European Hydrogen Bank: the €500 million IF26 auction, announced for December

The European Commission is preparing the fourth auction of the European Hydrogen Bank, the IF26 Hydrogen Auction, funded from the Innovation Fund. The proposed budget is up to 500 million euro and it is aimed at projects producing renewable hydrogen (RFNBO) or low-carbon hydrogen obtained by electrolysis in the European Economic Area, including Romania. The auction is not yet open: the launch is announced for December 2026, and the final conditions will be published only with the call.

In brief

• Programme: Innovation Fund – IF26 Hydrogen Auction, the fourth auction of the European Hydrogen Bank
• Authority: European Commission (DG CLIMA); the authority awarding the funding is CINEA or, under the "Auctions-as-a-Service" mechanism, the national authority
• Beneficiaries: producers of RFNBO hydrogen and/or low-carbon electrolytic hydrogen, with projects located in the EEA
• Total budget: up to €500 million, proposed under two topics: €350 million for RFNBO hydrogen and €150 million for RFNBO and/or low-carbon electrolytic hydrogen
• Value per project / intensity: fixed premium per kilogram of hydrogen produced, for a maximum of 10 years; maximum bid price of €4/kg; maximum grant of €175 million (topic 1) and €150 million (topic 2), according to the draft terms
• Submission period: not yet announced; the launch is scheduled for December 2026
• Status: the draft terms and conditions were under public consultation until 24 August 2026; the final version is due to be published with the call

What is funded and how does the auction work?

Unlike a classic call for proposals, the support does not cover a percentage of the investment. Bidders bid a price in euro per kilogram of hydrogen, and the winners receive this amount as a fixed premium for every kilogram produced, verified and certified, for a period of at most 10 years from entry into operation. Payments are made every six months.

According to the draft terms published on 9 July 2026:

• bids are ranked by price only, from lowest to highest (payment is made at the bid price, "pay-as-bid");
• the maximum accepted price is €4/kg, the same for both topics;
• the maximum grant results from the formula price × estimated average annual volume × 10 years;
• the capacity must be new: works cannot have started by the submission date;
• there are no restrictions on the buyers of the hydrogen.

Who can apply?

Companies or consortia with projects located in the EEA may take part, with no restrictions on the country of origin of the consortium members. The project must have at least 5 MWe of newly installed electrolysers at a single location. Virtual aggregation of capacities is not permitted. Low-carbon hydrogen must achieve a greenhouse gas emissions reduction of at least 70%.

The draft terms also introduce resilience requirements: at least 75% of the electrolysers must come from a country other than China, and for these electrolysers the stacks cannot be of Chinese origin and at most two of the other main components may come from China. A cybersecurity plan and compliance with the "do no significant harm" (DNSH) principle are also required.

What documents and guarantees are required?

• Electricity supply strategy: it must cover 100% of the hydrogen volumes bid. For at least 60% of the required energy volume, signed pre-contracts (heads of terms) are needed, no older than one year at the submission date.
• Performance guarantee: 8% of the maximum grant, issued by an EEA bank with a minimum BBB- rating. A letter of intent from the bank is required at submission.
• Delivery deadlines: financial close within at most 2.5 years and entry into operation within at most 5 years of signing the grant agreement. If the deadlines are not met, the guarantee is called.
• Performance: the contract may be terminated or the grant reduced if production falls below 30% of the annual volume bid, on average, for three consecutive years.

What do previous auctions show?

In the third auction (IF25), with a budget of €1.3 billion, 57 eligible bids were submitted. By June 2026, 13 projects had been selected, with grants requested of €1.241 billion. The award price was €1.48/kg under the general RFNBO topic and €1.10/kg under the RFNBO/low-carbon hydrogen topic. Competition was strong, so the €4/kg ceiling is a formal limit rather than a realistic benchmark.

Through the "Auctions-as-a-Service" mechanism, available to all EEA states, a government can add national funds for projects on its territory. According to the document, states had to announce their intention by September 2026 and publicly confirm their contribution by 1 November 2026. The official documents consulted do not mention a contribution from Romania.

What this means for your business

Our recommendation: the auction suits energy project developers, industrial producers that consume hydrogen (fertilisers, refining, chemicals, steel) and consortia that already have a site, a grid connection and an identified renewable energy source. For an SME without these elements, the timeframe is too short. In that case, a more realistic option is to join a consortium, as a partner or supplier.

If you are aiming for December, start preparing now:

• green energy pre-contracts (PPAs), for at least 60% of the requirement;
• discussions with the bank about the guarantee letter;
• quotes from electrolyser suppliers that meet the requirements on component origin;
• a financial model showing a competitive price per kilogram.

The most common pitfall is starting works before submission: firm contracting of equipment can make the project ineligible. You can quickly check other funding sources through the eligibility check.

Frequently asked questions

Can I submit a bid in the IF26 hydrogen auction now?

No. As of 26 September 2026 the auction is not open. The European Commission has announced the launch for December 2026, and the submission deadline will be set in the call documents.

Are the figures in the draft terms final?

No. The document published on 9 July 2026 is a draft subject to consultation. The budget per topic, the ceilings and the requirements may change in the final version, and in case of differences the call documents prevail.

What is the minimum capacity of a project?

According to the draft terms, at least 5 MWe of newly installed electrolysers at a single location are required. Capacities at several sites cannot be added together.

How is the support paid?

As a fixed premium in euro per kilogram of hydrogen produced, verified and certified, paid every six months after entry into operation, for a period of at most 10 years. No advance payment is made for the investment.

Can companies from Romania take part?

Yes. Projects located in any EEA state, including Romania, may take part, and consortium members may come from any country.

Official sources

• European Commission – Innovation Fund: Competitive bidding (hydrogen auctions)
• Innovation Fund IF26 Hydrogen Auction – Draft Terms and Conditions (9 July 2026)
• Innovation Fund Webinar – IF26 Hydrogen Auction (8 September 2026)

Information checked on 26 September 2026. Conditions may be amended by the managing authority — check the guide in force before submitting.