Ports are gearing up to start docking green ammonia to cover EU’s target 10 mln tons of green hydrogen imports by 2030. On December 8th, 2022 the first H2Global tender procedure for the procurement of green ammonia for import into Europe has been launched by HINT.CO GmbH (Hintco) a subsidiary of the H2Global Foundation. The purpose of the non-profit H2Global Foundation is to promote environmental and climate protection. The foundation is chaired by Uniper and Hamburger Hafen un Logistik AG. Among the donors are international companies like Linde, Air Liquide Siemens Energy and Air Products, also Gasunie and VOPAK, as well as private banks (Paribas, Commerz) have joined the initiative. Air Products and Associated British Ports (ABP) announced last August their intention to partner in bringing the first large scale, green hydrogen production facility to the UK. The facility would import green ammonia from production locations operated by Air Products and its partners around the world. This would be used to produce green hydrogen, which would decarbonise hard-to-abate sectors such as transport and industry. The Port of Rotterdam, who unlike the Port of Antwerp and Hamburg is not part of the donors of H2Global, announced on December 6, 2022 together with many of the same companies present in H2Global that its is spearheading a study to develop a large scale ammonia cracker in Rotterdam.
The German Federal Ministry forEconomic Affairs and Climate Action (BMWK), as announced at the last COP 27 in Egypt by chancellor Scholz, provides funding of EUR 900 million for the H2Global initiative, with further funding already earmarked for 2023. The production of the hydrogen derivatives must take place outside the EU and EFTA states. This will offer an opportunity for many countries to enter a new world energy market where they previously had no access to, led alone control. In this way green hydrogen could play an important role in ensuring that the world’s new clean energy order will be giving developing countries, with excess renewable potential, to develop their own clean energy system while using new economic opportunities.
The price of the first H2Global tender will be set in a competitive international bidding process and the period of the long-termpurchase agreements is 10 years. In addition it will conclude long-term purchase agreements with fixed criteria to enable investment security. Hintco will purchase the green hydrogen at the lowest possible price through a competitive bidding process. On the demand side, short-term sales contracts will be concluded with the highest bidder. The expected difference between the prices is compensated with public funding.The first deliveries of these sustainable hydrogen derivatives to Europe are planned for the end of 2024 or early 2025.This is the first global tender procedure of its kind.
More details on the tender:
Following the approval of the funding instrument under State aid rules by the European Commission on 20 December 2021, some first purchase contracts in the context of H2Global are to be concluded in 2022. Deliveries of sustainable hydrogen-based fuels to Germany and Europe are expected to take place from 2024.
Photo: courtesy Air Products, Ammonia plant with CCS, Arkansas
The CTC Network promotes the accelerated transfer of environmentally sound technologies for low carbon and climate resilient development at the request of developing countries.
