Today’s establishment of the H2Global foundation by 16 renowned founding companies marks an important milestone in the international market ramp-up for green hydrogen. The H2Global Foundation is tasked with buying green hydrogen or hydrogen derivatives abroad and with re-selling these products at annual auctions. The purchases abroad are made on the basis of long-term contracts, thus giving businesses a secure basis for their planning and investment activities. The Federal Ministry for Economic Affairs and Energy is providing some €900 million to support this instrument by temporarily making up for the difference between the purchase price of the hydrogen derivatives and the sales prices at home, thus setting an incentive for a market ramp-up.
Marking today’s establishment of the foundation and the start of H2Global’s operations, Federal Minister for Economic Affairs and Energy Peter Altmaier said: “Our objective is to foster a swift market ramp-up for green hydrogen and its derivatives, thereby securing a long-term supply for green energy for Germany. This is made possible by the market-driven H2Global funding instrument. It is an outstanding example of how an innovative industry can thrive on a sustainable energy policy. H2Global will make an important contribution to a German technology sector that is both competitive and climate-neutral.”
The objective of H2Global is to support a quick global market ramp-up for green hydrogen and its derivatives. Sixteen renowned companies celebrated the establishment of the H2Global foundation today. The establishment of the foundation and the start of operations at H2Global also mark the implementation of another building block of the National Hydrogen Strategy by the Federal Ministry for Economic Affairs and Energy. The new and innovative H2Global instrument makes it possible to work with industry and highlight ways in which green hydrogen and its derivatives can be produced and exported in partner countries in a way that is both economically competitive and ecologically sustainable. The procurement procedure for green hydrogen derivatives is due to launch this year. The first deliveries of hydrogen products can be expected to take place in 2024.