Germany eyes geographical split in new H2Global round

Spanish Market: E-fuels, Hydrogen
12/06/24

The German government could disburse more than €3.5bn in support of renewable hydrogen production projects globally in a second round of the H2Global mechanism, according to a consultation document.

The country's economy and climate protection ministry is surveying industry participants on the proposed design and criteria for a second round of the scheme that is intended to bolster the ramp-up of global renewable hydrogen production. It committed €900mn for the scheme's first round and previously set aside more than €3.5bn for future auctions without specifying how the funds would be allocated, or across how many auctions.

The consultation document suggests the full amount could be made available in a single round.

The government's envisaged design shows financial support split across six lots (see table). Two would be for a 'vector open' category, which would entail final delivery of renewable hydrogen with suppliers free to decide which transport vector to use. This could allow for deliveries by pipeline, or for seaborne transport by vectors such as ammonia, liquid hydrogen or liquid organic hydrogen carriers (LOHCs). If transport vectors are used, suppliers would be responsible for converting the supply back to gaseous hydrogen.

One of these lots — which would probably include a €300mn funding contribution from the Netherlands — would be open for projects anywhere in the world, and one would be specifically for European projects. The first round was open only to projects outside the EU.

The four other slots are referred to as 'product open' and would be available to deliveries of renewable hydrogen or derivatives, such as ammonia, e-methanol, synthetic methane or sustainable aviation fuels (SAF). These are split by projects in four geographical regions.

Delivery for all lots would be to points of sale in Germany or the Netherlands.

The H2Global scheme aims to close the gap between the costs of production and the price that customers are willing to pay. Specialised entity Hintco will buy renewable hydrogen and/or derivatives through 10-year contracts with suppliers and sell the products through one-year contracts, with government funds to cover the expected price difference.

The consultation mentions a 2026-36 timeframe. This could refer to the envisaged 10-year delivery period, although 2026 would be a highly ambitious start date for deliveries given the mechanism is targeting projects that are yet to be developed.

The first round, split into specific lots for ammonia, e-methanol and e-SAF, was concluded in early 2023. Winners have yet to be announced.

Interested participants can submit responses to the consultation until 22 July, after which the design will be finalised.

By Pamela Machado

Proposed lots for H2Global second round
Region	Type of lot	Budget range (in €mn)*
Europe	Vector open	600 - 1100
Global	Vector open	600†
North America	Product open	300 - 600
Asia	Product open	300 - 600
Africa	Product open	300 - 600
South America & Oceania	Product open	300 - 600
*total budget allocated would not exceed €3.531bn; † of which Germany's contribution will be €300mn, with the rest likely to come from the Dutch government
- Germany's economic affairs and climate protection ministry

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15/05/25

UK establishes public energy company

London, 15 May (Argus) — The UK parliament has passed a bill establishing a publicly owned energy company, Great British Energy (GBE), to support the nation's renewable energy ambitions. The company, funded with £8.3bn ($11.02bn) over the current parliamentary term, aims to accelerate renewable energy projects, enhance energy security, and support job creation, the department for energy security and net zero (Desnz) announced on Thursday. GBE will invest in clean energy initiatives, including technologies such as floating offshore wind, and collaborate with private companies to expand renewable energy capacity. The government states the company will help stabilise energy costs by reducing reliance on fossil fuels. The bill includes £200mn for renewable energy projects, such as rooftop solar for schools, hospitals, and communities. It has also committed £300mn to develop the UK's offshore wind supply chain, supporting manufacturing of components such as cables and platforms. The legislation received approval from the devolved governments of Scotland, Wales, and Northern Ireland, enabling GBE to operate across the UK. Desnz secretary of state Ed Miliband is expected to outline GBE's strategic priorities "soon", specifying technology focus areas and investment criteria. The government sees GBE as a key part of its plan to transition to clean energy and stimulate economic growth through a "modern industrial strategy", it said. Industry body Energy UK welcomed the bill's passage. "[GBE] can play a vital role in making the government's clean energy ambitions a reality by attracting extra private sector investment," chief executive Dhara Vyas said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France consults on expanded biofuels mandate

