H2Global funding instrument launches first tender procedure
Leipzig/Hamburg, December 8th, 2022 – HINT.CO GmbH (Hintco) launched the first H2Global tender procedure for the procurement of green ammonia for import into Europe. The tenders for green methanol and e-SAF will follow shortly. The goal of H2Global is to accelerate the international market ramp-up for sustainable hydrogen products through an innovative and efficient funding mechanism. The German Federal Ministry for Economic Affairs and Climate Action (BMWK) provides funding of EUR 900 million for this initiative, with further funding already earmarked for 2023.
The production of the hydrogen derivatives must take place outside the EU and EFTA states. The price will be set in a competitive international bidding process. The period of the long-term purchase agreements is 10 years. This is the first global tender procedure of its kind.
The H2Global funding instrument
The funding instrument will conclude long-term purchase agreements with fixed criteria to enable investment security, which has been lacking so far. Under the funding instrument, Hintco purchases products 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.
About Hintco
The H2Global instrument is implemented by Hintco, which is a subsidiary of the H2Global Foundation. According to the grant notice, Hintco is the recipient of the EUR 900 million in funding provided by the BMWK.
About the H2Global Foundation
The purpose of the non-profit H2Global Foundation is to promote environmental and climate protection. Donors are international companies. The foundation engages in various initiatives to promote the production and use of climate-neutral energy sources nationally and internationally.
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