Category: Nieuws

Some 50 oil and natural gas producers, including Saudi Aramco and 29 other national oil companies, have signed an agreement to reduce their carbon emissions to net zero by 2050 and curb methane emissions to near-zero by 2030, the COP presidency of the UN Climate Change Conference in Dubai said Dec. 2.

“If we want to accelerate progress across the climate agenda, we must bring everyone in to be accountable and responsible for climate action,” said Jaber. “We must all focus on reducing emissions and apply a positive can-do vision to drive climate action and get everyone to take action. We need a clear action plan, and I am determined to deliver one.”

The agreement is part of a Global Decarbonization Accelerator launched at COP28, focused on three pillars: energy systems of the future such as renewables and hydrogen; the fossil fuel sector and emission-intensive industries; and methane.

Under the oil and gas pillar, the industrial transition accelerator will focus on decarbonization across key heavy-emitting sectors: cement, aluminum, steel, oil and gas, power and aviation/maritime.

The 50 oil and gas companies account for 40% of global oil production. The net zero commitment relates to scope 1 and 2 emissions, a COP28 presidency spokesman said.

Key national oil companies such as Kuwait Petroleum Corporation, QatarEnergy, Iraq’s State Oil Marketing Company, China’s Sinopec, CNOOC and PetroChina, and the National Iranian Oil Company, were missing from this list.

This comes as many investors and activists, don’t believe the industry has done enough and they have doubled down on efforts to put these companies under pressure. Many fossil fuel producers will be forced to balance the need to maximize shareholders’ financial returns with pressures to decarbonize.

Methane challenge
On methane, the agreement sees the 50 companies commit to setting interim targets that would reduce methane emissions to 0.2% of oil and natural gas production by 2030, and to end routine flaring.

What makes this pledge distinctive is that it will be scrutinized using technology and data.

The United Nations Environment Program’s International Methane Emissions Observatory (IMEO), the Environmental Defense Fund and the International Energy Agency will help monitor compliance by tracking methane emissions using satellite data, and other analytical tools.

Fred Krupp, president of the non-profit advocacy group the Environmental Defense Fund, said the pledge had the potential to be the most impactful climate action in over three decades.

“It could lower the planet’s temperature and reduce cataclysmic storms from what we will otherwise experience in the next decade,” he said.

Methane accounts for 45% to 50% of oil and gas emissions, 80% of it from upstream, the spokesperson said. The methane pledge includes zero routine flaring by 2030, he added.

The US and China will separately continue their conversation on methane reduction, a spokesman for the COP28 presidency said.

The energy sector — including oil, natural gas, coal and bioenergy — accounts for nearly 40% of methane emissions from human activity.

MPC demand low
Methane emissions generated by production are a significant contributor to the carbon intensity of natural gas.

Platts, part of S&P Global Commodity Insights, assesses methane performance certificates traded in the spot market that represent low methane emissions in natural gas production in the US and Canada.

Each MPC represents 1 MMBtu of gas with zero methane emissions produced. Platts reflects MPCs that have been issued against production that has a methane intensity of less than 0.10%.

Prices have fallen to just $0.01/MPC in recent months with very little demand for the certificates at present.

Many countries and governments are gradually starting to enforce measures to curtail methane leaks and emissions.

In November, the EU reached a landmark political agreement on a regulation for tracking and reducing methane emissions in the energy sector — the first-ever EU law to curb methane emissions.

Similarly, in early-November, China issued an action plan to control methane emissions that establishes a broad framework for measurement and identifies selected industries for future implementation.

According to the International Energy Agency, if all methane leaks from fossil fuel operations in 2021 had been captured and sold, then gas markets would have been supplied with an additional 180 Bcm of gas.

The IEA said that was equivalent to all the gas used in Europe’s power sector. Marketing gas that is lost would also be profitable for producers given sustained high international gas prices.

