Germany starts the first award procedure for H2Global
The Federal Ministry of Economics and Climate Protection has started the award process for the import of green hydrogen as part of the H2Global program.
Minister Habeck spoke on this occasion today during his trip abroad to South Africa in Johannesburg, since the H2Global instrument can also play an important role in market development in South Africa and Namibia, the stations of the Minister’s trip.
In December 2021, the BMWK approved a 900 million euro “H2Global” funding instrument. The idea of the project is to buy green hydrogen products cheaply on the world market and sell them to the highest bidder in the EU . This will support the global market ramp-up for green hydrogen. Long-term purchase agreements give hydrogen exporters security for their investment decisions and customers access to green derivatives.
Federal Minister Habeck : “We want to make Germany and Europe the lead market for green hydrogen. That is why we are giving the go-ahead today for a first tender for the import of green hydrogen worth 900 million euros. ”
To this end, hydrogen derivatives are purchased in a competitive process from an intermediary, HINTCO, at the lowest possible price with 10-year contracts. The large-volume purchase contracts encourage investment in renewable energies and the production of hydrogen-based ammonia, methanol and Sustainable Aviation Fuels (e-SAF). Production must take place outside the EU and EFTA countries. The prices for the imports are determined as part of a transparent, competition-based international bidding process.
The first deliveries of these sustainable hydrogen derivatives to Germany and Europe are planned for the end of 2024. The H2Global tendering process is the first global bidding process for the purchase of hydrogen and its derivatives. This is the first time the market price for green hydrogen or its tradable derivatives is shown worldwide.
As part of the 2023 federal budget, the federal government is planning to make a further EUR 3.5 billion available for new bidding rounds with terms up to 2036. The goal of establishing H2Global as a European instrument was also agreed in the coalition agreement and immediate climate protection programme. At the same time, the instrument is already open to other European countries.
