H2Global foundation set up in Hamburg
The German Ministry of Economics and Energy announced Monday (June 14, 2021) the establishment of the Hamburg-based H2Global foundation with 16 companies as founders. The foundation will purchase green hydrogen or derivatives abroad with long-term contracts for resale in Germany at annual auctions, a ministry statement said. Environment-friendly hydrogen is considered essential for achieving climate protection goals.
Long-term purchase contracts should give industry more investment security and ease planning. The ministry is putting EUR 900 million towards the foundation to balance the difference between the purchase price of hydrogen derivatives and the domestic sales price. This is likely to incentivize the market ramp-up. Commenting on the founding and launch of H2Global, Peter Altmaier, German Minister of Economics and Energy, said: "Our goal is to promote a rapid market ramp-up for green hydrogen and its derived products and thereby secure the long-term supply of green energy sources in Germany."
Forward-looking green hydrogen centre
Green hydrogen is produced exclusively from renewable energy and offers hope in the fight against climate change. Northern Germany with Hamburg as its industrial centre is the ideal, most forward looking centre of renewable energies and green hydrogen, according to the Organisation for Economic Cooperation and Development (OECD). The northern German states are currently promoting the rapid expansion of renewable energies and a green hydrogen sector along the entire value chain. The German government had selected 62 projects for funding in late May and earmarked EUR 520 million for green hydrogen projects in the Hamburg Metropolitan Region.