German and EU officials call on member states to join hydrogen purchasing scheme – media

Germany’s economy minister Robert Habeck and the European Commissioner for energy Kadri Simson have called on EU member states to join the ‘H2 Global’ initiative in a bid to strengthen the bloc’s hydrogen purchasing power, reports Handelsblatt. In a joint letter, seen by the newspaper, Habeck and Simson urged member states to get involved in the initiative, which Germany set up to help the ramp-up of the green hydrogen market. The idea is to bundle the buying power of EU states to procure the fuel on the world market. Under H2Global, green hydrogen or derivatives are purchased abroad through auctions from the bidder asking for the lowest price, and resold in Europe to the highest bidder, also via auctions. Government funds will be used to compensate for the difference between the purchase price of the hydrogen and the domestic sales price. Habeck and Simson wrote that all member states could benefit from the initiative, and joint auctions could serve as a signal to hydrogen producers that a strong European market is emerging, the business daily reports.

Supporters of the initiative say that Europe must act as a true green electricity and hydrogen union to order to stand its ground in a competitive world that’s moving towards climate neutrality. “Although the European Commission is still pursuing the establishment of a European Hydrogen Bank, in practice H2Global is much further along and is becoming the main pillar in the development of hydrogen supply relationships,” Handelsblatt reports. The first auction for green hydrogen imports under the H2Global scheme was launched at the end of 2022. Hydrogen made from renewable sources is seen as essential for the path to climate neutrality by 2045, especially to decarbonise industries such as steel, chemical and aviation.