Frequently asked questions

Here you will find answers to the most frequently asked questions about H2Global, Hintco and our tenders.
H2Global and Hintco
How is H2Global organized, and what are the differences between H2Global, Hintco, and the H2Global Foundation?
The term “H2Global” refers to the overarching concept behind the H2Global mechanism. Its primary goal is to support the development of green markets and mobilize both private and concessional capital for the clean energy transition.
At the heart of this approach is Hintco, the Hydrogen Intermediary Company, which is the trading entity that develops and implements the H2Global double-auction mechanism.
To allow Hintco to be set-up in independence from both government and industry, the non-profit H2Global Foundation was established in 2021. Hintco operates as a wholly owned subsidiary of the Foundation, but conducts the auctions independently.
The H2Global Foundation itself is dedicated to advancing climate protection by conducting research, organizing working groups, and advancing and promoting the H2Global mechanism through outreach activities.
Is Hintco / H2Global a German instrument?
No. Hintco is a global Green Market Maker, established independently from both governments and industry. Nevertheless, the German government has been the first and largest supporter of the H2Global mechanism to date. It was the first to provide funding to Hintco to cover the cost difference, playing a pivotal role in bringing the mechanism to life.
Other governments, both within and beyond Europe - such as the Netherlands, Australia, and Canada - have already committed or are planning to commit funds for dedicated H2Global tenders. Additionally, many countries are engaging with H2Global at various stages, from concrete implementation efforts and formal MoUs to collaborative knowledge-sharing initiatives, illustrating the instrument's growing global relevance and adoption.
Who determines how the H2Global instrument is being applied, e.g. hydrogen criteria, geography, etc.?
The provider of the funds determines the conditions under which Hintco receives financial support to offset the expected cost difference arising from its trading activities. These conditions are outlined in a grant agreement, specifying key parameters such as the hydrogen's "color" classification (or other criteria for defining clean hydrogen), the geographic focus, and any potential additional requirements.
The H2Global mechanism, along with Hintco, is designed to be highly flexible and adaptable - remaining "color-agnostic" in its approach. However, all terms and conditions must align with H2Global’s overarching commitment to promoting environmental and social sustainability while contributing to global climate action.
Is the H2Global mechanism a Contract for Difference (CfD)?
No, but there are similarities. A contract for difference (CfD) is a subsidy model where both positive and negative deviations from a fixed reference price are settled with the contractual partner. This approach is well-established in electricity markets. However, in the early, still-developing hydrogen market, reliable reference prices have yet to emerge, requiring a different approach.
Hintco, acting as a trader and intermediary, generates price signals through its double-auction mechanism. This allows governments, as funding providers, to use a similarly effective and cost-efficient tool as traditional CfDs to offset the cost difference. Additionally to revealing valuable pricing signals, Hintco’s innovative double-auction model facilitates tenure and volume transformation, enhancing market liquidity and providing a bankable counterpart for long-term offtake agreements.
As a global Green Market Maker, Hintco plays a critical role in supporting market development. Moreover, the price data published by Hintco is expected to establish tangible reference prices, which could, in turn, support the implementation of future mechanisms like CfDs.
Is Hintco / H2Global an instrument for hydrogen imports into Europe only?
No, the H2Global instrument is not limited to imports; it can also be applied to hydrogen production and offtake within Europe. Although the H2Global pilot tender was restricted to imports from outside the EU due to the specific programming of funds provided by the German government, the current joint H2Global tender, supported by Germany and the Netherlands, includes production within Europe as well.
In bilateral H2Global initiatives between Germany and countries like Canada and Australia, the offtake is planned to occur in Germany, while both exporting and importing governments contribute funds to cover Hintco’s expected cost difference.
Additionally, several governments outside the EU are exploring the possibility of using the H2Global instrument independently, without direct European involvement, to support their own hydrogen market development efforts.
Can the H2Global mechanism only be applied towards hydrogen?
No, the H2Global instrument is highly flexible and can, in principle, be applied to various products, technologies or commodity, in any region.
Its implementation depends on the terms and conditions set by the respective funding body - provided these conditions align with H2Global’s core commitment to promoting environmental and social sustainability and supporting climate action.
