Public procurement notice: Contract Award Notice
Published: 2022-09-05
Buyer: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Country: DE
Contract type: Services
Procedure: Competitive procedure with negotiation
CPV classification: 66171000 | 79411000
Award criteria: The most economic tender

Technical requirements: 81285390-Concept development for a financing mechanism for market ramp-up of green Hydrogen in Brazil
The Governments of Germany and Brazil agreed to cooperate on a renewable hydrogen project with the objective to contribute to the establishment of a green hydrogen economy for Brazil. The present line of action 2 "Green Hydrogen" of the Technical Cooperation module "DKTI-Brazilian-German Technology Partnership" is part of the development cooperation (DC) program "Renewable energies and energy efficiency in Brazil", which aims to ensure that Brazilian households, public institutions and companies are supplied with energy safely and in a climate-friendly manner. The main aim of the program is to promote renewable energies and increase the efficiency of energy use.
1. Framework conditions: supports the Brazilian National Hydrogen Program, developing energy planning scenarios, pointing out needs in the current regulatory framework and analysing the implementation of a green H2 certification system in the country.
2. Dissemination: will conduct studies, actions and campaigns on the importance of green H2 production in Brazil, in addition to promoting the exchange of knowledge and experiences with influencers through international missions and press conferences with media professionals. Studies shall also be produced and disseminated on the Brazilian potential for a green H2 economy.
3. Vocational Training and Higher Education:  encourages the development of educational content, the implementation of laboratories with infrastructure for learning and professional training actions in green H2 technologies through multiplier training - with the provision that at least 20% of the participants are women.
4. Innovation: fosters innovation in the development of green H2 technologies through competitions involving technology and research centers, start-ups and enthusiasts. The establishment of international networks of researchers from universities and companies, the creation of a digital innovation hub and the construction of laboratories are contemplated in the scope of the component.
5. Market Ramp-Up: focuses on improving the economic feasibility of green H2/PtX industrial applications. It shall implement a cluster of applications for pilot projects along the H2/PtX value chain, which shall be equipped with an electrolysis plant with a capacity of up to 5MW, thus allowing companies to improve their economic feasibility.
The line of action of the TC module interacts with other TC and Financial Cooperation (FC) modules of the Brazilian-German development cooperation programme. The project can build on the extensive experience of TC in the areas of RE and climate protection and reinforces the effects of the TC modules "Energyystems of the future"  I, II and III, which have been running since 2016. The TC module ESZ advises the National Electricity Regulatory Authority (Agência Nacional de Energia Elétrica, ANEEL) and the Brazilian Energy Planning Authority (Empresa de Pesquisa Energética, EPE) to an economically and technically optimized integration of variable RE shares in national power grids and promotes the stability and flexibility of grid operation.
The ultimate goal of this assignment is a concept for an effective, comprehensive, feasible and ready to implement government financing/support instrument, to support, invigorate and scale up the market of green hydrogen and derivatives (Power-to-X/PtX) in Brazil. This concept shall include three to five instruments, packaged into ready to implement set of documents.
This suitable financial instruments can include, but not limited to: (partial) grants, fund structures, guarantees, revolving concessional loans, compensation and insurance schemes, risk mitigation instruments, structured debt/equity, subsidies, insurance, tax incentives, contracts for differences or auction mechanisms that help de-risk or lower capital costs, specifically investment cost (CAPEX)- and operating cost (OPEX), such as the German funding concept H2Global. The concept shall have the H2 market view and to be geared to the various involved target groups along the H2 value chain.
The concept shall be developed and coordinated with relevant national and international stakeholders. In particular, it must be adapted to the Brazilian institutional, economic, financial system, as well as to the policy and regulatory framework. Close assessment of and cooperation with the key public players in the financial sector, including development banks such as the largest state development bank BNDES, is an essential prerequisite for the development of a successful concept. The project team can facilitate the contact with relevant national (and international) partners, where appropriate.
The work package comprises the concept development for target focused financing mechanisms for market ramp-up of green H2/ PtX products for Brazil, and in specific, the following tasks:
1 Stock-taking of available green hydrogen financing mechanisms in the domestic and international market through an economic market environment study, comprising in-depth analysis of the H2 value chain and H2 environment, i.e. regulators, producers, electrolyzer construction companies/investors and off takers
2 Derive a matrix of suitable financing mechanisms for different cases/ scenarios along the H2 value chain
5 Final comprehensive report on the set of financial instruments along the H2/PTX value chain and workshop presentation