(Berlin/Hamburg) – The German foundation H2 Global has published the first round of tenders for the import of green hydrogen to Europe. The Federal Ministry of Economics (BMWK) is providing funding totaling 900 million euros for this purpose. “We want to make Germany and Europe the lead market for green hydrogen,” said Minister Robert Habeck. A year ago, the BMWK had already promised millions in support to the Hamburg-based organization founded in 2020.
Selling to the highest bidder in Europe
A double auction mechanism was developed for the project, which works according to the well-known “Contracts-for-Difference” (CfD) approach: the green hydrogen and its derivatives are purchased at the lowest possible price with 10-year contracts and then sold in Europe to the highest bidder . The Leipzig-based subsidiary Hintco GmbH acts as an intermediary.
It is to be expected that the purchase price is currently even higher than the sales price. The negative difference will be compensated for a limited time by grants from the Federal Ministry of Economics. The said 900 million euros are available for this. Long-term purchase agreements provide hydrogen exporters with security for their investment decisions and provide buyers with access to green Power-to-X (PtX) products such as hydrogen-based ammonia, methanol and sustainable aviation fuels (e-SAF).
Production outside EU and EFTA
The green hydrogen must be produced outside the EU and the four states of the European Free Trade Association (EFTA) Iceland, Liechtenstein, Norway and Switzerland. The prices for the imports are determined as part of a competition-based international bidding process.
The first deliveries of sustainable hydrogen derivatives to Germany and Europe are scheduled for the end of 2024. As part of the 2023 federal budget, the federal government plans to make a further 3,5 billion euros available for new bidding rounds with terms until 2036.
15 million for Linde project in South Africa
The Federal Minister for Economic Affairs gave the starting signal during a trip abroad in Johannesburg. There, Habeck handed over a funding notice of 15 million euros to Linde GmbH for the first phase of the HyShiFT project.
The company wants to build a 200 megawatt electrolyzer for the production of renewable hydrogen in Mpumalanga, South Africa. This will be used in an existing plant for the production of kerosene and power-to-liquid fuels. According to the Ministry of Economics, some of the hydrogen should be imported to Germany.
Photos
The industrial gas provider Linde is receiving funding of 15 million euros for a hydrogen project in South Africa. © Linde Engineering South Africa Pty Ltd.
Companies and consortia can use the procurement documents here recall.
