Germany Issues €360 Million Tender for Green Ammonia Imports from Outside EU
The last date to submit the bids is February 7, 2023
HINT.CO, a subsidiary of the H2Global Foundation, has launched the first tender for green ammonia imports from outside the European Union.
Green ammonia is the main input for producing green hydrogen.
The project’s estimated value is €360 million (~$380 million).
The last date to submit the bids is February 7, 2023. All bids must be submitted in German.
HINT.CO will use a double-auction program to buy green hydrogen or its derivatives from international producers through ten-year hydrogen purchase agreements (HPA) and then sell them to European customers who will bid on short-term supply contracts.
The hydrogen derivatives are expected to be imported into Europe by the end of 2024 or early 2025 and can be shipped to ports in Germany, Belgium, or the Netherlands.
The Federal Ministry of Economics and Climate Protection (BMWK) has approved €900 million (~$950 million) in funding for the H2Global initiative, which will be used to support projects in countries where green hydrogen and its derivatives can be produced cheaply.
The supply contracts will be awarded to the highest bidders, but if they fall short on the cost of the HPA, the difference will be met by HINT.CO using funds from BMWK.
To be eligible for this bid, participants should have produced at least 5,000 tons of hydrogen per annum in any of the three years out of the last five. They must have purchased or generated 100 GWh of renewable power in that period.
Bidders are required to have experience building and operating large-scale hydrogen or hydrogen derivative plants with a capacity of at least 5,000 tons per year.
They must also have experience in providing transport services for dangerous goods, and the classification of the goods must be in line with the globally harmonized system of classification and labeling of chemicals.
Additionally, the transport service must be provided by a ship that has transported at least 1,000 tons of hydrogen per year for a minimum of three years.
Bidders must have a consolidated turnover of at least €1.2 billion (~$1.27 billion) in the last three financial years from hydrogen or hydrogen derivation production.
If the bidder has been active in the market for less than three financial years, the average minimum annual turnover of €1.2 billion (~$1.27 billion) should be part of a strategic corporate plan.
The bidder’s transport and environmental liability insurance must include coverage of at least €10 million (~$10.56 million) each for property damage, personal injury, and financial loss.
The annual insurance compensation must be at least double the above sums insured. The insurance must not be older than six months before bid submission.
The bidder’s equity ratio should not have fallen below 20% in the last three audited financial years.
The bidders must have a rating of “good creditworthiness” confirmed by a third party and a rating of more than 250 from the Creditreform, a Ba2 or above rating from Moody’s, or a BB or better rating from the S&P Global Ratings or Fitch.
HINT.CO is also set to launch auctions for purchases of green methanol and sustainable aviation fuels soon.
The Bundesrat, the federal legislative council, had recently approved the law passed by the Bundestag (German Parliament) under which renewables must be at least 80% of the country’s power capacity mix by 2030.
In July this year, the European Commission approved €5.4 billion (~$5.7 billion) in funding for the ‘IPCEI Hy2Tech’ project to support research, innovation, and the first industrial deployment in the hydrogen technology value chain.