Economic Affairs Ministry announces the winner of the German “Auctions-as-a-Service” window of the European Hydrogen Bank’s IF25 auction

Several companies have submitted bids to produce reliable, competitive renewable hydrogen in Denmark on a long-term basis and offer it to the German market. This gives an important boost to the ramp-up of the hydrogen market in Germany.

On 7 May 2026, the European Commission published the outcome of the third round of its EU-wide Innovation Fund auction to promote the production of renewable and low-carbon hydrogen. After two major Danish projects had already been selected for funding, Germany can now support three further projects via the AaaS: The winners of the AaaS IF25 round are:

The three bids are for a total of approx. 78,000 t/a of renewable hydrogen with deliveries starting in 2031. The grant contracts are to cover a 10-year period, and are to be concluded by the end of October 2026. This will enable these projects to make a key contribution to attaining the minimum capacity booking for the planned cross-border hydrogen infrastructure between Denmark and Germany. The hydrogen can then be fed into Germany’s hydrogen core network, which is currently being constructed.

Producers and customers are now called on to conclude the necessary offtake contracts so that the generating installations and the necessary pipeline infrastructure will actually be built.

Denmark has a very high proportion of renewable energy, and offers ideal conditions for lasting, reliable and cost-efficient production of renewable hydrogen. Since renewables are expected to cover more than 90% of electricity generation by 2030, Denmark is not bound by the criteria of the European Delegated Act on Renewable Hydrogen (RFNBO-DA). This means that it is much cheaper to produce hydrogen in Denmark than in many other regions. The hydrogen prices are also subsidised via Auctions-as-a-Service, so that they are therefore already reaching a very attractive price level for future customers connected to the German core network – a price level that otherwise could only be attained much later.

Background to the European Hydrogen Bank and its Auction-as-a-Service mechanism:

The Hydrogen Bank covers the difference between the costs of production of hydrogen and the price which customers are willing to pay for it in order to promote the manufacture of renewable and low- carbon hydrogen made in the EU. The precise level of funding is set via a competitive bidding procedure: producers of renewable or electrolytically produced low-carbon hydrogen whose bids call for the lowest support amount in euros per kilogram are awarded the contract.

The aim of the German AaaS window with a funding volume of up to €1.3 billion is to supply customers connected to the German core network with renewable hydrogen as cost-efficiently as possible. At the same time, targeted incentives will be introduced to develop cross-border hydrogen pipeline infrastructure, which might otherwise not be realised or could be significantly delayed, and which will enable the future import of market-driven hydrogen. In the context of Germany’s IF25 Auctions-as-a- Service window, the renewable hydrogen must be fed into the Danish Hydrogen Backbone 1 pipeline and delivered to consumers connected to the German hydrogen core network.