Main Conditions of the IF24 Auction of the Innovation Fund
In the competitive landscape of green hydrogen, staying informed about changes in financing mechanisms is key to ensuring the success of your project. The European Commission has launched the IF24 Auction, with significant modifications compared to its predecessor, the IF23 Auction. Here’s a summary of the key points so you can make the most of this opportunity!
Objective:
To boost the cost-effective production of Renewable Fuels of Non-Biological Origin (RFNBO) hydrogen within the European Economic Area (EEA), strengthening Europe’s leadership and competitiveness in the hydrogen sector.
Auction Budget:
- General category: €1 billion.
- Maritime sector: €200 million.
Eligibility:
- Projects must produce RFNBO hydrogen through water electrolysis.
- Only new production capacity projects are eligible (construction must not have started before the application).
- Open to producers located in the European Economic Area (EEA).
Type of Support:
- Fixed grant for each verified and certified unit of RFNBO hydrogen, with a maximum period of 10 years.
Bids:
- Price cap: €4/kg (reduced from €4.5/kg in the previous auction).
- Bids are ranked by the price per kilogram of hydrogen produced, using a pay-per-bid system.
Qualification Requirements:
- Compliance guarantee: 8% of the maximum grant amount (up from 4% in the IF23 Auction).
- Projects must reach financial close within 2.5 years and become operational within 5 years.
Production Flexibility:
- Up to 140% of the expected semi-annual production will be supported, but production exceeding this threshold will not receive additional payments.
Environmental and Cybersecurity Requirements:
- Mandatory compliance with safety standards (ISO 22734:2019).
- Projects must present a cybersecurity plan ensuring operational control and data storage within the EEA.
- Restrictions on the origin of electrolyzer components to avoid dependency on countries outside the EEA, ensuring supply chain security.
Penalties:
- Grants may be reduced or canceled if projects fail to meet performance, safety, or cybersecurity requirements.
Below are the most relevant differences between IF23 and IF24. Get ready to seize the new opportunities!
| Criterion | IF23 Auction | IF24 Auction | Main difference |
| Total budget | €720 million | €1.2 mil million | Significant budget increase |
| Price cap per kg of hidrogen | €4.5/kg | €4/kg | Price cap reduction |
| Compliance guarantee | 4% of the maximum grant amount | 8% of the maximum grant amount | Increased compliance guarantee |
| Financial close | Not specified | Within 2,5 years after signing the agreement | New requirement |
| Operational start | Not specified | Within 5 years after signing the agreement | New requirement |
| Production flexibility | No clear specification | Semi-annual production up to 140 % of the annual average | Clarification on production flexibility |
| Maritime Sector Category | Did not exist | €200 million dedicated to maritime sector projects | New category added |
| Maximum Bid Price | Not specified | Limited to €4/kg | Reduced maximum bid price |
| Cybersecurity Requirements | Did not exist | Mandatory plan to ensure control and data security within the EEA | New requirement |
| Resilience and Supply Security | Did not exist | New restrictions on the origin of electrolyzers, limiting dependency on third countries (e.g., China) | New criterion for supply security |
