EU Approves €3bn German-Dutch H2Global Scheme to Boost Green Hydrogen Imports

European Commission Greenlights €3bn Green Hydrogen Initiative

In a significant move to accelerate the adoption of green hydrogen in Europe, the European Commission has approved a €3bn German-Dutch H2Global scheme aimed at fostering renewable fuel imports from non-EU countries. This ambitious initiative is designed to purchase green hydrogen and its derivatives through a double-auction system and distribute them within Germany and the Netherlands, bridging the gap between global producers and European demand.

Supporting Global Electrolysis Capacity

The scheme is set to support the development of at least 1.875GW of electrolysis capacity worldwide, providing a much-needed boost to renewable hydrogen production. Funded by Germany (€2.7bn) and the Netherlands (€300m), the program will subsidize the cost gap between the purchase and sales prices of green hydrogen derivatives, ensuring cost-effective solutions for taxpayers.

How the H2Global Mechanism Works?

The H2Global system operates through a double-auction mechanism:

• Purchase Auction: Germany-based Hintco, the implementation arm of the H2Global Foundation, offers long-term purchase agreements (HPAs) to the lowest bidders, ensuring investment certainty for global producers.

• Sales Auction: Hintco sells the green hydrogen or its derivatives, such as ammonia or e-fuels, via short-term agreements (HSAs) to the highest bidders, maintaining market-driven pricing transparency.

  
  

The subsidies provided by the governments effectively bridge the cost difference, enabling a sustainable and competitive pricing model that balances both supply and demand.

Pioneering Market Transparency

Hintco CEO Timo Bollerhey highlighted the initiative's dual benefits: securing long-term agreements for producers while creating market signals for buyers. “We are simulating a Contract for Difference (CfD) mechanism but allowing the market to determine both purchase and sales prices,” he said. This approach reduces reliance on government guarantees and ensures dynamic market pricing.

The initiative also sends a clear message to global producers about European market trends, enabling them to assess whether their projects are financially viable based on real-time demand signals.

Promoting Renewable Fuels of Non-Biological Origin (RFNBOs)

The scheme strictly adheres to RFNBO criteria, including additionality, time matching, and geographic location. These criteria ensure that green hydrogen and its derivatives like ammonia, methanol, and e-fuels meet the EU’s sustainability standards.

A Step Towards Europe’s Green Future

The German-Dutch H2Global initiative aligns with the EU’s goals under the Clean Industrial Deal, addressing the rising demand for renewable fuels while contributing to significant greenhouse gas emission reductions. As EU competition commissioner Teresa Ribera remarked, “This €3bn scheme will create international value chains that substantially reduce greenhouse gas emissions.”

With the first sell-side auctions expected to commence in early 2026, the project marks a pivotal moment in Europe’s journey toward a sustainable and carbon-neutral economy.