Australia and Germany signed an important agreement today in Brisbane, Australia, to deepen their cooperation and jointly support new supply chains for renewable hydrogen and its derivatives. To this end, a H2Global financing window of €400 million will be established to bring European buyers and Australian producers of renewable hydrogen together through auctions. In the joint declaration of intent to negotiate a bilateral H2Global auction window, both governments agreed to share the costs equally.
The two countries have also agreed to expand their existing Energy Partnership into an Energy and Climate Partnership to advance joint work on climate action, energy efficiency and energy security, and to expand cooperation on trade in renewable hydrogen. Two letters of intent were signed today in Brisbane by Australia’s Minister for Climate and Energy, Chris Bowen, and State Secretary Anja Hajduk.
A joint H2Global window will give Australian manufacturers the opportunity to export to some of the world’s largest renewable hydrogen markets, including Germany, build new green supply chains to Europe and support a future Made in Australia. Purchasing auctions for green hydrogen products are an important step in transforming Germany as an industrial location, achieving our climate goals and securing sustainable jobs in Germany.
Robert Habeck, Federal Minister for Economic Affairs and Climate Protection:
“Germany and Australia are pioneers on the path to a sustainable industry and society. The energy transition as a key pillar of climate protection and international cooperation enable us to find fast, safe and affordable solutions to the challenge of climate change. Today’s signing of the Energy and Climate Partnership and the agreement on bilateral H2Global auctions are a significant step forward in our shared commitment to address these challenges of our time. This partnership is not just a declaration, but a path to tangible measures that will strengthen our economies and support the global transition to net zero energy consumption. We are convinced that the Energy and Climate Partnership will offer numerous opportunities for fruitful private cooperation. And we are confident that joint hydrogen auctions under H2Global will stimulate the market and provide the much-needed price signals.”
Chris Bowen Minister for Climate Change and Energy Australia:
“Renewable hydrogen is key to Australia’s export prosperity in the 21st century. The world needs it. We can make it. And we can supply it to our partners, or use it in Australia to produce green products, chemicals and fuels for export around the world. Australia has the sun and wind to become a renewable energy superpower, and a hard-earned reputation as a reliable energy supplier. A strong international hydrogen market supports our shared industrial decarbonisation and promotes energy security in both Australia and Germany. We are fortunate to be able to work so closely with like-minded partners on this historic initiative. These negotiations under the H2Global mechanism and the expanded partnership with Germany will enable us to jointly seize the opportunities of hydrogen and help realise Australia’s potential as a renewable energy superpower.”
The H2Global program works by buying green hydrogen products at the lowest possible price on the world market and selling them to the highest bidder in Germany or the EU. The costs of the difference between the (expected higher) purchase price and the (lower) selling price are offset by the subsidies provided under H2Global.
The Federal Government expects hydrogen demand in Germany to reach 95 to 130 TWh per year by 2030 in order to achieve decarbonisation
in industry. Even after that, demand will continue to rise, with more than half of it expected to have to be imported. The aim of the funding measure is to create the necessary price signals for sustainable hydrogen products, thereby supporting the market ramp-up and ultimately bringing supply and demand together, both in terms of quantities and prices. At the same time, investments should be triggered on both sides.
For more information about the H2Global program, visit h2-global.org.
