Germany commits €588m to H2 tender agreements with Australia and Canada

The tender agreements follow previous declarations of intent signed in 2024 by the three countries, allowing for a connection between non-EU producers and EU purchasers.

Germany’s Federal Ministry for Economic Affairs and Climate action (BMWK) has officially committed up to €588m (£496m) for two bilateral H2Global tender agreements with Canada and Australia.

The announcement was made via Hintco, the subsidiary of Hamburg-based H2Global.

Total tender volume for Australia and Canada is expected to be up to €1.2bn (£981m), complementing BMWK’s fund allocation.

Germany’s fund commitment follows previous declarations of intent, which were signed in 2024 by all three countries.

H2Global, an initiative established by the German government in 2021, enables the imports of sustainable hydrogen products into the country in addition to supporting the use of green H2 in Europe.

Timo Bollerhey, CEO of Hintco and co-founder of H2Global, commented: “At a time of increasing uncertainty, Germany’s firm commitment to its bilateral tenders with Canada and Australia is encouraging, showcasing how governments can together leverage innovative instruments such as H2Global to tackle climate change.“

According to Hintco, production will take place in the co-financing partner country, strengthening the diversification of the global production of clean hydrogen and its derivatives.

Once Germany secures state aid notification for each of the bilateral tenders from the EU Commission, Hintco says it is expected to provide information on the tender processes, eligible projects, and application timeline.

Last year, international energy firm E.ON said the ramp-up of the hydrogen economy in Germany “remains weak” and was still largely reliant on public money, with progress “mainly visible in the context of subsidies.”

Under the National Hydrogen Strategy, the target for German H2 imports is 76-96 TWh (terawatt-hour) per year by 2030.

This process follows an advancement in tender procedures over recent years. In 2022 Hintco announced its first tender for the procurement of green ammonia, with the aims of establishing itself as a player in the international market.