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Green Hydrogen H2 News

Germany needs green hydrogen by 2025

Arnes BiogradlijaBy Arnes Biogradlija15/09/20222 Mins Read
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The German government is supporting purchase agreements for the export of green hydrogen and its byproducts. Deutsche Bank and Siemens are both founders. These hydrogen offtake contracts’ procedures are currently being procured, and delivery is expected in 2025.

There is an immediate demand for market expansion, thus money is not really an issue. Germany is presently engaged in the due diligence stage of three or four actual projects. and continues to search for pilots in less developed areas because it must start somewhere. These are the first substantial project financing deals.

Compared to the market, each project’s volume is small. These quantities are therefore negligible in comparison to the total amount of trading for market players who are accepting contracts.

In Australia, it seems like a new hydrogen project is being launched every week. Because individuals don’t take into account factors like deep sea port needs and infrastructure, at least half of them will wind up in the trash.

An investment in education must be made right away, working with colleges to create the large workforce needed for the hydrogen industry of the future.

The three or four projects that Deutsche Bank is considering sponsoring are not in Australia. The Middle East, Scandinavia, Southern Europe, and North America are where they are located. These initiatives make up a small portion of all those currently being funded proposals.

On the German and Australian sides, the well-known research organizations CSIRO and Fraunhofer (Institute) respectively played a significant role. German technology is also quite well-established in Australia.

From an Australian standpoint, the Asian market makes a lot of sense geographically. But as China, India, and now Japan is returning to nuclear power, Australia is beginning to second-guess its position.

An offtake market in Europe would be highly beneficial. Germany will also buy hydrogen from Australia.

In the next ten years, Germany’s need for hydrogen will treble, and 80% of that demand will be met by imports. There won’t be enough hydrogen supply to meet the demand because the cake is large enough. Australia can definitely contribute. Australia can open a trading channel if it moves quickly enough to develop enough green hydrogen.

Beyond the conventional ideas of who controls the oil, the hydrogen sector will bring forth a whole new trading system in the future.

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