Australian-German business coalition releases roadmap for large-scale green hydrogen import to Germany
A group of leading German companies along with Australia’s Fortescue Future Industries (FFI) has released a green hydrogen roadmap, outlining a set of recommendations for government and industry, to meet the ambitious target of importing large amounts of green hydrogen from Australia to Germany.
The Green Hydrogen Taskforce, created earlier this year, is a collaborative effort between FFI, and companies in Germany including Covestro, E.ON, Linde, Luthardt, SAP, Schaeffler, thyssenkrupp Nucera and thyssenkrupp Uhde.
The green hydrogen roadmap developed by the Taskforce consists of a 10-point plan and a White Paper and is intended to outline a constructive pathway forward in Germany for business and government. The roadmap could potentially serve as an example for other nations looking for solutions.
The companies in the taskforce are ready to move on green energy through serious investment and will work with Government to achieve these goals together. The recommendations to the German government include: developing subsidies and incentives to remove the “First Mover Disadvantage”; encouraging sources of low-cost capital to scale the industry, and underwriting equipment manufacturers expansion plans to meet developer’s needs.
FFI and E.ON recently announced a partnership with the goal to supply 5 million tonnes of green hydrogen a year by 2030—the equivalent of one third of the calorific energy of natural gas Germany imports from Russia.
Industrial demand centers in Germany and the EU are ready to offtake up to 5 Mtpa of green hydrogen in the short-term, with a total addressable market of up to 27 Mtpa in the long-term.
By 2030, carbon price will likely reach a sufficient threshold for imported green hydrogen to be competitive with fossil fuels, negating the need for any further subsidies. (Source: RMI analysis)
The required near-term market- and first-mover support of €20-30 billion will achieve more than 10x leverage on capital deployed into industrial assets. (Source: RMI analysis)
Clear and timely government support is needed to signal confidence in a burgeoning green hydrogen market and remove barriers to investment.
Once common standards and robust financial mechanisms are in place, stakeholders across the green hydrogen value chain are ready to agree on contracts and ensure production, transport, storage, and conversion facilities are ramped up at the scale required to meet deployment targets.
Green ammonia is a key route for green hydrogen to be supplied to EU markets as existing infrastructure can be leveraged and expanded, and safe handling of ammonia is well established.
Moving quickly and strategically to build up a green hydrogen trade will enable Germany and the EU to capitalize on short-term opportunities across volatile global energy markets, and to safeguard energy security while achieving critical decarbonization objectives.