The H2Global funding program initiated by Germany focuses on the efficient promotion of a rapid market ramp-up of green hydrogen and hydrogen-based Power-to-X products. H2Global guarantees the market participants involved the investment security they need, especially in the start-up phase. The program also aims to establish hydrogen supply partnerships with countries that are able to produce green hydrogen cost-effectively and can thus ensure long-term security of supply for Germany and the EU through green hydrogen imports. This covers not only industrial and energy policy aspects, but also geopolitical issues in the development of the future global hydrogen economy.
The funding instrument H2Global intends to combine the supply and demand side with a double auction mechanism. These auctions are organized through an intermediary: HINT.CO. The main task of HINT.CO is, on the one hand, to conclude long-term off-take contracts with hydrogen producers/suppliers and, on the other hand, short-term supply contracts with hydrogen buyers. HINT.CO compensates the price difference between the supply and demand side by means of a "Contracts for Difference (CfD)-like support mechanism. This is intended to stimulate investments for green hydrogen production capacities abroad and optionally also in Germany, as well as to establish a global supply and value chain for green hydrogen. In this way, the current and future green hydrogen demand in Germany can be met by imports and at the same time the German economy can be strengthened by exporting energy and hydrogen production technologies.
The far-reaching importance of H2Global for Germany was underlined by former Economics Minister of Germany Peter Altmaier: “Our objective is to foster a swift market ramp-up for green hydrogen and its derivatives, thereby securing a long-term supply for green energy for Germany. This is made possible by the market-driven H2Global funding instrument. It is an outstanding example of how an innovative industry can thrive on a sustainable energy policy. H2Global will make an important contribution to a German technology sector that is both competitive and climate-neutral.”
This announcement is also confirmed by the current German Minister of Economics, Robert Habeck: "Green hydrogen plays a key role for the transformation of our economy. In future, we will need large amounts of green hydrogen, including imports in addition to hydrogen being produced in Germany. For this reason, we are now launching the international market ramp-up of the hydrogen economy and establishing lasting value and supply chains through the H2Global instrument."
On December 20, 2021, the EU Commission approved the grant of 900 million euros to support investments in green hydrogen production in third countries for the H2Global program under EU state aid rules.