H2Global launched its second round of green hydrogen auctions
The focus on Asia in the second H2Global green hydrogen auction round highlights the region’s potential to become a significant supplier of renewable hydrogen.
H2Global has launched its second round of green hydrogen auctions with a specific focus on Asia.
As stated by H2Global, the region has the potential to become a significant supplier of renewable hydrogen and its derivatives to the European Union. This $3.1bn (£2.5bn) tender adopts a dual strategy, conducting separate auctions across the Asia region.
The second round introduces a regional auction system to ensure diverse hydrogen imports allowing for a global reach.
Asia and regions like North America, South America, Australia, and Africa will participate in regional auctions.
Timo Bollerhey, CEO of Hintco and Co-Founder of H2Global, stated: “By fostering international partnerships and leveraging combined investments, we are setting the stage for robust supply chains and scalable hydrogen solutions that will pave the path towards creating green markets.”
Funding Contributions
- Germany and the Netherlands are financing the auctions under a joint initiative.
- Germany has committed €2.7 billion ($2.9 billion), while the Netherlands has allocated €300 million ($326 million).
Hintco, the implementing arm of H2Global, will act as an intermediary, ensuring fair pricing by connecting non-EU producers with European buyers.
Competitive tenders will award contracts to the lowest sellers and highest buyers, with government funding bridging the cost gap, ensuring long-term purchase agreements for up to 10 years, supporting the stability of green hydrogen markets.
H2Global’s second auction round underscores the necessity of a global approach to tackling climate change. The initiative aims to establish robust supply chains for renewable hydrogen by fostering partnerships between Asia and Europe.
The second round of H2Global auctions highlights Asia’s pivotal role in the global energy transition.
By enabling targeted procurement and fostering international collaboration, this initiative will enhance green hydrogen production and establish a sustainable, zero-emission future for future generations.
