Germany/Egypt – At the UN climate conference in Sharm el-Sheikh, KfW presented the first financing platform in the world for specialized financing of green hydrogen infrastructure and introduced its derivatives along with the Federal Ministries for Economic Cooperation and Development (BMZ) and for Economic Affairs and Climate Protection (BMWK).
The PtX development fund and the PtX growth fund will be hosted on the KfW PtX platform for the benefit of the BMZ and the BMWK. This is intended to promote industrial projects for the production, transportation, storage, consumption, and further processing of green hydrogen, particularly in developing and underdeveloped countries.
With the use of the PtX platform, investors can access a variety of integrated and customized financing options, including grants, loans, and equity investments from KfW Development Bank and DEG. State-owned businesses from developing and emerging countries, as well as private financiers, are now able to obtain structured project financing for the development of green hydrogen production facilities thanks to the PtX development fund. Grants and conventional promotional loans may be combined with market capital.
For European businesses and business consortiums with their registered office or company premises in Germany, the PtX growth fund is intended to provide financing for large-scale facilities for the production, transportation, storage, and consumption of hydrogen as well as the necessary renewable energies.
With the help of the federal government and finance from KfW, there is a substantial potential to leverage private investments worth more than EUR 2.5 billion that are essential for the expansion of hydrogen production.
The potential for manufacturing green hydrogen is greatest in the developing world. However, there is a possibility that early in the market’s development, developing countries would encounter a strategic “gap” that cannot be filled. As a result, helping these countries is a responsibility of development policy. Each country’s hydrogen market’s rise also offers opportunities for the local population to receive training and find rewarding jobs. Furthermore, there are great opportunities for German companies to obtain a competitive edge in the future’s sizable green hydrogen industry.
The regions with the best initial circumstances for green hydrogen production plants are the Middle East, North Africa, Southern Africa, Latin America, and the countries of Eastern and Southeastern Europe. Initiatives in developing and emerging countries can be sponsored with the help of the PtX development fund. Projects outside of Europe may be financed with the help of the PtX growth fund.