Germany provides €900 mio for green hydrogen ramp-up via new auction platform
Clean Energy Wire
The German economy ministry will support building up a market for green hydrogen with 900 million euros through the H2 Global Foundation, newly-set up by German industry players such as Siemens Energy, Linde, Nordex or ThyssenKrupp. Through the H2Global Foundation, green hydrogen or derivatives are purchased abroad under long-term contracts and resold in Germany via annual auctions. The economy ministry funds will be used to compensate for the difference between the purchase price of the hydrogen derivatives and the domestic sales price for some time and “thus provide an incentive for the market ramp-up”, said the ministry in a press release. Economy minister Peter Altmaier said the foundation is a "historic project" and a missing link for the success of the hydrogen strategy, which is considered one of the most important building blocks in climate policy. “The crucial thing is that we achieve the large-scale industrial ramp-up in the next few years,” said Altmaier. The tendering process for the green hydrogen derivatives will start this year. Deliveries of the hydrogen products are expected from 2024.
In the fight against climate change, hydrogen made with renewable electricity is increasingly seen as a silver bullet for sectors with particularly stubborn emissions, such as heavy industry and aviation. However, costs for green hydrogen is still higher than for hydrogen made from fossil gas, so Germany and other governments aim to support the build up of the market to bring down prices.