Germany issues ordinance to enable offshore wind-to-green hydrogen auctions

The Ordinance on Auctioning Sites for Alternative Energy Generation in the Exclusive Economic Zone was published in the Federal Gazette and entered into force on 1 October 2021.

The ordinance creates the basis to test the production of green hydrogen offshore. “Until now, electrolysis-based hydrogen production has only taken place onshore,” said the Ministry. “From now, business and industry have the possibility to use and test offshore electrolysis.”

Federal Minister Peter Altmaier said, “Offshore production of green hydrogen is a forward-looking issue with great potential for innovation. Offshore hydrogen production can make a considerable contribution to the decarbonisation of industry in Germany.”

Under the ordinance, sites in the North Sea will be used for offshore hydrogen production. The Federal Maritime and Hydrographic Agency will be in charge of the auctions. The ordinance also stipulates the criteria for the auctions.

Sites in the Exclusive Economic Zone will be awarded on the basis of qualitative criteria. The first round of auctions is to take place in 2022.

As a first step, successful bidders will be entitled to apply for planning approval for their respective sites. As a second step, they can apply for funding. For this purpose, the German Federal Government has earmarked €50M (US$54M) in the 2022 from its energy and climate package.