The second round of H2Global auctions will take a dual approach, conducting separate auctions on different continents, says Hintco, the implementing entity of the H2Global Foundation.

Last month, the European Commission approved the second H2Global auction round with a total budget of €3 billion ($3.1 billion). Of this, €2.7 billion is committed by the German government, while €300 million comes from the Dutch government, Kallanish notes. 

In the second round, a part of the funding will be distributed through regional auctions in North America; South America and Australia; Asia; and Africa, Hintco said Tuesday. To prioritise the  diversification of hydrogen imports, the regional auctions will be “product-open,” meaning, bidders will be able to offer different varieties of hydrogen derivatives.

In contrast, the “global lot” of the round will be “vector-open”, targetting exclusively molecular hydrogen. 

“This dual approach ensures both product diversity and targeted procurement, addressing infrastructure readiness and supporting competitive pricing, critical issues highlighted during stakeholder consultations,” Hintco explains.

Set up by Germany’s economy and climate affairs ministry, the H2Global initiative uses a double-auction model to facilitate the purchase of hydrogen and its derivatives from lowest bidders outside the EU. Hintco will then sell it to the highest bidders in Europe.

“By fostering international partnerships and leveraging combined investments, we are setting the stage for robust supply chains and scalable hydrogen solutions that will pave the path towards the creation of green markets,” comments Timo Bollerhey, ceo of Hintco.

Germany is currently in discussions with the EC for additional funding allocations for European-specific tenders, Hintco adds. Further details of the auctions, including the timeline, eligibility criteria, and application process, is expected to be published in the first half of this year.