€900M to boost green hydrogen market

Hydrogen

Germany – The first H2Global tender process was started by HINT.CO GmbH (Hintco) to purchase green ammonia for import into Europe.

Soon after, the green methanol and e-SAF tenders will be released. The mission of H2Global is to use a creative and effective funding method to hasten the global market ramp-up for sustainable hydrogen products.

This effort is supported by 900 million euros from the German Federal Ministry for Economic Affairs and Climate Action (BMWK), with additional financing already set aside for 2023.

The manufacture of the hydrogen derivatives is required to occur outside of EFTA and EU member states. A competitive international bidding process will determine the price. The long-term purchase contracts have a ten-year term. The first shipments of these environmentally friendly hydrogen derivatives to Europe are anticipated for the end of 2024 or the beginning of 2025. This is the first international procurement process of its kind. ‍

The funding

In order to enable investment security, which has thus far been lacking, the funding instrument will finalize long-term purchase agreements with specified conditions. In accordance with the funding instrument, Hintco makes purchases by using a competitive bidding method to get the best deal. Short-term sales agreements will be made with the highest bidder on the demand side. Public money is used to make up the anticipated price difference.

Tagged
Wim Raaijen
I am a creative publisher, editor in chief, writer, vlogger and moderator with a journalistic and philosophic based view. Trying to re-invent the concept of publishing, based on platforms and partners, instead of separated media and advertisements. I am interested in industrial subjects like transition, sustainability, safety, energy efficiency, innovation and responsibility.