Signatories to the Oil and Gas Decarbonization Charter
National oil companies (NOCs)
International oil companies (IOCs)
ADNOC
Azule Energy
Bapco Energies
BP
Ecopetrol
Cepsa
EGAS
COSMO Energy
Equinor
Crescent Petroleum
GOGC
Dolphin Energy
INPEX
Energean Oil & Gas
KazMunaiGas
Eni
Mari Petroleum
EQT Corp.
Namcor ExxonMobil
NOC (Libya)
ITOCHU
Nilepet
Lukoil
Nigerian National Petroluem Corp.
Mitsui
OGDC
Oando
OMV
Occidental Petroleum
ONGC
Puma Energy (Trafigura)
Pakistan Petroleum
Repsol
Pertamina
Shell
Petoro
TotalEnergies
Petrobras
Woodside Energy Group
Petroleum Development Oman
Petronas
PTTEP
Saudi Aramco
SNOC
SOCAR
Sonangol
Uzbekneftegaz
ZhenHua Oil
YPF

S&P Global Eklavya Gupte, Claudia Carpenter, Ivy Yin, Jennifer Gnana, December 5, 2023

Registration is now open for StocExpo 2024, the internationally recognised meeting-place for 3,700+ tank storage and energy infrastructure professionals.

In partnership with the Federation of European Tank Storage Associations (FETSA), the conference & exhibition will feature two conference theatres, a terminal tour, the Global Tank Storage Awards ceremony and a packed exhibition floor full of the latest storage innovations.

Once a year the industry comes together in Rotterdam to learn new approaches to improve operations, discover innovative solutions to make storage infrastructure safer, and to network with leading industry professionals.

Margaret Dunn, Portfolio Director at StocExpo, says, “We’re always excited at this time of year, when the countdown to StocExpo begins. It’s the single most important event for the tank storage industry, where ideas are shared, deals are brokered, and decisions are made which influence the future of the sector.”

With the energy transition well underway, StocExpo aims to address the industry’s ongoing challenge to develop safe and cost-effective future fuels storage infrastructure.

This year’s conference programme will feature a range of expert speakers including Bowen Xu, Director of Corporate Development & Investments at OCI, Tamme Wekkes, Business Development Director for Koole Terminals, Aivars Starikovs, Member of the Board for European Hydrogen Council, Bruni Hayem, CEO of Rubis Terminal and many more.

Topics covered include tackling the energy trilemma, what the energy transition looks like in Asia and the Middle East and the impact of the evolving geopolitical landscape on the storage sector.

A second conference theatre geared towards asset and maintenance managers will feature engaging speakers covering a variety of topics including safety best practices, digitilisation and how to future-proof your terminal.

“The floorplan is packed with disruptive technologies as well as equipment that is essential to every terminal operator,” Dunn adds. “With late-night networking opportunities, the Global Tank Storage Awards ceremony and the iTanks pitch lunch, there are countless opportunities to network and celebrate excellence in our industry. We can’t wait to see you there.”

StocExpo, December 5, 2023

Today, Vopak provides an update on its portfolio related to the successful completion of the 50% acquisition of EemsEnergyTerminal and completion of the sale of the three chemical terminals in Rotterdam.

This update is in line with the Vopak strategy to improve its financial and sustainability performance, to grow its base in industrial and gas terminals, and to accelerate towards new energies and feedstocks.

Acquisition 50% EemsEnergyTerminal
Vopak has completed the principle agreement that was announced in April 2023 and has become a 50% shareholder in EemsEnergyTerminal, an LNG import terminal of 8 billion cubic meter (bcm) per year located in the Eemshaven in the Netherlands. This terminal has been operational since September 2022.

Gasunie and Vopak are working to increase the capacity further towards 10 bcm per year, highlighting the commitment of the partners to jointly develop and operate open access LNG infrastructure and contribute to the energy security of Europe. The partners are planning the further development of the Eemshaven site to facilitate the import of green hydrogen.

The total investment by Vopak to acquire 50% of EemsEnergyTerminal is just above EUR 80 million with cash out in two installments in Q4 2023 and in Q2 2024. This acquisition will positively contribute to Vopak’s operating cash return for the remainder of the year and has limited impact on the Vopak full year 2023 EBITDA outlook.

Sale of three chemical terminals in Rotterdam
Vopak has completed the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven) to Infracapital for a total purchase price of EUR 407 million including a conditional deferred payment of EUR 19.5 million. Total cash receipt net of transaction costs and net debt items at closing is EUR 372 million. The combined operational capacity of the three terminals is 1.4 million cbm. This follows our announcements on the strategic review on 15 February 2023 and on the agreement for sale on 19 September 2023.

Dick Richelle, CEO of Vopak: “The successful completion of this acquisition and divestment supports our strategic goals and positions the portfolio towards higher and long term cash returns. It grows our footprint in gas and gives the opportunity to accelerate towards new energies in the future. Vopak’s unique global portfolio and partnerships strategically position us to leverage the strong market fundamentals and energy transition opportunities. We are proud to be leading the way in providing infrastructure solutions that are and will be essential to the economy and the daily lives of people around the world.”

