Germany has launched the first tender for green ammonia imports via its H2Global scheme.
Under the scheme, hydrogen derivatives will be purchased by government-affiliated intermediary Hintco under a ten-year contract at the lowest possible price. Volumes will then be auctioned to offtakers within the EU.
The first H2Global tender will import ammonia, although auctions for methanol and sustainable aviation fuels made with green hydrogen are set to open in the coming weeks.
Production must take place outside the EU and European Free Trade Association states, with first deliveries from tender winners expected by 2024 or early 2025.
€900mn – Budget for first H2Global tender
“We want to make Germany and Europe the leading market for green hydrogen,” says German climate and economy minister Robert Habeck, who has recently visited potential hydrogen exporters Namibia and South Africa.
The German government has set a budget of €900mn ($948mn) for this first tender, with €3.5bn earmarked for further auctions from next year. The EU has announced a similar initiative, the €3bn ‘hydrogen bank’, although details on how it will align with the H2Global scheme are yet to emerge.
German energy companies are already signing memorandums of understanding (MoUs) for green ammonia imports. Most recently, RWE announced plans to offtake 300,000t/yr of green ammonia from Namibian project developer Hyphen. And this summer, Uniper and Eon signed an MoU with Canada’s Everwind to import 1mn t/yr of green ammonia by mid-decade.
Ammonia import capacity is also scaling up. Industrial gases firm Air Products and energy trader Mabanaft announced an ammonia import terminal to be constructed at the port of Hamburg by 2026. RWE also plans to construct an ammonia import terminal at the port of Brunsbuettel by the same year.
Uniper has announced its intention to add ammonia import and cracking facilities at its Wilhelmshaven LNG import hub, although a firm date for construction has yet to be confirmed.
Author: Polly Martin