The European Investment Bank (EIB) has confirmed an additional German contribution to the Green Hydrogen Fund, enabling the fund to broaden its scope and supporting the international ramp-up of the hydrogen economy.
The Green Hydrogen Fund, established in 2021 and implemented by EIB, will now provide investment grants in addition to strategic advice and technical assistance to developing countries for initiatives or projects using green hydrogen.
The possibility to offer investment grants will make the fund even more impactful as these types of grants are crucial in advancing projects often perceived as too risky by traditional investors, EIB claimed, adding that the additional funding will help reduce the financing gap for large-scale green hydrogen projects.
To note, the fund subsidises investments and advisory services along the entire value chain: from the production of green hydrogen, through processing, to storage and the transport infrastructure for hydrogen and hydrogen downstream products.
Overall, it is said to contribute to the global energy transition, sustainable and emission-free economic development and the achievement of climate goals. Moreover, according to the EIB, it has the potential to enhance EU energy security.
EIB also pointed out that with this replenishment, its development arm, EIB Global, and the German Ministry for Economic Affairs strengthened their long-standing collaboration in the green hydrogen sector.
EIB President Werner Hoyer said: “Green hydrogen can help industries reduce their carbon footprint. The countries of the Global South have enormous potential to produce the renewable energy needed for green hydrogen. With the Green Hydrogen Fund, we are building a bridge between the innovative projects required to limit global warming to an acceptable level and the economic development of countries and regions most affected by the consequences of climate change.”
“Together with the German Ministry for Economic Affairs and Climate Protection, we will offer technical assistance and investment grants through the fund. This will enable our partners to integrate green hydrogen into their climate action plans and develop infrastructure projects that can make green hydrogen a reality on a large scale.”