German orgs push for competitive market design for offshore hydrogen

The planned offshore hydrogen tender in Germany should enable the rapid realisation of projects to produce large quantities of green hydrogen and this will require a number of adjustments to the scheme, according to several industry organisations.

A plan published by the Federal Maritime and Hydrographic Agency (BSH) in January, outlines an area, dubbed SEN-1, of about 101.6 sq km in the North Sea for the offshore production of green hydrogen. The area is four times bigger than originally envisaged.

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"We welcome an early start to the award of the SEN-1 site for the production of green hydrogen at sea for a specific offshore hydrogen expansion target in the German EEZ as well as for the rapid market ramp-up of the green hydrogen economy in Germany," said Heike Winkler, Managing Director of the industry association WAB e.V.

In a letter published last week, a group of industry organisations, among them WAB, are calling for a revision of the auction that envisages tendering 500 MW of offshore electrolysis capacity annually from 2023 on.

According to the associations, the SEN-1 site should be divided and offered in smaller parts in order to ensure the required technological development. The separate parts should be offered with a time interval of about two years between the tenders so that the insight gained from the initial phase can be applied in further development.

This will also help reduce the risks for the emerging technology for offshore electrolysis and ensure its successful launch.

In addition, the bids competing in the tender should be evaluated in terms of the likelihood of realisation of the projects, the compatibility with essential nature conservation aspects, and the performance of the bidder.

Along with WAB, the signatories of the letter include the Aqua Ventus Foerderverein (AQV), the German hydrogen and fuel cell association DWV, the Federal Association of Offshore Wind Operators and the Erneuerbare Energien Hamburg Clusteragentur GmbH.