Source: Energy & Management Powernews, November 16 2022
By setting up two new funds, BMZ and BMWK want to promote the development of a global infrastructure for green hydrogen. 550 million euros should be available for this.
Germany wants to push the development of a green hydrogen economy together with emerging and developing countries. For this purpose, an additional 550 million euros should be made available, announced the Parliamentary State Secretary in the Federal Ministry of Economics, Stefan Wenzel (Greens), and Development Minister Svenja Schulze (SPD) at the UN Climate Change Conference in Sharm el-Sheikh. Accordingly, two hydrogen funds are to be created to provide targeted support: A development fund with a volume of 250 million euros is to promote hydrogen investments in developing and emerging countries. A growth fund with a volume of 300 million euros is to accelerate the global market ramp-up and infrastructure for green hydrogen overall.
"Germany is pushing ahead nationally and internationally with the development of climate-neutral energy networks, based on green hydrogen wherever possible," Wenzel said. "Because wherever we can't make the energy supply carbon-free with renewable, clean electricity and with more energy efficiency, we need green hydrogen or its derivatives." The current energy crisis due to Russia's war of aggression is accelerating this development, he added.
Developing countries offer "best conditions"
"Not only climate change, but also the current energy crisis is teaching us around the world how important it is to build alternatives to coal, oil and gas," Schulze emphasized. Green hydrogen is "a key technology" in this regard. The minister pointed out that many developing countries offer ideal conditions for the production of green hydrogen. However, it must be ensured that these are not "excluded from the value chains of the future."
"The new green hydrogen economy must become fairer than the old fossil economy," Schulze demanded. Not only the production, but also the use of green hydrogen in developing countries should be promoted, he said. One of the partner countries is to be South Africa.
Funding volume of up to 2.5 billion euros
The growth fund is also aimed at German and European companies, which are to contribute their own capital to the initiative. The new funds and promotional offers are to be managed by the federally owned development bank KfW. Depending on the situation in the recipient country, some of the funds will be granted in the form of loans. Wenzel said that using KfW funds as well, a total volume of 2.5 billion euros could be generated for development projects.
The ministries involved referred to the broad spectrum of applications for green hydrogen. It could be used as a natural gas substitute for CO2-free steel and metal production or as e-kerosene for aviation, shipping or heavy-duty trucks. It is also possible to produce fertilizers from green ammonia.
Green hydrogen or ammonia are produced using renewable energies (PtX). Water or, for ammonia, nitrogen are available in practically unlimited quantities as raw materials. CO2 emissions do not occur during the process itself. The new funds are also intended to promote the development of transport infrastructure and storage.
Author: Heike Gillis
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