with bid prices above the ceiling price will be rejected.
  • The grant awarded may be lower than the amount requested.

This Innovation Fund auction is complemented by national funding windows through auctions as a service. Projects that pass the evaluation for the Innovation Fund auction grant but cannot be funded because they exceed the budget ceiling, may benefit from national funding, if the project is located in a country with a national funding window, if it complies with Member State specific funding conditions and if it has consented to be considered for national funding (see section 8 of the call document).

For the present call, the following countries have opened auctions as a service (AaaS) funding windows (pending State aid decision adoption):

  • Austria EUR 400 000 000
  • Spain EUR 280 000 000 –400 000 000
  • Lithuania EUR 36 000 000

Additional information

Topics

Energy Efficiency, Renewable Energy

Relevance for EU Macro-Region

EUSAIR - EU Strategy for the Adriatic and Ionian Region, EUSALP - EU Strategy for the Alpine Space, EUSBSR - EU Strategy for the Baltic Sea Region, EUSDR - EU Strategy for the Danube Region

UN Sustainable Development Goals (UN-SDGs)

project duration

between 10 and 15 years

Additional Information

Proposals must be submitted electronically via the Funding & Tenders Portal Electronic Submission System (accessible via the Topic page in the Search Funding & Tenders section). Paper submissions are NOT possible.

Proposals must be complete and contain all the requested information and all required annexes and supporting documents:

  • Application Form Part A — contains administrative information about the participants (future coordinator, beneficiaries and affiliated entities) and the summarised budget for the project (to be filled in directly online)
  • Application Form Part B — contains the technical description of the project (to be downloaded from the Portal Submission System, completed and then assembled and re-uploaded)
  • Part C contains additional project data and the project’s contribution to EU programme key performance indicators (to be filled in directly online)
  • mandatory annexes and supporting documents (templates available to bedownloaded from the Portal Submission System, completed, assembled and re-uploaded, unless instructed otherwise):
    • detailed budget table/calculator (‘financial information file’ with the bid) (see template)
    • participant information (including CVs and previous projects, if any) (see template)
    • timetable/Gantt chart (see template)
    • feasibility study - (see template)
    • sourcing strategy: renewable electricity sourcing strategy together with relevant Heads of Terms; see Annex 2
    • off-take and price hedging strategy: hydrogen off-take and price hedging strategy together with relevant Heads of Terms; see Annex 2
    • equipment procurement strategy: electrolyser procurement strategy together with relevant Memoranda of Understanding/Letters of Intent/another form of pre-contractual signed term sheets; see Annex 2
    • permits, licences, authorisations, etc:
      • evidence of initiated process with relevant national or regional authority to receive an environmental permit within the maximum time to entry into operation; see Annex 2
      • evidence of the strategy to receive a grid connection within the maximum time to entry into operation (only for projects planning to procure electricity from the grid); see Annex 2
    • completion guarantee letter of intent (at proposal submission, for all projects) and completion guarantee (during GAP, for projects invited to grant preparation). (see template)
    • extended Part C form (for statistical data collection) (see template)

Proposals are limited to maximum 50 pages (Part B). Evaluators will not consider any additional pages. Feasibility study must not exceed 60 pages.

Contact

Innovation Fund NCP
Website

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