Vopak, December 1, 2023

Exxon Mobil will complete a $1 billion expansion of diesel production at its Fawley UK oil refinery next year, a key step in curbing the country’s reliance on imports.

The oil major also announced plans to add a new hydrogen plant at Britain’s biggest oil-processing complex, potentially paving the way for the production of sustainable aviation fuel. That unit will run on natural gas, Exxon said.

Exxon (NYSE:XOM) has been working for years on the Fawley diesel facility, which was put on hold when the Covid pandemic prompted a collapse in fuel demand and refining margins. That’s since reversed in Europe, with the profit from turning crude oil into diesel holding above historical averages after sanctions on Russia deprived the region of its biggest external supplier.

The refinery on England’s south coast will boost output of low-sulfur diesel by 40%, the company said in a statement. The project, dubbed Fast, will reach full production in 2025, when the Grangemouth refinery in Scotland is scheduled to stop making the fuel.

While UK diesel demand has struggled to return to pre-pandemic levels, the nation relies on imports for up to about half of its consumption. The Fawley project could help to cut imports by as much as a quarter, according to Exxon.

First production from the expansion will be available in 2024. Exxon had forecast an increase of almost 45%, or 38,000 barrels a day, in ultra-low sulfur diesel output, when it took the final investment decision in 2019.

The hydrogen plant at Fawley would be part of what’s known as the Solent cluster, which brings together companies looking at decarbonizing industry.

Exxon Mobil was awarded funding from the UK government earlier this month to look at the production of sustainable aviation fuel at Fawley, which is linked to London’s Heathrow airport by pipeline.

If the project proceeds, it could provide the UK with 20% of its SAF needs by 2030, according to a statement at the time.

Energy Voice, December 1, 2023

Octopus Energy Group today announces it has completed the acquisition of Shell Energy Retail in the UK and Germany from Impello Limited, a subsidiary of Shell Petroleum Company Limited.

The green energy provider will start the technical process of migrating 1.3 million home energy customers to its systems in the UK and Germany from 1 December. The migration is expected to be completed in mid 2024.

This will grow Octopus to 6.6 million household customers in the UK (over 11 million meter points). Its customer base in Germany will grow to almost 300,000. As part of the deal, Octopus has also acquired almost 500,000 Shell broadband customers.

Shell Energy Retail customers should sit tight for now, as they will be contacted in the next few days with further details of the move. There will be a “smooth transition and no disruption” to energy supply. Credit balances are protected and will automatically be transferred to customers’ new accounts with Octopus together with existing direct debits.

Octopus has a strong track record in large-scale customer migrations through its proprietary tech platform Kraken, and has already operated over 30 since launch. To ensure a smooth transition, customers are advised to not switch midway through the migration process as this could affect their service and move to their new energy supplier.

As part of the deal, Shell and Octopus have also decided to deepen the relationship between Electroverse, Octopus’ EV chargepoint roaming service, and Shell Recharge stations.

The pending agreement will see Electroverse customers benefit from offers at Shell forecourts and Shell Recharge EV subscriptions, enabling them to make use of the most premium Fast Charging network in the UK.

Greg Jackson, founder of Octopus Energy Group, commented: “We are pleased to be the new home for Shell Energy Retail customers in the UK and Germany. Now even more customers can receive our five star customer service and choose from a whole heap of cheap, green tariffs, benefitting both their pockets and the energy system.

“Our commitment to customers is paramount, and we will deliver the Octopus promise when we welcome these new customers too.”

Octopus is headquartered in London and operates in 17 countries, with significant businesses in energy retail, generation, technology, heat pumps and electric vehicles. It has received well over £1bn in investment from global giants, including investment funds, pension funds and large energy companies.

Octopus Energy, December 1, 2023

Czech utility CEZ has booked 2 billion cubic metres (bcm) of annual capacity at a yet-to-be build land-based terminal for liquefied natural gas (LNG) imported into Germany’s Stade from 2027, spurring the build-up of transport infrastructure and securing itself future energy supplies.

Germany’s quest to increase LNG import capacity has intensified as it seeks to end reliance on Russian pipeline gas, on which the European region relied heavily prior to Moscow’s invasion of Ukraine last year.

