Australia-Germany green hydrogen program set for early 2026 launch
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The news: The Department of Climate Change, Energy, Environment and Water (DCCEEW) is working towards the launch of a EUR400 million ($716 million) green hydrogen investment program, co-funded with the German federal government, in the first-half of 2026.
Consultation on the design of the double-auction program opened on Tuesday, with green hydrogen as well as derivative products ammonia and methanol to be eligible for support.
The context: In September 2024, the Australian and German governments announced their intention to jointly fund a EUR400 million H2Global joint tender to accelerate the development of green hydrogen projects in Australia and build the supply chain for exports to Europe.
The H2Global double-sided auction scheme will be administered by not-for-profit The Hydrogen Intermediary Company (HINT.CO), which was set up with support from industry and the German government.
The joint tender builds on similar H2Global schemes aimed at bridging the gap between the cost of producing green hydrogen and the sale price being run for other regions.
DCCEEW is working towards the supply side auction, through which H2Global will sign hydrogen purchase agreements with prospective suppliers in the hopes of providing investment certainty, commencing in the first-half of 2026.
Under its current design, the purchase agreements are expected to be awarded in 2026 and will require that Australian green hydrogen producers be able to deliver to Germany by 2031.
Demand side auctions, in which H2Global will sign one-year hydrogen sales agreements, will take place at a later date.
Hydrogen produced from coal gasification or steam methane reforming coupled with carbon capture and storage technology will not be eligible for the program.
Consultation will close on the design of the joint tender will close on 30 September.
