The German government has launched a €900 million auction scheme for green hydrogen imports. The idea of the so-called H2 Global mechanism is to procure the fuel on the world market and sell it within the EU to the highest bidder, and it is organised by the business-led H2 Global Foundation, said the economy ministry.
Through an intermediary – the subsidiary HINT.CO – the foundation concludes long-term purchase agreements for green hydrogen and its derivatives, such as ammonia, methanol, and sustainable aviation fuel, to give hydrogen producers planning and investment security.
On the other side, it concludes sales contracts in Europe. H2 Global buys the products at the lowest possible prices and then sells them on to the highest bidder. As this is expected to be a money loser, the government will cover the difference with subsidies.
The first deliveries of these sustainable hydrogen derivatives to Germany and Europe are planned for the end of 2024. The economy ministry said the government plans to make a further €3.5 billion available for new bidding rounds with durations up to 2036. The last coalition government had promised the €900 million for the auction scheme.
H2 Global is a foundation set up by German industry players such as Siemens Energy, Linde, Nordex or ThyssenKrupp to help the green hydrogen market ramp-up.
In the fight against climate change, hydrogen made with renewable electricity is increasingly seen as a silver bullet for sectors with particularly stubborn emissions, such as heavy industry and aviation.
