German Economy Minister Robert Habeck and European Energy Commissioner Kadri Simson have called on EU member states to join the H2Global initiative to strengthen the bloc's hydrogen procurement capabilities, reports Handelsblatt. In a joint letter seen by the newspaper, Mr Habeck and Ms Simson invited member states to engage with the initiative, which Germany has established to help scale up the green hydrogen market. The plan is to pool the purchasing power of EU countries to acquire fuel on the global market. Within the framework of H2Global, green hydrogen or its derivatives are purchased abroad in auctions from the bidder offering the lowest price, and then sold in Europe to the bidder who also offers the highest price in auctions. Government funds will be used to compensate for the difference between the hydrogen purchase price and the sales price on the local market. Mr Habeck and Ms Simson write that all member states could benefit from this initiative, and that joint auctions could serve as a signal to hydrogen producers that a strong European market is emerging, the newspaper reports.
Supporters of the initiative argue that Europe must act as a true green electricity and hydrogen union in order to remain competitive in a world shifting towards climate neutrality.
“Although the European Commission is still working to establish a European Hydrogen Bank, in practice H2Global has progressed much further and is becoming a key pillar in the development of hydrogen supply chains”, reports Handelsblatt. The first auction for the import of eco-friendly hydrogen under the H2Global scheme was announced at the end of 2022. Hydrogen produced from renewable sources is considered essential on the path to climate neutrality by 2045, particularly for decarbonising sectors such as steel and chemical industries, as well as aviation.
https://energy.ec.europa.eu/news/joint-statement-commissioner-simson-and-german-minister-habeck-energy-issues-2023-05-31_en
https://www.handelsblatt.com/politik/deutschland/transformation-habeck-und-simson-werben-fuer-europaweite-wasserstoff-beschaffung/29292614.html
https://www.cleanenergywire.org/news/german-and-eu-officials-call-member-states-join-hydrogen-purchasing-scheme-media