German state-owned investment and development bank KfW has launched the world’s first financing platform for tailored financing of infrastructure for green hydrogen and its derivatives.
Together with the Federal Ministry for Economic Cooperation and Development (BMZ) and the Federal Ministry for Economic Affairs and Climate Action (BMWK), KfW will establish two new hydrogen funds with €550 million.
The announcement of the establishment of the PtX Platform was made at the UN Climate Change Conference COP27 in Sharm el-Sheikh.
As explained, the PtX Platform will house the PtX Development Fund and the PtX Growth Fund .
The PtX Development Fund will foster hydrogen investment in developing and emerging economies . At the same time, the PtX Growth Fund will contribute to accelerating the global market and infrastructure development for green hydrogen across all countries .
BWK said that the new support programme, which will be administered by KfW, will close a significant support gap.
“While ‘H2 Global’ is a double auction mechanism to support the import of hydrogen to Germany, the new funds are intended to significantly accelerate the development of the global hydrogen value chain. To that end, they will put focus on financing projects in developing and emerging economies.”
The Development Fund, under the responsibility of the Federal Ministry for Economic Cooperation and Development (BMZ), will be provided with €250 million .
The Growth Fund, under the responsibility of the Federal Ministry for Economic Affairs and Climate Action (BMWK), is to be provided with €300 million .
The funds are to be set up before the end of this year in order to facilitate investment in the near future and significantly accelerate the development of the global hydrogen value chain.
They are intended to help reduce the funding gap for large-scale green hydrogen projects by providing grants for investments along the entire value chain – from green hydrogen production to processing all the way to storage and hydrogen and PtX product transport infrastructure.
The PtX products can be used locally in the partner countries or be exported for purposes such as fertiliser production from green ammonia, replacement of natural gas for carbon-free steel and metal production, and e-kerosene for aviation, shipping and heavy goods vehicles.