15/05/25

France consults on expanded biofuels mandate

London, 15 May (Argus) — France has opened consultation on the transposition of part of the recast renewable energy directive (RED III) into national law, which would replace the current system with a new one called "incentive for the reduction of the carbon intensity of fuels" (IRICC). The proposal introduces two separate sets of requirements for transport fuels. The first is for greenhouse gas (GHG) emissions reductions, broken down by transport sectors — road, aviation, maritime, LPG and natural gas for vehicles, which could be CNG or LNG (see table). In the current draft, the GHG reduction target for the road sector will start at 5.9pc in 2026, rising to 10.6pc in 2030 and 18.7pc in 2035. For aviation, the target starts at 2.5pc in 2026, rising to 5.8pc in 2030 and 18.8pc in 2035. The GHG mandate levels include a gradual phasing-in of new fuel sectors – river and maritime fuels, fuel gasses, and aviation. To meet the overall RED III target of 14.5pc emissions reduction by 2030, the national French target includes the biofuels mandates, a share for rail transport, and a share or private vehicle charging. The second set of requirements is a renewable fuel requirement by energy content, which is broken down by fuel type — diesel, gasoline, LPG and natural gas fuels and marine fuel (see table). The blending requirements for diesel start at 9pc in 2026, rising to 11.4pc in 2030 and 16pc in 2035. For gasoline, the mandates start at 9.5pc in 2026, rising to 10.5pc in 2030 and 14.5pc in 2035. Finally, the proposal includes a set of sub-mandates for advanced fuels and renewable hydrogen . The advanced biofuels mandate would start at 0.7pc in 2026, rising to 1.95pc in 2030 and 2.6pc in 2035. Users of renewable fuels of non-biological origin (RFNBOs) would not be subject to the advanced sub-mandate. In feedstock restrictions, the crop cap will rise to 7pc from 6.2pc in 2030 and 2035, while the limit for fuels made from feedstocks found in Annex IX-B of RED will be at 0.6pc in 2026, 0.7pc in 2030 and 1pc in 2035 for diesel and petrol. Aviation fuel will not have a IX-B cap until 2030, and from then it will be 6pc. Mandate compliance would be managed by a certificate system through the CarbuRe registry, with a compliance deadline of 1 March the following year. Public electric vehicle charging would also generate tickets, although the amount of tickets generated by charging light passenger vehicles would be reduced from 2031 to reach 50pc in 2035. Renewable hydrogen used in transport would also generate tickets counting towards the hydrogen sub-quota and reduce the overall GHG savings requirement. Public charging stations will start generating fewer tickets for electric passenger vehicles from 2031 to 50pc by 2035. France is also considering steep penalties for non-compliance, at €700/t CO2 not avoided for the GHG reduction requirement and at €40/GJ for the fuel targets. The penalty for not meeting hydrogen and advanced fuel sub-targets would be doubled, at €80/GJ. The consultation is open for comments until 10 June. By Simone Burgin Proposed GHG reduction by transport sector % 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Road and non-road diesel 5.9 7.1 8.3 9.5 10.6 13.2 14.8 16.2 17.5 18.7 Aviation 2.5 3.3 4.1 4.9 5.8 8.4 10.8 13.3 15.9 18.7 RFNBO sub-target (% en.) 0.0 0.0 0.0 0.0 1.2 1.2 2.0 2.0 2.0 5.0 Maritime 2.5 3.25 4.0 5.0 6.0 7.0 8.0 10.0 12.0 14.5 RFNBO sub-target (% en.) 0.0 0.0 0.0 0.0 1.2 1.2 1.2 1.2 2.0 2.0 LPG and natural gas fuels 0.0 0.0 2.7 6.3 10.6 13.2 14.8 16.2 17.5 18.7 DGEC Proposed energy content mandate by fuel type % (en.) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Diesel 9.0 9.5 10.1 10.7 11.4 12.2 13.0 13.8 14.9 16.0 Petrol 9.5 9.7 10.0 10.2 10.5 11.1 11.8 12.6 13.4 14.5 Natural gas fuels 0.0 0.0 3.0 7.0 12.0 15.0 16.0 18.0 19.0 21.0 LPG 0.0 0.0 3.0 7.0 12.0 15.0 16.0 18.0 19.0 21.0 Marine fuel 2.9 3.8 4.7 5.9 7.1 8.2 9.4 11.8 14.1 17.1 DGEC Proposed caps and sub-targets % (en.) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Feedstock caps Crop feedstocks 6.2 6.4 6.6 6.8 7.0 7.0 7.0 7.0 7.0 7.0 Annex IX-B feedstocks* 0.6 0.6 0.65 0.7 0.7 0.75 0.8 0.85 0.9 1.0 Cat. 3 tallow 0.5 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 Tall oil 0.1 0.1 0.1 0.1 0.15 0.15 0.15 0.15 0.15 0.2 Fuel sub-targets Advanced feedstocks 0.7 0.95 1.25 1.6 1.95 2.0 2.1 2.25 2.4 2.6 RFNBOs/Renewable hydrogen 0.05 0.2 0.5 1.0 1.5 1.6 1.7 1.8 1.9 2.0 *For diesel and petrol Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France mulls 1.5pc renewable H2 target for transport

