European Hydrogen Bank

The European Hydrogen Bank (EHB) is a financing instrument and initiative launched by the European Commission in 2022 to accelerate the establishment of a renewable hydrogen market in Europe. It is not a physical bank but a mechanism run by the European Commission to unlock private investment by bridging the cost gap between renewable hydrogen and fossil-based alternatives. The EHB operates through a system of competitive auctions, funded by the EU's Innovation Fund, where producers of renewable hydrogen bid for support in the form of a fixed premium per kilogram of hydrogen produced over a 10-year period. The initiative has both a domestic pillar to support production within the European Economic Area and an international pillar to facilitate hydrogen imports.