The government of Germany is establishing two new funds with a total of 550 million euros to support the development of the global hydrogen economy through cooperation, particularly with emerging and developing countries. These funds will be set up by the German government. In order to encourage investments in hydrogen infrastructure in these nations, the Ministry of Development will make accessible 250 million euros to contribute to the PtX Development Fund. In addition, the Ministry of the Economy is establishing the PtX Growth Fund with a capitalization of 300 million Euros.
Companies in Germany will benefit from this, and the overall goal is to speed up the development of the green hydrogen market and the infrastructure necessary to support it. The KfW, a state-owned development bank, will be in charge of disbursing these funds and administering the projects that will be supported by them along the entire value chain. According to Development Minister Svenja Schulze, green hydrogen could become a “beacon of hope” for a future climate-friendly economy not only in developed countries but also in developing countries.
During a press conference at the United Nations Climate Change Conference (COP27), she stated that many developing countries have a significant potential for wind and solar power and therefore offer the best conditions for the production of environmentally friendly hydrogen. However, there was still a chance that they would be left out of the value chains of the future. This is due to the fact that subsidy programs have, up until this point, primarily existed in wealthy countries. According to the minister, “the old fossil economy must give way to the new green hydrogen economy, which must become more just.”
The two new funds are designed to supplement the existing support concept that the government has in place, which is worth multiple billions of euros and includes an auction for green hydrogen imports called H2 Global. In the battle against climate change, hydrogen produced through the use of renewable electricity is coming to be seen as a panacea for industries that produce emissions that are notoriously difficult to reduce, such as the manufacturing and transportation industries.