Hintco‘s tenders and auction process
How does the auction process work?
In its current application, the H2Global mechanism uses a double-auction approach, with Hintco tendering long-term purchase contracts (Hydrogen Purchase Agreements, HPAs) on the supply side and short-term sales contracts (Hydrogen Sales Agreements, HSAs) on the demand side. Given the hydrogen market's early-stage development, purchase prices are initially expected to be significantly higher than sales prices. This anticipated gap, referred to as the cost of difference between Hintco’s purchase costs and its demand-side revenues, is covered by a public subsidy.
By combining long-term supply contracts with short-term demand contracts, the mechanism provides continuous price signals, enhances market liquidity, and helps establish the foundation for a well-functioning clean hydrogen market.
What are lots within the different tenders?
Once the tender criteria have been defined by the funding provider, Hintco procures the products through individual tender processes, known as lots.
A single tender can consist of multiple lots, each with its own set of rules and specifications tailored to the characteristics of the product being purchased.
Does Hintco only auction one-year contracts on the demand side?
Short-term contracts on the demand side play a key role in ensuring the efficient use of concessional (governmental) funding, while fostering price transparency and market liquidity. For this reason, many lots in the current H2Global auctions will feature one-year Hydrogen Sales Agreements (HSAs). These short-term agreements are essential to establish H2Global reference prices and indexes, laying the groundwork for a more mature hydrogen market.
At the same time, some off-takers, particularly in certain sectors, may require volume security over a longer horizon but struggle with fixed-price exposures. To address these needs, the H2Global mechanism is exploring models that allow Hintco to enter into longer-term sales agreements by adding additional layers to the existing structure. Detailed concepts for such models are already being developed and foreseen for upcoming tender designs.
How does Hintco contribute to the bankability of projects?
Hintco enhances the bankability of projects by providing long-term price, market, and legal security. The long-term hydrogen purchase agreements (HPAs) enable predictable cash flows, an important pre-requisite to secure on- and off-balance sheet funding.
As a reliable contractual partner, Hintco is backed by a government grant decision, prominently referenced in both German and European hydrogen strategies. This backing provides producers with financial certainty.
How does the compensation of costs of difference work in practice?
As the trader and physical intermediary, Hintco is the sole recipient of public funds allocated within this support scheme. These funds are drawn by Hintco based on the actual cost-of-difference incurred, which may vary across HSA auctions due to fluctuations in the demand-price curve.
Importantly, in the current setup, funds are not provided to Hintco upfront. Instead, they are disbursed upon request when a price difference arises between the long-term, fixed purchase price Hintco pays to suppliers (under the HPA) and the short-term sales prices determined through demand-side (HSA) auctions.
The process works as follows:
- The HSA customer (offtaker) pays Hintco in advance of the delivery date.
- The producer delivers the product.
- Hintco draws the necessary funds from the fund provider under the grant agreement to cover any negative spread between the purchase and sales price (if applicable).
- Hintco pays the producer within the agreed payment terms.
How should the price signals be interpreted? What does the price include?
The price signals generated through H2Global tenders encompass several key components, including the product price, transportation costs, and applicable export and import duties. This comprehensive pricing structure ensures that all significant costs related to the delivery and handling of hydrogen products are taken into account.
The prices emerging from HPA auctions provide valuable initial insights into the market, helping to establish a baseline for understanding product pricing and associated costs.
Meanwhile, the price signals from HSA auctions are particularly useful, as they are updated annually, offering more frequent and regular insights. These signals play a crucial role in tracking ongoing market trends and providing a clearer understanding of the hydrogen market’s evolving dynamics.
Moreover, the price data published by Hintco is expected to establish tangible reference prices, which could, in turn, support the implementation of future mechanisms like CfDs.
What will future tenders look like?
The H2Global instrument is designed to be highly flexible, replicable, and scalable. Governments worldwide are actively engaging with H2Global to explore potential new tenders.
Several models are currently being developed, including:
- Joint Import Tenders: Two or more countries provide funding with the goal of each receiving a share of the final product. A notable example is the ongoing joint tender between the Netherlands and Germany.
- Bilateral Trade Tenders: Two countries collaborate to promote trade between a hydrogen-producing nation and a hydrogen-importing nation by jointly providing funding.
