Two green hydrogen projects owned by CI Energy Transition Fund I, managed by Copenhagen Infrastructure Partners, have secured grants from the European Commission.
In the first European Hydrogen Bank auction, Catalina was awarded €230m while Madoqua was awarded €245m.
Together, they represent a combined electrolyser capacity of 1000MW.
Catalina is a hydrogen project with an electrolyser capacity of 500MW 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 project that will produce green hydrogen and ammonia primarily for shipping.
It has an initial electrolyser capacity of 500MW.
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/kgH2 for 48,000 tH2 per year over a 10-year period, an expected total of €230.5m.
Madoqua will receive a fixed premium of €0.48/kgH2 for 51,000 tH2 per year over a 10-year period, an expected total of €245m.
“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 Soren 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 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.