H2Global Foundation Pioneering Renewable Hydrogen Market in Germany
Key Ideas
- H2Global, through its investment vehicle Hintco, is bridging the gap between renewable hydrogen production and purchase prices by conducting tenders for import and resale of green hydrogen products.
- The foundation aims to create a self-sufficient market for renewable hydrogen by financing the cost difference between suppliers and off-takers, without the need for long-term subsidies.
- Hintco recently completed its first import tender round, awarding a contract for renewable ammonia to an Egyptian company and is now preparing for the second round with funding totaling up to EUR 3 billion.
- The upcoming tender includes regional lots backed by the German state and a global lot jointly funded by Germany and the Netherlands, with projects required to meet specific renewable energy and sustainability criteria.
The H2Global foundation, based in Hamburg, Germany, is driving the advancement of the renewable hydrogen industry by serving as a market maker to tackle the challenges faced by the sector. The foundation's investment arm, Hintco, has initiated a process of conducting tenders for the import and resale of green hydrogen products to address the pricing disparities between suppliers and purchasers.
H2Global's strategy involves purchasing hydrogen at rates that are profitable for suppliers and selling it at prices acceptable to buyers to stimulate market growth. By covering the cost differential, H2Global aims to create a sustainable market that does not rely heavily on subsidies in the long run. The foundation has secured substantial funding, primarily from the German government and additional contributions from countries like Australia, Canada, the Netherlands, and private supporters.
Recently, Hintco completed its first import tender round, awarding a contract for renewable ammonia to an Egyptian company. The foundation is now gearing up for the second round of tenders, with an estimated funding of up to EUR 3 billion. The upcoming tender will include regional lots supported by Germany and a global lot jointly financed by Germany and the Netherlands.
Projects participating in the tenders need to meet stringent requirements, including qualifying as renewable fuels of non-biological origin and fulfilling sustainability standards. The bidding process involves negotiations on technical terms, with final contracts expected to be based on a weighted evaluation of pricing and supply volume offers.
H2Global's proactive approach towards fostering a thriving renewable hydrogen market in Germany showcases a positive outlook towards the future of green energy and sustainability.