- Extended Sales Models: New models are being explored to enable Hintco to enter into longer-term sales agreements by adding additional layers to the existing structure. Detailed concepts for these models are already under development and are expected to feature in upcoming tender designs. However, short-term contracts on the demand side play a key role in ensuring the efficient use of concessional (governmental) funding, while fostering price transparency and market liquidity. For this reason, most lots in the current and near-term H2Global auctions will feature one-year Hydrogen Sales Agreements (HSAs). These short-term agreements are essential to establish H2Global reference prices and indexes, laying the groundwork for a more mature hydrogen market.
The H2Global instrument can be applied to any clean product, in any region, under conditions set by the respective funding provider - as long as these conditions align with H2Global’s core commitment to environmental and social sustainability and its mission to combat climate change.
Current tenders and how to participate
Who can participate in H2Global auctions, and how?
The H2Global auctions are divided into supply-side (HPA) and demand-side (HSA) auctions.
HPA auctions:
In principle, all companies or consortia that produce renewable hydrogen or derivatives such as renewable ammonia and methanol can participate in the supply-side auctions targeting these products.
The concrete eligibility criteria can differ between the various H2Global tenders and individual lots and will always be clearly outlined in the respective calls and tender documents.
If you are a producer of renewable hydrogen or derivatives, you can participate in the HPA auction in one of the ongoing or upcomiong tenders. For details, please check the HPA tender section.
HSA auctions:
For the H2Global pilot and second tender, companies intending to purchase renewable hydrogen or derivatives can participate in the demand side (HSA) auctions.
The HSA auctions for offtakers of renewable hydrogen or derivatives are scheduled to take place 12 months before the delivery of the first quantities of product auctioned in the respective HPA auction.
For more details, please check the HSA tender section.
Can projects start implementation prior the participation in an H2Global auction?
From a budgetary and state aid perspective, public funds must be used efficiently. This means that projects cannot benefit from a scheme if a final investment decision (FID) has already been made.
However, necessary preparatory activities - such as detailed technical and economic planning, or discussions with financial institutions and potential customers - are permitted and actively encouraged.
When will offtake (HSA) auctions take place?
HSA auction are scheduled to ocurr 12 months before the delivery of the first quantities of product auctioned in the respective HPA auction.
Approximately one year before the first HSA auction, interested bidders have to sign framework HSA contracts with Hintco - a pre-requisite for participating in the HSA auction. After the HSA auction, the awarded bidder(s) will enter into an individual HSA with Hintco.
Find out more in the HSA tender section.
Second H2Global Tender
What's new in the 2nd H2Global tender?
Key changes:
- Larger auction lots: The budget per lot has significantly increased.
- Broader participation options:Fourproduct-open lots, allowing delivery of ammonia, methanol and hydrogen and one global vector-open lot for the purchase ofhydrogen.
- Updated bid-scoringmechanism:
- 90% price + 10% optional additional quantity
- More flexibility:
- Lots allow hydrogen to be transported in different forms, such as ammonia or LOHC, if it is cracked/dehydrated back into hydrogen before delivery. (This applies to both the vector-open lot and the product-open lot for the delivery of hydrogen.)
- Ramp-up phase giving bidders the opportunity to offer early volumes on a non-firm basis (put-option for suppliers)
- Regulatory clarity from the get-go: Projects benefit from clearly defined RFNBO criteria under EU Regulation
- Outcome-oriented communication:Focused on projects and bids, aimed at providing early-stage engagement with potential bidders for better preparation., e.g. “roadshow”.
Can companies participate in the auction as part of a consortium or with subcontractors, and what are the requirements for such arrangements?
Yes. Companies may bid jointly as a consortium or involve subcontractors. If no joint venturecompany has been established, the consortium is treated as aninformal working group and must appoint a representative. The contract can later be assigned to a joint venture company. Subcontractors may support project execution and participate in contract negotiations if requested.
Are SMEs eligible to participate in the auctions, and what are the company-level requirements?
Yes, SMEs are eligible to participate, provided they meet the financial and technical requirements set out in the tender documents. This includes demonstrating sufficient financial capabilitiesand meeting the general eligibility criteria applicable to all bidders.
