Germany intends to auction areas in the North Sea Exclusive Economic Zone (EEZ) with the goal of offshore green hydrogen production. The auctions are scheduled to begin as early as 2022.
The government released a key ordinance on 1 October 2021 that takes effect immediately and covers the exclusive economic zone and auction conditions.
The Ordinance establishes the framework for assessing the feasibility of using offshore electricity for hydrogen generation. Electrolysis-based hydrogen generation has only been conducted on land till now. The German Federal Ministry of Economic Affairs and Energy has said that companies and industries would be able to utilize and test offshore electrolysis soon.
“Offshore production of green hydrogen is a forward-thinking endeavor with tremendous innovation potential. Offshore hydrogen generation has the potential to significantly contribute to Germany's industrial decarbonization,” Federal Minister Peter Altmaier stated.
Upcoming auctions will be conducted by the Federal Maritime and Hydrographic Agency (BSH). The Ordinance establishes the auction criteria. The Ordinance is technologically impartial for the auction. For the first time, the Ministry stated, sites in the Exclusive Economic Zone would be granted based on quality criteria.
Given the advancement of offshore wind technology and the effective use of maritime space, the Ministry stated that it works better to utilize wind energy for offshore electrolysis-based hydrogen production.