13/05/25

France mulls 1.5pc renewable H2 target for transport

Paris, 13 May (Argus) — France has opened a consultation on a proposed 1.5pc renewable hydrogen quota for the transport sector by 2030, and hefty penalties to back this up. The country's ecological transition ministry has proposed a mechanism for reducing emissions in the transport sector called IRICC. This would replace the existing Tiruert system and would, among other measures, introduce specific quotas for use of renewable and low-carbon hydrogen. The proposed regulations set specific quotas for greenhouse gas (GHG) emissions reductions that fuel suppliers would have to meet across different transport sectors in 2026-35. In line with requirements of the EU's renewable energy directive (REDIII), it also sets specific sub-quotas for renewable fuels of non-biological origin (RFNBOs), which are effectively renewable hydrogen or derivatives. These would start at 0.1pc in 2026 and rise steadily to 1.5pc by 2030 and to 2pc by 2035. This does not factor in double-counting, which the EU rules allow, meaning the quotas should reflect the actual share of RFNBO supply delivered to the transport sector. France's target exceeds the minimum 1pc requirement under EU rules, which effectively constitute a minimum share of only 0.5pc when factoring in the possibility for double-counting. Some EU members have set more ambitious targets. Finland is aiming for a 4pc quota by 2030 . But others, like Denmark, are planning a less ambitious implementation of EU rules, which has drawn the ire of domestic hydrogen industry participants . France's proposed quota is not set in stone as it is seeking feedback on whether a 0.8pc quota would be preferable. The consultation text does not specify if Paris would allow renewable hydrogen used to make transport fuels in refineries to be counted towards the targets with or without a so-called correction factor. The document foresees specific targets for use of synthetic fuels "produced with low-carbon electricity" in the aviation and maritime sectors. For aviation these would be 1.2pc for 2030, 2pc for 2032 and 5pc for 2035 — broadly in line with mandates from the EU's ReFuelEU Aviation legislation. Crucially, these mandates can be fulfilled with renewable supply and with aviation fuels made with nuclear power. Unlike for other EU targets, the ReFuelEU Aviation rules provide this option, leaving France in a promising position to become a major producer of synthetic aviation fuels thanks to its large nuclear fleet. The EU has not yet set binding targets for synthetic fuels in the maritime sector, but the French proposal foresees quotas of 1.2pc for 2030 and 2pc for 2034. The new mechanism will arguably allow for trading of GHG emissions reduction and fuel supply credits, similar to Tiruert, although the consultation document does not detail this specifically. Hefty penalties Hefty penalties for non-compliance could ensure that obliged parties meet their quotas. The ministry is proposing a penalty of €80 ($89) for each GJ that fuel suppliers fall short of their RFNBO quotas. This would equate to around €9.60/kg, based on hydrogen's lower heating value of 120 MJ/kg. It is broadly in line with penalties set by the Czech Republic , but considerably higher than those in Finland. Crucially, the penalties would be in addition to potential fines for falling short of the larger GHG emissions reduction targets. Companies could additionally incur penalties of €700/tonne of CO2 they fail to avoid short of their requirements. Stakeholders can respond to the consultation until 10 June. By Stefan Krumpelmann and Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Minister eyes German energy transition 'reality check'