Pending the provision of fixed terminals, Germany is using floating storage and regasification terminals (FSRUs) to help to replace piped Russian gas supplies.

Three FSRUs are working at the Wilhelmshaven, Brunsbuettel and Lubmin ports after Germany arranged their charter and onshore connections.

Wilhelmshaven, Stade and Mukran, a port on the Baltic Sea island of Ruegen due to be connected with Lubmin on the mainland, are due to add more FSRUs for the 2023/24 winter.

Industry and the government are also building up terminal capacity in anticipation of increased use of hydrogen at the sites, which when produced using renewable energy can help the transition to a lower carbon economy.

State-owned Deutsche Energy Terminal held auctions for regas capacities in 2024 at Brunsbuettel and Wilhelmshaven 1 earlier this month and plans Stade and Wilhelmshaven 2 rounds in December.

MUKRAN
Private company Deutsche ReGas reported in August that suppliers have booked 4 billion cubic metres (bcm) of capacity for 10 years per annum at Mukran, where the company wants to pull together two FSRUs for deliveries to the mainland.

It has chartered a second FSRU, the Transgas Power, with regasification capacity of 7.5 billion cubic metres (bcm), to complement the Neptune currently active at Lubmin.

LNG from Mukran is aimed to flow to onshore grids via gas grid company Gascade’s new pipeline from the first quarter of 2024, which obtained approval for completion from mining authorities earlier this month.

The project has triggered local opposition. But two legal challenges by environmental groups DUH and Nabu were thrown out by the federal administrative court in September.

WILHELMSHAVEN
Utility Uniper launched Germany’s first FSRU operations, Wilhelmshaven 1, last December at the deep-water port on the North Sea. [LNG/TKUK]

Tree Energy Solutions (TES) will operate a second FSRU from later in 2023 for five years, Wilhelmshaven 2.

Uniper plans to add a land-based ammonia reception terminal and cracker in the second half of this decade. Ammonia is at times used as a carrier for hydrogen, whose low density otherwise makes transportation over long distances complicated.

TES also has plans to eventually convert its operations to clean gases.

LUBMIN
The FSRU Neptune, chartered by Deutsche ReGas, began receiving LNG at Lubmin in the Baltic Sea early this year.

The gas is first delivered to another storage vessel, the Seapeak Hispania, and shuttled to Lubmin in a set-up taking account of shallow water.

ReGas holds long-term supply deals with France’s TotalEnergies and trading group MET.

The government wants the Neptune to move to Mukran, allowing the Seapeak Hispania to depart, and join the second FSRU there, the Transgas Power.

Regas plans hydrogen electrolysis plants at both Lubmin and Mukran.

BRUNSBUETTEL
The EU Commission approved a 40 million euro support measure for the land-based liquefied natural gas (LNG) terminal at Brunsbuettel on the North Sea, citing its contribution to the security and diversification of supply.

The Brunsbuettel FSRU, operated by RWE’s trading arm, became operational in mid-April.

It is the forerunner of a land-based LNG facility, now in receipt of a parcel of approved state support, that could start operations at the end of 2026, when an adjacent ammonia terminal could also start up.

State bank KfW, Gasunie and RWE are stakeholders and Shell has committed itself to sizeable purchases.

The total costs of the land-based terminal are 1.3 billion euros.

STADE
The inland port on the river Elbe in January started work on a landing pier for an FSRU, to be ready in the 2023/24 winter. Designated vessel Transgas Force is moored at Bremerhaven port to be fixed up for the purpose.

Project firm Hanseatic Energy Hub (HEH) also plans a land-based terminal where it has allocated regasification capacity to become operational in 2027, including volumes for state-controlled SEFE, utility EnBW and now CEZ.

It has begun sounding out the market to determine whether the longer-term plans should be based largely on ammonia to be reconverted into clean hydrogen. It has identified a construction consortium.

HEH is backed by investment firm Partners Group, logistics group Buss, chemicals company Dow and Spanish grid operator Enagas.

EnBW, which is also a buyer at Wilhelmshaven and Brunsbuettel, doubled annual purchases to 6 bcm.

