Germany - Methanol - Auction Procedure for the Purchase of Methanol - Global Methanol Lot (GML)

This auction procedure is part of the H2Global mechanism, an instrument for competition-based support of the market ramp-up of renewable methanol Hintco strictly adheres to the principles of non-discrimination and transparency in order to ensure a high level of competition during the auction. Producers can supply renewable (RFNBO) methanol to Hintco. Hintco requires that the product is produced using renewable energy and in compliance with sustainability requirements as specified in the Performance Specifications and the Hydrogen Purchase Agreement, incl. its Annexes. The auction process will be carried out as follows: === First of all, Hintco will assess the eligibility of the candidates with regard to the subject of the auction. Interested companies must therefore submit a request to participate. === This request to participate is assessed by Hintco in two stages: first for a complete submission on time and in the correct form, then for eligibility based on defined criteria. Candidates meeting all minimum requirements will be invited to a submit an initial bid (see Section 4 Conditions of Participation). === The candidates who were selected in the call for competition will be invited to submit an initial (non-binding) bid via the tender platform. All bidders who have submitted an initial bid in due form and time will then be invited to negotiations (see Section 3 'Conditions of the Bidding Phase'). After one round of negotiations, Hintco intends to invite the bidders to submit a final (binding) bid. Nevertheless, Hintco reserves the right to hold additional rounds of revised (non-binding) bids and negotiations before inviting to the final bid. Hintco may revise the auction documents based on insight gained in the negotiations. === All bidders receive the same draft HPA as the basis for negotiation proposals. Negotiations aim to create a single set of HPA contract terms for the global methanol lot, allowing for competitive bids. All bidders receive the same draft HPA, but the grey-highlighted contract sections are generally excluded from negotiations (deemed non-negotiable). This limit is mainly due to regulation, state aid rules, and Hintco’s operational setup. Exceptions may be considered in justified cases. After negotiations end, bidders have at least 8 weeks to prepare and submit their final bids. === Only final bids meeting all formal and substantive requirements will be admitted. This requires a final and binding bid in due form and time, a completed Price and Quantity Sheet, an updated project description, a self-assessment of RFNBO certification-readiness, a calculation of the greenhouse gas emissions and a sufficient probability that the bidder will fulfil the contractual obligations (see Section 5 lit. a Conditions of the Bidding Phase). === A price cap of 1951 EUR per metric ton applies. Final Bids that exceed this price cap for even one contract year will not qualify for an award and will be excluded from the auction procedure. Furthermore, the offered quantities must reach the minimum bid value of 180000000 EUR accumulated over the entire contract term. Bids that fall below the minimum bid value will be excluded from the auction procedure (see Section 5 lit. b Conditions of the Bidding Phase). === The award criteria for the bids will consist of 90 % volume weighted average price and 10 % maximum optional delivery quantity (see Section 5 lit. c Conditions of the Bidding Phase). === The best bidder will be subject to an extended validation. As part of the extended validation, the best bidder of each lot according to the award criteria will be requested to provide a proof of a market-conform return on equity of the project, a proof of a successful RFNBO pre-certification through one of the recognised Voluntary Schemes and, if applicable, a bid bond (see Section 6 Conditions for the Bidding Phase). === This lot only includes production in the following countries or territories: The location of the Value Chain Installations for Methanol must be outside the EU and EFTA states (Iceland, Liechtenstein, Norway and Switzerland).