(Berlin) - Germany wants to provide another 550 million euros for hydrogen projects. The funds will be used to set up two funds for developers and investors, announced Federal Development Minister Svenja Schulze and the Parliamentary State Secretary in the Federal Ministry of Economics, Stefan Wenzel.
Electrolyser Development Fund
According to the information, a “Ptx development fund” is planned to specifically promote investments in developing and emerging countries. This will be endowed with 250 million euros and will enable state and private applicants to obtain “structured project financing for the financing of plants for the production of green hydrogen”. Grants and conventional promotional loans can be combined.
Infrastructure growth fund
In contrast, a “Ptx growth fund” with a volume of 300 million euros is intended to accelerate the global market ramp-up and the infrastructure for green hydrogen as a whole. It is aimed at European companies and consortia with headquarters or permanent establishments in Germany to finance “large-volume systems for the production, transport, storage and use of hydrogen and the necessary renewable energies”.
The financing platforms are located at and managed by the Kreditanstalt für Wiederaufbau (KfW). They offer investors interconnected financing products such as equity investments, loans and grants from KfW Development Bank and the KfW subsidiary DEG (Deutsche Investitions- und Entwicklunggesellschaft mbH).
Global South with great potential
The potential for producing green hydrogen is greatest in the countries of the global south. According to the fund announcement, there are particularly good starting conditions for systems for the production of green hydrogen in the regions of the Middle East, North Africa, southern Africa, Latin America and the countries of Eastern and Southeastern Europe.
However, there is a risk that “a strategic gap for developing countries will arise at an early stage of market development” that can no longer be made up. “It is therefore a development policy task to support these countries,” it says. In addition, the development of a hydrogen market in the respective countries offers “opportunities for local value creation, training and qualified jobs for the local population”. German companies would also have the opportunity to position themselves in the “future market of green hydrogen”.
Photos
The global south has great potential for renewable energies such as wind and sun, and thus for the development of green hydrogen projects. © International Energy Agency IEA
