- Up to EUR 550 million for the PtX Development Fund and PtX Growth Fund.
- Energy security, decarbonization and achievement of climate targets in partner countries.
- Basis for future hydrogen partnerships with Germany.
At the UN climate conference in Sharm-el-Sheik today, KfW, together with the Federal Ministry for Economic Cooperation and Development (BMZ) and the Federal Ministry for Economic Affairs and Climate Protection (BMWK), presented the world’s first financing platform for tailor-made financing of infrastructure for green hydrogen and launched its derivatives. The KfW PtX platform will house the PtX development fund and the PtX growth fund on behalf of the BMZ and the BMWK. This is intended to promote industrial projects for the production, transport, storage, use and further processing of green hydrogen, especially in developing and emerging countries.
The PtX platform offers investors targeted and interlocking financing products such as equity investments, loans and grants from KfW Development Bank and DEG from a single source. The PtX development fund enables developing and emerging countries or their state-owned companies, together with private financiers, to obtain structured project financing for the financing of plants for the production of green hydrogen. Grants and conventional promotional loans that contain market funds can be combined. The PtX growth fund is aimed at European companies and business consortia with their registered office or business premises in Germany to finance large-volume plants for the production, transport, storage and use of hydrogen and the necessary renewable energies.
“Green hydrogen and its derivatives have enormous potential to promote the global energy transition, a socio-ecological economic transformation and sustainable development, especially in developing countries. In order to increase energy security, decarbonization and the achievement of climate targets, KfW therefore offers financing from KfW Development Bank and DEG from a single source. In addition, the early development of a local hydrogen market in the respective countries as a basis for future hydrogen partnerships with Germany is of the utmost importance,” said Christiane Laibach, member of the Executive Board of KfW Bankengruppe.
With the participation of the federal government and the financing by KfW, there is a significant potential of more than EUR 2.5 billion to leverage private investments that are essential for the development of hydrogen production.
The potential for the production of green hydrogen is greatest in the countries of the Global South. Nevertheless, there is a risk that a strategic “gap” will appear for developing countries at an early stage of market development that can no longer be made up for. It is therefore a development policy task to support these countries. 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. In addition, there are great opportunities to position German companies in the important future market of green hydrogen.
There are particularly good starting conditions for plants 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. Projects in developing and emerging countries can be funded through the PtX development fund. Projects outside of Europe can be financed via the PtX growth fund.
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