Applying for H2Global’s Second Tender Phase

Germany plans to base its future energy supply on renewable sources, with renewable and low-carbon hydrogen playing a pivotal role. To support the development of the hydrogen industry and its expansion into international markets, the H2Global mechanism was established in 2021. This mechanism employs a double-auction model, which involves purchasing renewable and low-carbon hydrogen and its derivatives from abroad at competitive global prices through long-term contracts and then reselling them in Germany or to the EU’s highest bidder. As part of this initiative, the government-owned entity HINT.CO acts as an intermediary, handling the purchase and sale of Power-to-X products, including renewable hydrogen-based ammonia, methanol, and e-kerosene.

H2Global’s first tender was allocated in summer 2024. Out of 22 companies competing, Fertiglobe (an ADNOC and OCI collaboration) was selected as the winner of the first ever ammonia tender with its EBIC plant in Egypt. As a result, Fertiglobe will benefit from a long-term contract under which they promised to deliver 397,000 tons of RFNBO ammonia to the Port of Rotterdam between 2027 and 2033. Fertiglobe’s offer, priced at 1000 EUR/ton, highlights the increasing competitiveness of the RFNBO market, with prices that are even more competitive than those found in the Innovation Fund Auction earlier this year.

Hinicio is proud to have contributed to the success of Fertiglobe in the H2Global tender by supporting in the preparation and strategic approach of the application file for the tender’s first application phase and having been providing a sustainability compliance assessment of their RFNBO ammonia.

Long-term visibility on the off-take is often the major blocking point for achieving FID. Instruments like H2Global provide project developers with the necessary certainty to make their projects bankable and reach FID. Success in the H2Global tender will allow developers to make their projects a reality and hit the market rapidly, benefiting also from first mover’s advantage.

With an experienced team that combines leading techno-economic hydrogen expertise and an excellent understanding of EU regulations, auctioning, and funding programs—along with the support we provided to Fertiglobe —Hinicio is your preferred partner for the next phase of the tender.