Australia-Germany H2Global Program

The Australia-Germany H2Global Program involves a innovative contract for difference market mechanism, where grant funds provided by the Australian government along with funding from the German government will be used by a successful applicant (if any) to support eligible Australian producers of hydrogen products. The funding will offset the difference between the price paid to purchase hydrogen products from Australian producers and the price received from selling those products to German offtakers. A double auction mechanism called H2Global (the Project) will be used to establish long-term purchase contracts with renewable hydrogen producers located in Australia and short-term resale contracts with renewable hydrogen offtakers in Germany. Prices will be determined on both sides via sales auctions, i.e. the lowest bid prices for hydrogen production and the highest selling price are each awarded a contract. The Project will take place independently of Australian and German government funding bodies. Grant funding is not provided to the successful applicant for its own operations. Instead, funding flows through to support Australian hydrogen producers via the purchase and resale contracts established under the Project.