The European Energy Exchange (EEX) is participating in the H2Global foundation funded by the Federal Ministry for Economic Affairs and Climate Protection (BMWK). As more and more well-known companies are positioning themselves behind the plans of the new federal government for a comprehensive green energy turnaround, the global commodities exchange will contribute its expertise to the development of more sustainable markets, by developing a trading market particularly for hydrogen.
The H2Global Foundation, which was established to promote the market ramp-up of green hydrogen in Germany and Europe, is getting a prominent addition with the European Energy Exchange (EEX). By joining, EEX is demonstrating its commitment to establishing reliable marketplaces for hydrogen.
"The trading of green hydrogen and its downstream products such as ammonia on the exchange ensures transparency in prices and trading volumes," explains Dr. Tobias Paulun, Chief Strategy Officer of EEX. "The development of liquid exchange markets for hydrogen and its downstream products is important so that producers and consumers can meet under reliable conditions. The work of H2Global lays the foundation for this."
EEX has been operating transparent marketplaces for energy products such as power and natural gas, Guarantees of Origin, CO2 emission allowances within the framework of the European Emissions Trading Scheme (EU ETS) and other commodities for more than 20 years. Building on its experience, EEX is committed to the ramp-up of a European hydrogen economy and established a working group dedicated to hydrogen at the end of 2020. Together with the participants from various sectors of the economy, the exchange is working on a hydrogen index which is based on price assessments by market participants.
With its commitment to H2Global, EEX joins a series of important industrial companies such as Siemens Energy Global GmbH, Thyssenkrupp AG, Deutsche Bank AG, Salzgitter AG or Uniper SE. They all support the approach, which was developed with an interdisciplinary team of experts with significant participation of the BMWK, to ensure a rapid market ramp-up in green hydrogen through a foundation. The Federal Ministry for Economic Affairs and Climate Protection (BMWK) is funding its provision through the H2Global Foundation with almost one billion euros.
"In the interest of the Federal Government, the German economy and, last but not least, society, we see it as our urgent task to establish a strong and internationally diversified supply chain for green hydrogen - trading on an exchange is absolutely a part of this as an allocation and coordination mechanism", H2Global CEO Exenberger summarises the mission of H2Global. "The expertise of EEX in the establishment and operation of energy trading markets is welcomed.”
About EEX
The European Energy Exchange (EEX) is the leading energy exchange which develops, operates and connects secure, liquid and transparent markets for energy and commodity products around the globe. As part of EEX Group, a group of companies serving international commodity markets, it offers contracts on Power, Natural Gas and Emission Allowances as well as Freight and Agricultural Products. EEX also provides registry services as well as auctions for Guarantees of Origin, on behalf of the French State. More information: www.eex.com
About H2Global-Stiftung
The aim of the H2Global Foundation is to promote climate and environmental protection. One element in achieving the foundation's purpose is the testing of an efficient funding programme for a timely market ramp-up and import of green hydrogen and power-to-x products (PtX). For the first time, the funding mechanism enables the economic, sustainable operation of PtX plants and thus allows the industrial market ramp-up that is now required. H2Global thus differs from previous investment support programmes, which primarily provide investment subsidies to develop and test PtX technologies. In order to promote the ramp-up of a green hydrogen economy efficiently and in a market economy, H2Global uses a double auction model to determine the price. The lowest bid price and the highest selling price are each awarded the contract. In this way, the price difference to be compensated is as small as possible. Through a divergence of terms in the purchase and sales contracts, the intermediary can also profit from possible price increases in the products sold - this reduces the need for state subsidies and is thus potentially much more efficient than previous subsidy instruments. The purchase of green hydrogen and hydrogen-based PtX products includes delivery to Germany. Further criteria in the award for the purchase of green hydrogen and its derivatives include sustainability requirements defined by the federal government and the maturity of the projects.
Contact:
EEX Public Relations
T +49 341 2156-216 | T + 33 1 73 03 76 52
presse@eex.com | www.eex.com
SCRIVO Public Relations
Contact person: Franziska Kegel / Tristan Thaller
E-Mail: franziska.kegel@scrivo-pr.de / tristan.thaller@scrivo-pr.de
Tel: +49 89 4523508-19