Market Screener, Vera Eckert, November 25, 2023

Brazil’s state-owned oil and gas giant Petrobras has unveiled its new strategic plan for the 2024-2028 period, outlining that oil and natural gas will be given the biggest slice of the Brazilian player’s $102 billion investment pie, seeing them as drivers of growth which will propel and fund the energy transition to greener sources of supply. In line with its net zero goals, the company plans to dish out $11.5 billion on projects that will enable a reduction in its carbon footprint, spotlighting the role of biorefining, wind, solar, carbon capture, utilization and storage (CCUS), and hydrogen in this decarbonization quest.

Petrobras’ board of directors approved the firm’s strategic plan for the 2024-2028 five-year period on November 23, 2023. This strategic plan aims to strengthen and prepare the company for the future by initiating a process of integrating energy sources, which the Brazilian giant perceives to be essential for “a fair and responsible energy transition.” To this end, the new plan will be implemented with “total attention to people, safety and respect for the environment, perpetuating value for future generations, with a focus on capital discipline and a commitment to keeping the company’s indebtedness under control,” according to Petrobras.

The firm’s CAPEX forecast for the 2024-2028 period totals $102 billion, 31% higher than the previous plan, with $91 billion corresponding to projects under implementation and $11 billion composed of projects under assessment, which are subject to additional financial feasibility studies before contracting and execution begin. This increase in CAPEX is mainly associated with new projects, including potential acquisitions; assets that were in divestment and returned to the company’s investment portfolio; and cost inflation, which impacted the entire supply chain.

Furthermore, the CAPEX amount in the Exploration and Production (E&P) segment represents 72% of the total, followed by Refining, Transportation and Marketing (RTM) with 16%, Gas and Low Carbon Energies with 9%, and Corporate with 3%.

“Oil and natural gas commodities will continue to be the main drivers of value, with economic and environmental resilience, financing the just transition. Profitable low-carbon investments will gain relevance for long-term value generation. Governance will be respected in all decision-making processes and project evaluations, guaranteeing sustainability and profitability, with more transparency,” underlined Petrobras.

Pre-salt getting largest share of $73 billion E&P CAPEX
Based on the Brazilian player’s E&P CAPEX for the 2024-2028 period of $73 billion, around 67% will be allocated to the pre-salt. Petrobras claims that pre-salt has “a major economic and environmental competitive advantage,” with the production of “better quality” oil and lower emissions of greenhouse gases. In terms of exploration, $7.5 billion is planned for the five-year period, covering $3.1 billion for exploration in the Equatorial Margin; $3.1 billion for exploration in the Southeast Basins; and $1.3 billion for other countries. This investment encompasses the drilling of around 50 wells in areas where the company has exploration rights in acquired blocks.

“The E&P segment remains relevant to the company, with a strategic focus on profitable assets and investments compatible with a long-term vision aligned with the energy transition. At the same time, the company maintains significant deepwater revitalization projects (REVIT), as well as complementary projects, in order to increase recovery factors in mature fields,” pointed out Petrobras.

The Brazilian giant is adamant that the E&P segment maintains the premise of double resilience both economic and environmental, and high economic value, with a portfolio that is viable in scenarios of low oil prices in the long term, including Brent with a prospective average break-even of $25 per barrel, and with a carbon intensity commitment of up to 15 KgCO2e per barrel of oil equivalent by 2030.

14 new FPSOs on the five-year horizon
With Petrobras’ strategic focus at the forefront, exploration and production activities are expected to be concentrated on profitable assets, thus, pre-salt production will represent 79% of the company’s total at the end of the five-year period. As a new generation of platforms is being built, more modern, more technological, more efficient, and with lower emissions, the Brazilian player’s production curve considers the entry of 14 new FPSOs in the 2024-2028 period, ten of which have already been contracted. Thanks to this plan, the firm aims to produce 3.2 million barrels of oil and gas equivalent per day in five years.

In accordance with this, the projections for oil production, total production, and commercial production of oil and natural gas for 2024 have been increased by approximately 100,000 bpd/boed compared to the previous plan, considering the performance of the fields, the forecasts for ramp-ups and the entry of new wells. During 2025 and 2026, oil production, total production, and commercial production of oil and natural gas are anticipated to be around 100,000 bpd/boed, lower than projected in the previous plan.

The company elaborates that this deviation is mainly due to current market conditions arising from the global context, where some production systems and complementary deepwater projects have had their schedules impacted. However, the fluctuations are part of the dynamics of the industry and are within the range of uncertainty disclosed in the last plan. Come 2027, the projections for oil production and total and commercial production of oil and natural gas are maintained in relation to the previous plan.

