Australia, Germany plan joint EUR-400m H2Global auction

Australia and Germany have signed a joint declaration of intent to negotiate a AUD-660-million (USD 443.4m/EUR 400m) deal that will facilitate Aussie producers’ export of green hydrogen to Europe utilising the German government’s H2Global auction mechanism.

The agreement in question was signed in Brisbane on Friday by Australian Minister for Climate and Energy Chris Bowen and German State Secretary for Economic Affairs and Climate Action Anja Hajduk. It comes as the two countries have agreed to elevate their existing Energy Partnership to an Energy and Climate Partnership, a press statement says.

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The deal, to be equally funded by the two governments, will see the two sides cooperate on launching a bilateral H2Global tender, which, in turn, will enable Australia to establish renewable hydrogen shipping corridors to Europe and beyond.

The purpose of Germany’s H2Global mechanism is to facilitate 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. The pilot H2Global auction was initiated at the end of 2022 with three lots dedicated to green ammonia, methanol and e-sustainable aviation fuel (SAF). UAE-based fertiliser company Fertiglobe was selected as the winner of Lot 1 from a pool of five finalists.

“This negotiation under the H2Global mechanism and the expanded Partnership with Germany will allow us to work together to seize the opportunity in hydrogen, and help realise Australia’s renewable energy superpower potential,” minister Bowen stated.

The Australian Hydrogen Council welcomed this development.

“Over the past two days, we have heard from hydrogen developers about the barriers to progressing hydrogen projects in Australia, and one challenge is demand. Participation in the H2Global scheme formally secures a place for Australian producers to be part of the EU’s targets for import of clean molecules," Fiona Simon, CEO of the Australian Hydrogen Council, stated.

The announcement of this partnership was made the same day Australia released its updated National Hydrogen Strategy.

(AUD 1.0 = USD 0.672/EUR 0.607)