Supply Contract, Purchase of Green Hydrogen Derivatives (Ammonia)

Project measures:

This tender is part of H2Global, an instrument for the competition-based promotion of the market ramp-up of hydrogen and its derivatives on an industrial scale, which are produced using electricity from renewable energy sources. The Federal Ministry for Economic Affairs and Climate Protection is providing funding of EUR 900 million for the H2Global instrument to support projects in countries where green hydrogen and its derivatives can be produced cost-effectively. Green technologies are to be established there and a contribution made to meeting the growing demand for green hydrogen and its derivatives in Germany and the EU. The tender will procure the hydrogen-based products

• green ammonia (Lot 1, project at hand),
• green methanol (Lot 2) and
• electricity based Sustainable Aviation Fuel (e-SAF) (Lot 3)

for import into Europe. The tenders for Lot 2 and 3 will start soon.

 

Brief Description of the Contract:

In order to provide incentives for investments, the H2Global funding instrument envisages, on the one hand, long-term purchase agreements (HPAs) to ensure planning and investment security for producers and, on the other hand, short-term sales agreements (HSAs) with purchasers to meet the European demand for sustainably produced hydrogen and its derivatives. The H2Global funding instrument envisages that HINT.CO will purchase the products at the lowest possible prices through a tendering process and subsequently sell them to the highest bidder. The difference in costs between the (expected higher) purchase price and the (lower) sales price is compensated by HINT.CO from the funding granted by the BMWK. The HPA to be awarded in the present procurement procedure (Lot 1) relates to the purchase of ammonia as a derivative of green hydrogen.