Germany and Australia have defined the design of a planned EUR-400-million (USD 458.2m) green hydrogen auction to be conducted under the H2Global mechanism.

The parties signed on June 19 a new letter of intent aimed at further strengthening and defining German-Australian co-operation on hydrogen, the German energy ministry said.

Under the H2Global double-sided auction model, both countries will provide up to EUR 200 million each, totalling up to EUR 400 million. These funds will be used to procure hydrogen products in Australia through a tendering process. Subsequently, the products will be resold in Germany via a separate auction. The joint public funding will compensate for the price difference between the higher procurement costs and the lower resale prices.