Germany has joined an initiative between the Netherlands and Australia to study potential imports of hydrogen and its derivatives via the port of Rotterdam.

From the three nations, 20 companies—including the Port of Rotterdam Authority and Germany’s Fraunhofer Institute for Solar Energy Systems—are expected to take part in exploring the joint development of a hydrogen hub at the Oakajee Strategic Industrial Area (OSIA) in the state of Western Australia (WA).

The initiative will study the potential construction of an offshore export terminal to enable faster transportation of hydrogen to northwest Europe, as well as site-specific estimation of hydrogen generation in the OSIA, supply costs to Rotterdam, and possible port-to-customer transports to Germany.

The WA government plans to invest A$500,000 ($343,950) in the study, with the Port of Rotterdam and Germany’s Federal Ministry for Education and Research set to contribute €250,000 ($267,075) and €500,000 respectively.

A$2/kg – Targeted Australian hydrogen production cost

The partnership builds on the Hysupply feasibility study, launched in late 2020, which explores hydrogen imports to Germany from Australia via Rotterdam, as well as diplomatic links such as the Australia-Germany Hydrogen Accord, signed in 2021.

Australia targets hydrogen production costs below A$2/kg and anticipates that fixed and variable shipping will add a fraction of a dollar to the total cost of Australian hydrogen. However, hydrogen conversion to ammonia and reconversion at end-use are expected to add around $1.16/kg and $1.09/kg to overall cost.

Germany opened its first tender for ammonia, methanol and sustainable aviation fuel imports via the H2Global scheme in late 2022. Under the scheme, these hydrogen derivatives will be purchased by government-affiliated intermediary Hintco under a ten-year contract at the lowest possible price, before being auctioned to offtakers.

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Author: Polly Martin