Two CIP projects successful in the first European Hydrogen Bank auction
Published by Poppy Clements,
Editorial Assistant
Global Hydrogen Review,
The two projects are cornerstones in the future decarbonisation of European hard-to-abate energy sectors like shipping and heavy industries. Together, they represent a combined electrolyser capacity of 1000 MW.
Catalina is a hydrogen project with an electrolyser capacity of 500 MW located in Aragon in the north of Spain. The project will produce green hydrogen to reduce carbon emissions from industrial applications. Madoqua, located in Sines, Portugal, is a Power-to-X facility that will produce green hydrogen and ammonia primarily for shipping. It has an initial electrolyser capacity of 500 MW.
The two projects have been invited for Grant Agreement preparation with the European Commission. Catalina will receive a production grant with a fixed premium of 0.48 EUR/kgH2 for ~48 000 tpy of H2 over a 10-year period, an expected total of €230.5 million. Madoqua will receive a fixed premium of 0.48 EUR/kgH2 for ~51 000 tpy of H2 over a 10-year period, an expected total of €245 million.
“We are very proud that our projects have been awarded this grant, and we applaud European policy makers for recognising the importance of the hydrogen economy in Europe. This pilot auction shows that the economy behind a future hydrogen industry is maturing, demonstrated by these competitive bids. Today’s announcement is a proof point of CIP’s ability to deliver green hydrogen projects for building a future hydrogen economy in Europe. We would like to thank our partners in both Portugal and Spain as well as the authorities and local communities in both countries for working with us in creating a greener future for the coming generations of Europeans,” said Søren Toftgaard, on behalf of the partner group of the Energy Transition Fund.
The projects will receive the awarded funding from the date of commercial operation until the end of the 10-year grant period. The grants are bringing the projects closer to Financial Investment Decision (FID) by reducing the gap between cost price and sales price and are important enablers for the success of the projects. The grant is dependent on the two projects being operational within five years of signing the grant agreement. CIP expects the two projects to be operational no later than 2029.
Read the article online at: https://www.globalhydrogenreview.com/hydrogen/01052024/two-cip-projects-successful-in-the-first-european-hydrogen-bank-auction/
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