09/05/25

Minister eyes German energy transition 'reality check'

London, 9 May (Argus) — Germany's energy transition needs a "reality check", the country's new energy minister Katherina Reiche has said, stating that the government will prioritise security of power supply over climate protection. The government must strike the right balance between climate protection, security of supply and costs, Reiche said at the Ludwig Erhard Summit earlier today, arguing that the focus in recent years has been disproportionately on the former. The new government will put security of supply "first", while also focusing on keeping system costs — such as redispatch and grid expansion costs, which previous governments "underestimated" — as low as possible. The government is aiming to "quickly" hold tenders for the construction of "at least" 20GW of new gas-fired capacity, Reiche said, citing the recent blackout in the Iberian peninsula as evidence that Germany cannot become complacent over its power supply. While she acknowledged that the reasons for the blackout are not yet fully determined, she said that a lack of inertia in the power system is likely to have contributed to it, and that more flexible gas-fired plants "could have helped" Spain avoid the blackout. She called for Germany to agree "long-term delivery contracts" for natural gas, to ensure security of supply in the coming years. And Reiche emphasised the importance of "technology openness", particularly when it comes to Germany reaching its goal of becoming climate-neutral by 2045. There may be new technologies that are yet to be invented or fully harnessed that could aid the country in fulfilling its goal, she noted. Hydrogen has the potential to play a role in a "mix" of other technologies in the energy transition, she said, but the expectations for it have become too high for a product that is "not even on the market". Reiche also called for more patience with regard to electrification in Germany, stating that "the transformation of an entire economy [to become climate friendly] in a linear, year-on-year path is not feasible". And the minister reiterated previous CDU/CSU-SPD coalition pledges to reduce the electricity tax and to introduce an industry power price. CDU party member Reiche became the new energy minister on Tuesday, when CDU leader Friedrich Merz was voted in as chancellor, replacing the SPD's Olaf Scholz. By John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK, Norway pursue further ‘green industry’ co-operation

07/05/25

UK, Norway pursue further ‘green industry’ co-operation

London, 7 May (Argus) — The UK and Norway have signed an early-stage agreement for a "green industrial partnership", planning to work together on low-emissions technology such as offshore wind, carbon capture and storage (CCS) and hydrogen. The partnership will "strengthen energy security" and "support robust value chains for raw materials", the Norwegian government said. The collaboration also aims to "support the development of renewable energy sources, and further develop existing cooperation on the protection of subsea infrastructure in the North Sea", Norway's government added. Both Norwegian and UK representatives are in attendance at the Copenhagen climate ministerial this week — an event which often sets the direction for climate negotiations this year. The countries in December flagged their intent to partner on the energy transition, including developing an agreement on cross-border CO2 transport. Norway is a leader in Europe's developing CCS sector. The country's flagship Northern Lights CCS project is due to begin operating this summer. The project's partnership this week confirmed that all required permits are in place for the injection and storage of CO2. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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