CIP Projects Triumph in Europe’s Inaugural Hydrogen Bank Auction

Two Copenhagen Infrastructure Partners (CIP) projects, namely Catalina and Madoqua, have successfully secured funding grants through the European Hydrogen Bank’s first auction.

These projects play a critical role in decarbonizing industry sectors such as heavy industries and shipping that are challenging to decarbonize.

Catalina is a green hydrogen project and can deliver an electrolyser capacity of 500 MW. The facility is located in Aragon, the northern region of Spain, and it targets to cut down carbon emissions from industrial processes. On the other hand, Madoqua is a Power-to-X plant based in Sines, Portugal. It aims to generate green hydrogen and ammonia primarily for the shipping industry. It also begins with an electrolyser capacity of 500 MW. Combined, they account for a total electrolyser capacity of 1,000 MW.

These projects have received an invitation for Grant Agreement preparation from the European Commission. Catalina will benefit from a production grant with a fixed premium of 0.48 EUR/kgH2 for around 48,000 tH2 per annum for a decade. It is expected to amass a total of EUR 230.5 million over the period. Likewise, Madoqua will receive a fixed premium of 0.48 EUR/kgH2 for approximately 51,000 tH2 per annum over ten years, estimated to total EUR 245 million.

Søren Toftgaard, representing the partner group of the Energy Transition Fund, expressed their pride at being awarded this grant. The recognition of hydrogen’s importance in the economic landscape by European policymakers was also appreciated by the team. Toftgaard termed this auction as a testament to the maturing economy of the future hydrogen industry. The team extended their gratitude to the authorities, local communities, and partners in both Spain and Portugal for their collaboration towards a greener future.

The projects will receive the granted funding from the commencement of commercial operation until the end of the ten-year grant term. These grants play a substantial role in bringing the projects closer to a Financial Investment Decision by minimizing the gap between the sales price and cost price. However, the grant is contingent on the two projects being operable within five years from signing the grant contract. With this condition, CIP anticipates that both projects will be operational latest by 2029.