Germany – European Investment Bank (EIB) and Germany are expanding the Green Hydrogen Fund. Established in 2021, this fund is positioned as a catalyst for sustainable and emission-free economic development worldwide.
The recent confirmation of an additional German contribution signifies a strategic push towards advancing the use of green hydrogen in projects across the globe. The primary goal of the Green Hydrogen Fund expansion is to create a bridge between innovative green hydrogen projects and the economic development of countries, particularly those in the Global South. By providing investment grants, strategic advice, and technical assistance, the fund aims to empower developing nations to integrate green hydrogen into their climate action plans and develop the necessary infrastructure for large-scale adoption.
Hydrogen economy ramp-up
The Green Hydrogen Fund addresses the financing gap that often hinders large-scale green hydrogen projects. By subsidizing investments and offering advisory services along the entire value chain, from production to storage and transportation infrastructure, the fund supports the international ramp-up of the hydrogen economy. This comprehensive approach ensures that emerging hydrogen technologies and unestablished markets receive the necessary financial backing.
The expansion of the Green Hydrogen Fund holds the potential to significantly impact the global energy transition. As green hydrogen becomes a focal point for reducing carbon footprints in various industries, the fund’s support will play a crucial role in overcoming challenges such as market conditions, regulatory risks, societal acceptance, and lengthy approval processes. Public support, in the form of investment grants, becomes a market signal that attracts further investments and mitigates risks associated with hydrogen projects.
Collaboration
With the replenishment of the Green Hydrogen Fund, the collaboration between EIB Global and the German Ministry for Economic Affairs and Climate Protection gains further strength. The ability to offer investment grants enhances the fund’s impact, making it more attractive for projects that may be deemed too risky by traditional investors. Supported projects are anticipated to catalyze follow-on investments, contributing to the fund’s overarching goal of facilitating large-scale green hydrogen production.
