Australia and Germany commit EUR 400 million to joint H2Global auction
Brisbane, September 13, 2024 – Today, Australian Minister for Climate Change and Energy, Chris Bowen, and German State Secretary for Economic Affairs and Climate Action, Anja Hajduk, announced a major expansion in bilateral energy cooperation that included committing EUR 200 million each to a joint H2Global auction.
Both nations signed a Joint Declaration of Intent, agreeing to contribute a combined EUR 400 million to a bilateral H2Global tender. This initiative aims to address the cost-of-difference of renewable hydrogen and its derivatives while establishing global supply chains for renewable hydrogen products.
Australia’s participation in the H2Global scheme is a groundbreaking step, marking the first agreement with a country south of the equator. The H2Global mechanism facilitates the import and export of clean fuels such as renewable hydrogen derivatives, including ammonia and methanol, from regions with cost-effective production to high-demand markets. This strategic partnership will enable Australia to establish renewable hydrogen shipping corridors to Europe and beyond, while providing Australian companies access to European markets for hydrogen and ammonia. In turn, Europe will benefit from competitively priced, clean energy products.
Susana Moreira, Executive Director of H2Global Foundation, welcomed the announcement: “H2Global is excited to be part of this landmark agreement between Australia and Germany. This collaboration marks a major step towards global markets for clean fuels, building on the success of the first H2Global pilot auction.”
Timo Bollerhey, CEO of Hintco and co-creator of H2Global, also applauded the move: “The H2Global mechanism now has EUR 5.83bn of funds in its pipeline to help create and scale clean fuel markets. The double-sided auction mechanism delivers price signals and investment decisions that accelerate the energy transition.”
The joint H2Global tender, will help bridge the price gap of renewable hydrogen and its derivatives produced in Australia and sold in Europe. The initial hydrogen purchase auction is scheduled to begin in 2025, with the first annual sales auction targeted for 2027/2028.