To ensure more climate-friendly hydrogen, Germany will import more than 250,000 tons of “green” ammonia in the coming years. According to the Federal Ministry of Economics, a corresponding supply agreement for the years 2027 to 2033 was concluded with the company Fertiglobe from the United Arab Emirates. Accordingly, Fertiglobe will produce ammonia in Egypt using wind and solar energy. Adnoc from Abu Dhabi is said to be behind the company. Ammonia is easier to transport than hydrogen, but has to be converted back into green hydrogen in Germany. “Green” means that production takes place using renewable energy. The price for this should be just under 4.50 euros per kilo. State funding program for green hydrogenThe agreement is the result of an initial call for tenders as part of the “H2Global” funding program, which aims to create a functioning international market for green hydrogen. For this purpose, green hydrogen products are purchased on the global market and sold to the highest bidder in Germany or the EU. The trading platform therefore assumes a hinge function between producing countries, especially in the southern hemisphere, and the industrialized countries as buyers. Possible losses during resale are offset by government funding. The foundation is endowed with a total of 4.4 billion euros. A price of 4.40 euros per kilo is currently considered competitive. The delivery contract that has now been agreed is an important step for the transformation of Germany as an industrial location, said Economics Minister Robert Habeck (Greens). “The availability of inexpensive green energy – now also in the form of hydrogen – will continue to be an important location factor for industry in the future.”Two thirds of hydrogen must be importedWith the pilot tender, the government has for the first time given concrete information on the costs of green hydrogen. Production. Based on the ammonia price, the production costs are around 4.50 euros per kilo of hydrogen, the ministry said. When using natural gas, so-called gray hydrogen, it costs around three to four euros.More on the topicThe project is part of the government’s hydrogen strategy, which is supplemented by an import strategy. Germany wants to become the lead market for the hydrogen economy. Around the world, the government is initiating projects with various countries to create green hydrogen. It is seen as the key to making the basic materials industry in Germany, in particular, climate-neutral. It will also be used in gas power plants to compensate for the growing but highly fluctuating production of wind or solar power. Hydrogen is also needed in air and shipping transport. It is assumed that Germany will be able to produce around a third of what it needs in the long term; the rest will have to be imported.
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