What criteria apply to smaller projects for participation?
Projects must supply RFNBO-compliant hydrogen or derivatives under EU regulations, have a minimum electrolysis capacity of 5 MW, and be able to deliver to Germany (or the Netherlands for the global lot).
Do bidders need to have secured additional offtakers for volumes not covered by the H2Global contract?
No, securing additionalofftakers is by no means mandatory.
Can a bidder make their offer subject to conditions precedent (e.g. permits, financing, additional offtake agreements)?
No. Bids must be unconditional and binding at the time of submission. This means all necessary internal approvals, permits, financing, and other project prerequisites must be secured in advance. Conditionalbidsare not permittedunderthe H2Global scheme.
Can a project participate in different regional lots?
No, a project cannot participate in different regional lots. Each project may only be submitted in the lot corresponding to its specific geographic location. The regional lots are tied to defined world regions—Africa, Asia, North America, and South America/Oceania—and projects must apply under the lot assigned to their respective production site.
Is it possible for a single project to participate in both the global and a regional lot?
Yes, projects may apply for both the global and a regional lot if they meet the respective eligibility criteria. Bids must relate to separate equipment or project phases to avoid double funding. Participation in one auction cannot depend on the outcome of another. (The same generally applies to possible participation in future auctions, such as the bilateral auctions currently being planned with Australia and Canada.)
What is pre-certification and why is it required?
Pre-certification confirms that a project complies with EU rules for renewable fuels of non biological origin (RFNBOs). It must be obtained through a voluntary scheme recognised by the European Commission. A list of recognised voluntary schemes can be obtained here.
Only top-ranked bidders are required to obtain and submit a pre-certification before contract award to ensure regulatory compliance. However, with their bids, all bidders have to submit a self-assessment of certification-readiness, detailing how they plan to meet the EU rules for RFNBOs.
Are there any rules on state aid cumulation?
It is possible to use other funding programs in addition to the H2Global scheme. But bidders must ensure that no double funding occurs. Support received under the H2Global scheme cannot be combined with other public funding for the same equipment, infrastructure, or project phase. A self-declaration confirming compliance with state aid cumulation rules is required during the application process.
Is import via another country allowed?
Yes, routing through other countries is permitted, but final delivery must take place in Germany (in Germany or the Netherlands for the global lot).
How is geographical correlation for RFNBO compliance handled in countries without bidding zones, such as those outside Europe?
Several projects outside Europe have already successfully obtained pre-certification by voluntary schemes recognised by the European Commission, increasing certainty of RFNBO compliance.
In the current auction, top-ranked bidders are required to present such a pre-certification before the contract is awarded.
With their bids, all bidders have tosubmita self-assessment of certification-readiness, detailing how they plan to meet the EU rules for RFNBOs.Contractual arrangements that define consequences in the event of failed certification are conceivable and may be part of the negotiation.
What happens if the delivery is delayed?
A delay can have different reasons, which have different legal consequences under the HPA (e.g. compensation for damages due to delay or suspension of contractual obligations in the case of force majeure). Suppliers are required to provide a performance bond to cover risks associated with non-delivery.
Could you confirm again that EU-based projects could participate in the Global Auction?
Yes, EU-based projects (outside Germany and the Netherlands) can participate in the Global Lot.
How is the Delivery Point defined in the regional lots?
The Delivery Point is the location where the transfer of title and risk for the product takes place - from seller to Hintco, and then uno-actu from Hintco to HSA Customer.
The Point of Delivery has to be located in the Terminal of Delivery, which has to provide access to at least three of the Accessible Means (inland vessel, railway train, road transport by truck, pipeline; for ammonia, an ammonia cracker can act as one of the three Accessible Means).
How and when are bid caps determined?
The price cap has not been finalized. As stated in the Price and Quantity Sheet, the indicated price cap is examplary and is intended to help participants familiarize themselves with the functionality of the price and quantity sheet. A final price cap will be published along with the invitation to submit a Request to Participate.
When will the tender documents for the Global Lot be published?
Hintco is currently finalizing the tender documents for the Global Lot. They will most probably be published after mid-May 2025.