Germany opens €900 million call for import of green hydrogen derivatives

Following the recent establishment of the world’s first financing platform for tailored financing of infrastructure for green hydrogen, Germany is now looking to award nearly €1 billion (€900 million) in funding for the import of hydrogen derivatives.

On 5 December, the Federal Ministry for Economic Affairs and Climate Protection (BMWK) launched the procurement process for the import of green hydrogen as part of the H2Global programme, the Hamburg-based foundation established in mid-June 2021 with sixteen companies as founders.

H2Global aims to competitively promote the ramp-up of green hydrogen and its derivatives on an industrial scale by buying the products and selling them to the highest EU bidder.

BMWK said it would like to use the €900 million funding to support projects in countries where green hydrogen and its derivatives can be produced inexpensively by establishing green technologies while meeting the growing demand for such products in Germany and the EU.

The procurement process is divided into three lots, with Lot 1 now seeking to award contracts for the import of green ammonia to Europe.

The awards for Lot 2 and Lot 3, which include green methanol and electricity-based sustainable aviation fuel respectively, will start soon, according to BMWK.

For this programme, green hydrogen derivatives are purchased from H2Global’s subsidiary Hint.CO at a competitive price with ten-year contracts.

The products will be delivered to a suitable port in Belgium, the Netherlands or Germany proposed by the bidder.

The planned start of the long-term purchase agreement to be awarded in the currently opened Lot 1 is 1 January 2024.

As per terms listed in the tender, in the offer phase, the bidder states, among other things, which minimum and maximum quantities of the product can be produced and delivered in the respective contract years 2024 – 2033.

The terms also state that the production of green hydrogen products must take place outside the EU and EFTA countries.

The deadline for the interested parties to submit their applications is set for 7 February 2023 at 18:00 local time.

Amid growing global energy crisis, Germany has been at the forefront of introducing new measures to ensure the security of supplies and support the development of renewables at the same time.

Last month, state-owned investment and development bank KfW, together with the Federal Ministry for Economic Cooperation and Development (BMZ) and the BMWK, announced plans to establish two new hydrogen funds with €550 million, forming the PtX Platform.

The platform encompasses the PtX Development Fund which will foster hydrogen investment in developing and emerging economies and the PtX Growth Fund which will contribute to accelerating the global market and infrastructure development for green hydrogen across all countries.

At the same time, Germany revealed the country’s first large-scale, green energy import terminal will be built in the Port of Hamburg.

The planned import terminal is to be located at Mabanaft’s existing tank terminal in the Hamburg port and aims to provide hydrogen to Germany in 2026.

It will be built by industrial gas supplier Air Products and Oiltanking Deutschland, a subsidiary of energy company Mabanaft at the location which offers strategic access to green ammonia from large-scale green hydrogen production facilities operated by Air Products and its partners around the world.

The intention is to convert the ammonia to green hydrogen via Air Products’ facilities in Hamburg, before distributing it to buyers locally and across northern Germany.

Moreover, Germany’s gas company VNG AG and French renewable energy producer Total Eren signed a cooperation agreement concerning the import of green hydrogen in the form of ammonia from Total Eren’s green hydrogen projects worldwide.

The agreement also covers the sale of hydrogen to the German and European markets from 2028 onwards.

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