In a move to strengthen its support for the development of green hydrogen, Germany has announced plans to combine its H2Global funding scheme with the newly proposed European Hydrogen Bank.
This initiative aims to accelerate the global adoption of green hydrogen and promote investment in climate protection. Economy Minister Robert Habeck and European Commissioner for Energy Kadri Simson discussed the collaboration during their visit to Salzgitter AG’s hydrogen-based steel production project in Lower Saxony.
The H2Global project, launched by the German government in 2021, employs a unique “double auction” mechanism to expedite the market expansion of green hydrogen worldwide. Through this approach, hydrogen or its derivatives are procured at competitive prices from the global market and sold to the highest bidder within the European Union.
Simultaneously, the European Union is implementing its own hydrogen subsidy scheme with the objective of enhancing the competitiveness of clean hydrogen compared to fossil fuel-based alternatives.
To further bolster the joint efforts, the German Ministry of Economy has indicated that the H2Global foundation, in collaboration with the European Hydrogen Bank, will establish a common European auction accessible to all member states. This initiative seeks to make a significant contribution to international hydrogen imports, although further details have not been disclosed at this stage.
The alignment between the H2Global funding scheme and the European Hydrogen Bank signifies a coordinated approach to drive the transition towards green hydrogen. By combining resources and expertise, Germany and the European Union aim to create a robust framework that encourages investment, research, and development in the field of clean hydrogen.
Green hydrogen, produced through renewable energy-powered electrolysis of water, has emerged as a promising solution to decarbonize various sectors, including industry, transportation, and heating. Its potential lies in its ability to store and transport renewable energy, serving as a crucial element in achieving ambitious climate goals and reducing greenhouse gas emissions.
By leveraging H2Global and the European Hydrogen Bank, Germany, and the EU aspire to establish a strong foundation for the widespread use of green hydrogen. The integration of funding mechanisms and the collaboration among member states will facilitate the scaling of green hydrogen projects, attract private investment, and drive technological advancements in the sector.
