Germany to support 500 MW electrolyzers abroad with $1.1 billion

Germany's H2Global green hydrogen import initiative aims to establish 500 MW of electrolysis capacity outside the EU with Eur900.00 million ($1.10 billion) of funding support, the country's energy ministry said June 14.

The initiative, part of Germany's Eur2 billion hydrogen abroad strategy, would secure long-term hydrogen supply contracts via annual auctions, with funding approved to 2030, it said.

First cargoes of hydrogen or derivatives such as ammonia were expected from 2024.

Energy minister Peter Altmaier named six potential exporters (Saudi Arabia, Canada, Australia, Russia, Ukraine and Chile) with whom he had had talks in recent months.

Specific auction details would be provided before German elections in September, a spokesman for H2Global said.

Founding members of the initiative include Siemens Energy, Thyssenkrupp, VNG, Deutsche Bank, Salzgitter, Uniper, Hamburger Hafen und Logistik, Neuman & Esser, Reederei F Laeisz, Viridi RE, Enertrag, Nordex, Green Enesys, MAN Energy Solutions, Hydrogenious LOHC and Linde.

One year on from Germany's hydrogen strategy, Altmaier said the national target of 5 GW electrolysis capacity by 2030 would be achieved or exceeded, but would only account for around 40% of demand.

Twin auctions

The H2Global concept involves HINT.CO (Hydrogen Intermediary Network Company) tendering for Hydrogen Purchase Agreements (HPAs) and Hydrogen Service Agreements (HSAs).

The cost gap between these two agreements is to be bridged via Contracts for Difference-style agreements, accelerating development of large scale electrolyzer projects and providing imports at market-reflective prices.

The gap would shrink over time as the global hydrogen market developed, Altmaier said.

S&P Global Platts assessed the cost of renewable hydrogen (PEM electrolysis with capex) at Eur5.60/kg on June 11, the most expensive of its cost-based hydrogen assessments in Europe.

The assessment was based on Dutch front-month electricity prices above Eur70/MWh.

Altmaier said research showed in the best locations around the world, wind and solar could generate electricity at around Eur10/MWh. Transport would add only a small additional cost to the hydrogen price, he said.