Australia, Germany launch joint H2Global auction

€200 each for long-term funding window

The governments of Australia and Germany have agreed to establish a bilateral H2Global tender, contributing €200 million each to a joint auction. The process will be similar to a recently-concluded pilot auction, where Fertiglobe was awarded €397 million over ten years for the import of renewable ammonia from Egypt to Rotterdam. Canada also recently launched a bilateral H2Global scheme, with a series of first-mover ammonia projects front-runners to receive funding for hydrogen transport across the Atlantic.

Australia is the first country south of the equator to agree to a joint H2Global funding window. The agreement will kick-start the establishment of a renewable hydrogen shipping corridor to Europe, based on the transport of hydrogen derivatives including methanol and ammonia. The initial auction is scheduled to begin next year, with annual auctions targeted to start from 2027/2028.

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.

Susana Moreira, Executive Director of H2Global in her organsation’s official press release, 13 Sept 2024

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.

Timo Bollerhey, CEO of Hintco and Co-creator of H2Global in his organsation’s official press release, 13 Sept 2024

Renewable hydrogen is key to Australia’s 21st century export prosperity. The world needs it. We can make it. And we can ship it to our partners, or use it to make green products, chemicals, and fuels in Australia to export to the world.

Australian Minister for Climate Change and Energy, Chris Bowen in the Department of Climate Change, Energy, the Environment and Water’s official press release, 13 Sept 2024

We are confident that joint hydrogen auctions under H2Global will kick-start the market and provide urgently needed price signals.

German Vice Chancellor and Minister for Economic Affairs and Climate Action, Robert Habeck in the Department of Climate Change, Energy, the Environment and Water’s official press release, 13 Sept 2024

In February 2023 the HySupply chain study jointly conducted by Germany and Australia found that Australian export projects need immediate assistance to scale-up from pilot phase to full operations, and that a suite of issues (including development of shared infrastructure at hubs) need to be addressed to enable a supply corridor between Australia and Europe. Funding was awarded to a series of enabling production projects and technology developers.