Exciting news for clean energy cooperation between Germany and Australia.
The two countries will contribute EUR 400 million to a joint H2Global auction, aiming to accelerate global trade and market uptake of renewable hydrogen and its derivatives.
What is H2Global auction?
H2Global Foundation desgined a double-sided auction platform where Hintco (a subsidiary of H2Global acting as the contractual body) purchases cost-competitive renewable hydrogen and e-fuels from global producers, and then sells to buyers willing to pay the highest price.
Since green molecules are more expensive than grey ones, the gap between the purchase cost and sales price will be covered by public funding. Two Key Contracts in the H2Global auction:
- Hydrogen Purchase Agreement (HPA): A long-term offtake agreement between H2Global (via Hintco) and suppliers.
- Hydrogen Sales Agreement (HSA): A short-term contract where Hintco sells green hydrogen to end-users.
What’s next?
The new announcement marks a significant breakthrough following H2Global’s awarding of a €397 million contract in July for the import of green ammonia from Egypt.
The initial hydrogen purchase auction for Australian producers is scheduled for 2025, with the first hydrogen sales auction expected in 2027/2028.
