Assistance in the Development of an Auction Design and Necessary Pre-conditions for a European Import Auction for Renewable Hydrogen under the European Hydrogen Bank: Final Report

This report supports the European Commission (DG ENER) in the design and implementation of a European import auction for renewable hydrogen and its derivatives under the European Hydrogen Bank (EHB). The EHB aims to contribute to the EU's climate neutrality goal by 2050. While domestic auctions have already been launched under the EHB, its international leg focusing on renewable fuels of non-biological origin (RFNBO) imports from third countries remains to be designed. This report offers strategic recommendations based on hydrogen market analyses, the assessment of existing and planned hydrogen auction schemes in Europe and beyond, as well as preliminary considerations on auction design. The analysis highlights the potential for hydrogen imports from regions like North America, Australia, Latin America, and the MENA region. It includes concrete case studies on both pipeline-based imports of pure hydrogen and ship-based imports of key derivatives (ammonia, methanol and synthetic aviation fuels (eSAF) to reflect Member State preferences and provides a concrete starting point for further defining import auctions. Priority considerations for auction design include ensuring fair competition between domestic production and imports, addressing geopolitical risks, and achieving cost efficiency. The case studies serve as a flexible blueprint for implementing EHB import auctions, considering Member State interests and aligning with the EU's broader objectives.