EHB Winner Launches Green Hydrogen Offtake Auction
DH2 Energy launched an auction to secure offtake hydrogen from its European Hydrogen Bank- (EHB)-supported 35MW green hydrogen plant in Spain with the region’s gas futures market operator MIBGAS Derivatives.
The auction opened to all companies interested in buying the 1,700 tonnes of green hydrogen produced by the plant per year, for any use case, both nationally and internationally.
Planned to be undertaken in three phases by MIBGAS, after pre-qualification, bidders will undergo qualification and competitive stages, where the companies that present the best offers will be selected. Winners from the competitive round will enter negotiations with DH2 Energy in the hopes of leading to formal offtake contracts.
The DH2 project, named Hysencia, will use 35MW of electrolyser capacity, with 39MW of solar power and a 10MW grid connection to produce hydrogen. The plans were approved earlier this year, with operations expected to start in 2027. Having bid under the pen name Angus, DH2 secured funding for the project from the pilot EHB auction, with the developer set to receive €0.39/kg (€8.1m in total).
Marcos Lópex-Brea Baquero, DH2 Managing Director, said:
“This auction marks a milestone for the development of renewable hydrogen, and we are confident that it will help stimulate demand and advance the establishment of a stable market for renewable hydrogen.”
Despite promises made by both policymakers and prospective green hydrogen producers for low costs in the near future, high prices for green hydrogen have continued to deter potential offtakers.
Research by Rystad Energy estimated that despite the EHB subsidy and Spain’s low-cost renewable power, green hydrogen will still be priced at over $5/kg.
Hydrogen market in Austria
New document about hydrogen market in Austria was published in the November 2024 by the Canadian researches who are trying to find new markets to collaborate with. This is what they found.
Austria is one of the 27 member states of the European Union. Their gross domestic product (GDP) per capita is around $70,820. The economy is characterized as a free market economy with a strong social focus.
Austria is committed to international climate targets as well as proactive climate protection and energy policy. Key industrial sectors include food and drinks, mechanical and steel engineering, chemical and automotive, electrics and electronics as well as wood, pulp and paper.
Austria is strategically positioning hydrogen as a pivotal element in its energy transition, aiming for climate-neutral hydrogen production to decarbonize energy-intensive industries. The focus is on power-to-gas technology, utilizing surplus wind and solar power for hydrogen production and so-called sector coupling.
Austria’s hydrogen strategy outlines plans to build 1 GW of electrolysis capacity by 2030 (13,2 MW installed as of May 2023), replace fossil fuel-based hydrogen, and establish collaborative platforms like Hydrogen Partnership Austria (HyPA) and WIVA P&G for industry stakeholders and regional hydrogen initiatives.
Austria currently uses some 132,000 tonnes of hydrogen per annum. Most of the current consumption – which is mainly used for fertilizer production and refining – is based on natural gas, so-called “grey hydrogen”.
In addition to developing new areas of application, these quantities need to be replaced by “green hydrogen” (i.e. hydrogen produced through electrolysis of renewable energies) as a matter of priority within the next few years.
Austrian business landscape
- Austria is one of the 10 richest countries in the European Union with a strong purchasing power.
- Conditions for foreign investment are excellent given the high level of social security and political stability.
- Austria is identified as industrially strong and a hub for energy transport, providing international companies with opportunities to leverage the country’s industrial capabilities and infrastructure.
- Austria is the perfect testbed for a wide range of key solutions for a climate-neutral future powered by hydrogen.
- International companies entering the Austrian market can access funding opportunities.
- Leading Austrian companies investing in hydrogen are OMV, VERBUND, Salzburg AG (in German only), TIWAG (in German only).
Notable projects and developments
- Two “Hydrogen Valleys” are currently in development and will trial the creation of an integrated value chain – from hydrogen production and storage to distribution and consumption – under real-life conditions. Numerous partners from industry and research are collaborating on the project to drive forward efforts to develop a hydrogen industry in Austria.Footnote3
- The HyTruck project aims to have 2000 H2 trucks on Austrian roads by 2030 and a nationwide filling station infrastructure with electrolysis systems.Footnote4
- The project “Underground Sun Storage 2030”, led by RAG Austria, in Rubensdorf will test the seasonal storage of 100% green hydrogen in an underground natural gas storage facility under real conditions for the first time.Footnote5
- “MPREIS Hydrogen” is the leading project at the international level since it contains all elements of a regional green hydrogen economy with a first green hydrogen logistic including a PAE and hydrogen storage as part of the Demo4Grid European project (demonstration of power grid balancing services under real operating and market conditions).