Moreover, the Gas & Energy (G&E) segment’s CAPEX totals $3 billion for the five-year period and Petrobras emphasizes that progress is being made not only in competitive and integrated operations within the gas and energy trade but also in improving the portfolio, working towards the inclusion of renewable sources aligned with decarbonization actions. One of the Brazilian player’s priorities in this segment is to expand the infrastructure and portfolio of natural gas offers.

Considering the investments in gas production and disposal in the E&P segment, the firm plans to boost domestic gas supply by investing around $7 billion over the next five years. To this end, Route 3 will come into operation in 2024 with a processing plant with a capacity of 21 MMm³/day and a pipeline with a capacity of 18 MMm³/day. Four years later, the Raia project gas pipeline (BM-C-33) will come into operation, with a capacity of 16 MMm³/day; while the Sergipe Águas Profundas – SEAP project gas pipeline will be online in 2029, with a capacity of 18 million m³/day.

The hydrocarbon exploration and production steps Petrobras is taking are in line with the Brazilian Ministry of Mines and Energy (MME)’s program – unveiled in March 2023 – to boost investments in oil and natural gas exploration in a bid to promote regional development and foster national production while turning Brazil into the fourth largest oil producer in the world.

Multi-billion spending for low-carbon future
As Petrobras’ priorities entail several elements, including reducing its carbon footprint, protecting the environment, caring for people, and acting with integrity, the firm reaffirms its ambition of “zero fatalities and zero leakages, in line with its commitment to life and the environment, which are non-negotiable values.”

To bring its energy transition vision to life, the firm will allocate up to $11.5 billion to low-carbon projects over the next five years, considering transversal investments in the various business segments. This covers initiatives and projects to decarbonize operations, alongside the maturing and development of businesses in the low-carbon energy segment, with emphasis on biorefining, wind, solar, CCUS, and hydrogen.

As a result, low-carbon investment represents 11% of Petrobras’ total investment in the 2024-2028 average, indicating progress in the company’s current position in relation to its market peers. The forecast indicates that low-carbon investment will gradually gain ground in the firm’s portfolio over the period, reaching 16% by 2028.

Petrobras says that investments should be financed primarily by operating cash flow, at levels equivalent to those of its peers, preferably through partnerships that allow for the sharing of risks and expertise, and seeking a return on investment, a reduction in the cost of capital, and the strengthening of the firm as an integrated energy company.

“Accompanying the great transformations in the world, especially in the energy, digital, social and environmental segments, Petrobras is going through a phase of changes and new perspectives, aiming to prepare for the energy transition and for a fair, inclusive low-carbon economy, with changes in energy use patterns, assessing and minimizing social impacts for all parties: its employees, communities and the entire supply chain,” underlined the Brazilian giant.

Offshore Energy, November 24, 2023

The European Union has launched its first green hydrogen auction with a maximum price of €4.50 ($4.91)/kg. The approved projects will receive subsidies for a decade, alongside revenue from hydrogen sales, and must start production within the next five years.

The European Commission has launched the first hydrogen auction supported by the European Hydrogen Bank.

Renewable hydrogen producers can apply for support in the form of a fixed premium per kilogram of hydrogen produced. This should close the gap between the production price and the price that consumers are currently willing to pay in a market where non-renewable hydrogen production is still cheaper.

Bidders have until Feb. 8, 2024, to submit their proposals through the EU tenders and financing portal. Bids must be based on a proposed price premium per kilogram of renewable hydrogen produced, up to a ceiling price of €4 .50/kg.

Bids up to this limit, and that also meet other qualification requirements, will be ranked from lowest to highest bid price and supported in that order, until the auction budget is exhausted.

The selected projects will receive the awarded subsidy in addition to the market revenue they generate from hydrogen sales, for a maximum of 10 years. Once the projects secure their subsidy agreements, they must begin producing renewable hydrogen within five years.

To maintain an equitable environment for all projects, cumulation with other forms of aid from participating member states is not allowed. Member states can, however, finance projects that participated in the auction but weren’t chosen for support from the Innovation Fund, using the Hydrogen Bank’s “auctions as a service” mechanism, particularly in cases of budgetary constraints.

The pilot auction will contribute to the REPowerEU plan to decarbonize the European economy’s goal of domestically producing 10 million tons of hydrogen by 2030. The commission will launch a second round in the spring.

PV Magazine, Pilar Sánchez Molina, November 24, 2023