New Stimulus for the German-Australian Energy Partnership

Stefan Rouenhoff, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Energy (BMWE), is in Australia this week for political talks. He will meet with representatives of the Australian government, visit various industrial projects, and participate in the Australia-EU Hydrogen Supply Chain Forum, which both countries are holding as part of their energy partnership. In talks with high-ranking representatives of the ministries for raw materials, climate and energy, foreign affairs and trade, and the defense industry, State Secretary Rouenhoff will promote concrete measures for deeper cooperation. At the forum, Rouenhoff will continue to promote the joint hydrogen tender agreed last year as part of H2 Global and discuss key supply and sales issues with major industrial companies.

"Germany and Australia share a long-standing partnership and friendship. The geopolitical and economic developments of recent years present our two countries with new challenges. We should find joint responses to these challenges. That is why it is the declared goal of the German government to further expand political and economic relations with Australia, for example in the raw materials sector and in the field of energy policy. Australia has extensive raw material reserves, a strong mining sector, and optimal conditions for large-scale hydrogen production. Both sides can benefit from deepening our partnership in these and other areas. In addition, I am advocating in Canberra for the swift resumption of free trade negotiations with the European Union. It is in the mutual interest of both sides to put our foreign trade relations on a broader footing and to agree on a comprehensive trade agreement soon," says State Secretary Rouenhoff.

Back in September 2024, Germany and Australia agreed on joint auction-based tenders, known as joint tenders, to expand the German-Australian hydrogen market. These tenders aim to promote the development of renewable hydrogen projects, establish renewable hydrogen supply chains between Australia and Europe, and enable Australian hydrogen producers to export to one of the world's largest markets for renewable hydrogen. Both countries are providing €400 million each for this purpose. The tenders will be processed via H2Global, the world's largest tendering process for the procurement of green hydrogen. At the core are auctions in which hydrogen products are purchased at the lowest bid price and then resold to the highest bidder in Germany or the EU. As long as end customers' willingness to pay is lower than the bid price, the difference in costs will be offset by government subsidies.