The Indian government has shared its concerns and suggestions with Germany over the European nation’s $985-million tender to import green hydrogen
BS Bhalla, Secretary, Ministry of New & Renewable Energy (MNRE), said the Ministry has taken up the issue with the Ministry of External Affairs (MEA).
“Domestic industry had some reservations with the German tender. We have taken this up with the MEA. Besides, India’s Ambassador to Germany is also following up the issue with the government there. I believe they are considering the suggestions we have made. The industry felt that some of the issues were slightly restrictive. We have pointed it out to Germany and they are looking at it,” he added.
Bhalla was speaking at a press conference organised by the MNRE and industry chambers CII on the upcoming international conference on green hydrogen being organised by India.
In December last year, Germany’s Federal Ministry for Economic Affairs and Climate Action launched the procurement procedure for the import of green hydrogen under the H2Global programme.
The H2Global auction process is the first global bidding procedure for the purchase of hydrogen and its derivatives. It will identify the world’s first market price for green hydrogen and its tradable derivatives.
Green hydrogen tender
In December 2021, Germany’s Federal Ministry for Economic Affairs and Climate Action approved a €900 million (around $985 million) funding instrument entitled H2Global. The idea is to purchase green hydrogen products cheaply on the world market and to sell them to the highest bidder in the EU.
The rationale is that the exercise will support the global market ramp-up of green hydrogen, while hydrogen exporters gain security for their investment decisions through long-term purchase contracts, and the importers gain access to green derivatives. The large purchase contracts incentivise investment in renewable energy and the production of hydrogen-based ammonia, methanol and sustainable aviation fuel (SAF).
At present, three tenders for procuring ammonia, methanol and electricity-based SAF are in the evaluation stage under the programme.
The first deliveries of these sustainable hydrogen derivatives to Germany and Europe are expected by end-2024.
In the 2023 federal budget, the German Government plans to provide a further €3.5 billion (around $3.84 billion) for new auction rounds to cover periods up to 2036.