Germany Ramps Up Green Hydrogen

Important step for global hydrogen ramp-up

The results of the first bidding round for the import of green hydrogen under the H2Global programme are now available: between 2027 and 2033, at least 259.000 t of green ammonia will be exported to Germany. In total, this is more than ten per cent of Germany’s annual production. The production costs are EUR 811/t of ammonia, i.e. costs of less than EUR 4.50 per kg of green hydrogen.

When compared to current estimates and other initial auction results, it is clear that these are lower costs for green hydrogen derivatives. In addition, unlike other auctions, the prices under H2Global are based on binding purchase contracts. It is vital for the ramp-up of the hydrogen market that binding prices for green hydrogen are communicated in a transparent manner, as this creates price security. It further facilitates investment decisions to set up the production of green hydrogen as well as investment decisions on the buyers’ side to use green hydrogen or its derivatives.

Federal Minister for Economic Affairs and Climate Action, Robert Habeck, said: “The conclusion of the first purchase agreements for green hydrogen products is an important step towards transforming Germany as an industrial base, achieving our climate targets and safeguarding sustainable jobs in our country. The import of green hydrogen products significantly advances the ramp-up of the hydrogen market in Germany. German industry needs large quantities of green hydrogen and its derivatives for the decarbonisation of the economy, which requires imports from within and outside of Europe as well as domestic hydrogen production. The availability of affordable green energy, now also in the form of hydrogen, will continue to be an important factor for safeguarding our industry’s future. The successful auction within the scope of H2Global is the first step in this direction and further steps will follow soon.”

The H2Global programme makes an important contribution to global climate action. The contract in the first bidding window for ammonia has been awarded to the company Fertiglobe, which is based in the United Arab Emirates. The green ammonia imported under H2Global will be produced in Egypt. To this end, 273 megawatts of renewable energy production capacity are installed in Egypt. This will bring annual energy savings of 93.000 t of carbon emissions.

(Source: Federal Ministry for Economic Affairs and Climate Action Press Release)