Australia and Germany have signed an historic deal to deepen cooperation on new green hydrogen supply chains via € 400million (€660 million) H2 Global funding window to guarantee European buyers for Australia’s renewable hydrogen producers.

It comes as the two countries agreed to elevate their existing Energy Partnership to an Energy and Climate Partnership, advancing joint work in climate action and cooperation, energy efficiency, the net zero transition and energy security, along with expanded cooperation on renewable hydrogen trade.

The Joint Declaration of Intent to negotiate the @400 deal, equally funded by both Governments, would form part of the German Government’s H2Global auction mechanism.
It was signed by Australian Minister for Climate and Energy Chris Bowen and German State Secretary for Economic Affairs and Climate Action Anja Hajduk in Brisbane today.
A joint H2Global window will give Australian producers the opportunity to export to some of the world’s largest renewable hydrogen markets, including Germany, establishing new green supply chains towards Europe and supporting a Future Made in Australia.

Buying green hydrogen products through import auctions is an important step towards transforming Germany´s industry, achieving our climate targets and securing sustainable jobs in Germany.

Robert Habeck, Minister for Economic Affairs and Climate Action:

"Germany and Australia lead the way towards a future-proof industry and society. The energy transition as a main pillar of climate action coupled with international cooperation enables us to get to fast, secure and affordable solutions for the challenge of climate change. Today's signing of the Energy and Climate Partnership and the declaration for bilateral H2Global auctions marks a significant step forward in our shared commitment to addressing those challenges of our time. This partnership is not just a declaration; it's a pathway to tangible action that strengthens our economies and supports the global transition to net zero. We are convinced that the Energy and Climate Partnership will provide numerous opportunities for fruitful private collaborations. And we are confident that joint hydrogen auctions under H2Global will kick-start the market and provide urgently needed price signals."

Chris Bowen, Australian Minister for Climate Change and Energy:

“Renewable hydrogen is key to Australia’s 21st century export prosperity. The world needs it. We can make it. And we can ship it to our partners, or use it to make green products, chemicals, and fuels in Australia to export to the world. Australia has the sun and wind to be a renewable energy superpower, and a hard-won reputation as a trusted energy supplier. A strong international hydrogen market supports our shared industrial decarbonisation and supports energy security in both Australia and Germany. We’re fortunate to be able to collaborate so closely with like-minded partners on this historic initiative. This negotiation under the H2Global mechanism and the expanded Partnership with Germany will allow us to work together to seize the opportunity on hydrogen, and help realise Australia’s renewable energy superpower potential."

H2Global works by buying green hydrogen products at the lowest possible price on the global market and selling them to the highest bidder in Germany or the EU. The cost of difference between the (expected higher) purchase price and the (lower) sales price are offset by the funding assistance provided under H2Global.

The German government assumes that Germany will need 95 to 130 TWh of hydrogen per year by 2030 in order to support decarbonisation in industry. Demand will continue to rise after that, and more than half of this will probably have to be imported. The aim of the subsidy programme is to reveal price signals for green hydrogen products, to support the establishment of a market for those products and to finally bring supply and demand together, both in terms of quantities and prices. At the same time, investments are to be triggered on both sides.
More information on the H2Global scheme can be found at h2-global.org.