The creation of a regional lot for South America and Australia within the second global green hydrogen auction, H2Global, presents a significant opportunity for a Brazilian project to emerge victorious.
“Brazil has a strong chance of winning the South America lot,” stated Bruno Galvão, a specialist in regulatory law and ESG at the German firm Blomstein, in an interview with eixos. Blomstein assists Brazilian and international companies in participating in this process.
Last week, Hintco—the company responsible for operationalizing the H2Global initiative—released initial information about the auction, which is still open for public consultation to finalize the bidding process.
With funds from Germany and the Netherlands totaling €2.5 billion, potentially reaching €3 billion, the auction aims to promote the production and international trade of renewable hydrogen under European Union criteria.
This edition of the auction will be divided into five lots: four regional and one global.
The regional lots cover North America; South America and Australia; Asia; and Africa, with a minimum of €484 million allocated to each from German funds for the purchase of green hydrogen derivatives, such as ammonia and methanol, with deliveries expected from 2031.
Competitive Advantages
According to Galvão, the establishment of these lots levels the playing field for projects from regions with similar challenges and characteristics, such as South America and Australia.
“It’s a way to equalize variables. You have a context that’s more or less similar between South America and Australia, like renewable energy production capacity and transportation costs, which is an important component,” the lawyer noted.
“This possibility of competing with similar realities is a facilitator,” Galvão added.
This is because, in addition to producing the hydrogen derivative, one of the auction’s rules requires the final product to be delivered to a German port, with transportation also factored into the equation.
Source: https://eixos.com.br/hidrogenio/brasil-tem-grandes-chances-no-leilao-global-de-hidrogenio-verde-avalia-especialista
