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 a focus on financing projects in developing and emerging economies. This was announced on November 15th by German Development Minister Svenja Schulze and Stefan Wenzel, Parliamentary State Secretary at the German Economic Affairs Ministry, at the 27th UN climate conference in Sharm el-Sheikh, Egypt.
The effort will be based on two pillars. The Development Fund, under the responsibility of the BMZ, will be provided with 250 million EUR. The Growth Fund, under the responsibility of the BMWK, is to be provided with 300 million EUR. The PtX Development Fund is intended to assist developing and emerging economies in building local value chains around green hydrogen. The PtX Growth Fund will support German and European companies that have an office or production facilities in Germany. Its purpose is to provide grants to support investments that boost the economy and are able to contribute to accelerating the global market for green hydrogen.
They are intended to help reduce the funding gap for large-scale green hydrogen projects. They will provide 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.
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.
- Joint Press Release by BMZ and BMWK (15.11.2022): Germany accelerates climate action through global scale-up of green hydrogen economy