Germany has committed itself to becoming climate neutral by 2045 - and to supporting other countries in their climate goals. Alongside renewable energies and energy efficiency, green hydrogen as an energy carrier is the third pillar of the energy transition. The basis for this is Power-to-X (PtX), i.e. the conversion of energy from renewable sources (such as hydro, solar and wind energy) into the gaseous energy carrier hydrogen. In order to establish PtX technology on an industrial scale in the energy market, targeted government support is needed in addition to good framework conditions - worldwide. This is because the green hydrogen economy is characterised by global value creation and trade networks. The German government is therefore promoting the global market ramp-up of PtX. Only in this way can the goals of the Paris Climate Agreement be achieved with our combined forces.
To this end, the German government and KfW Group have pooled promotional and financing instruments on the PtX Platform. Funding is provided for projects along the entire PtX value chain: from the generation of green electricity through renewable energies to the production and transport of green hydrogen and derivatives. Derivatives include, for example, methane, methanol or ammonia, which are used in particular in heavy industry, aviation and shipping or in basic chemicals. The PtX Platform closes the bankability gap in the countries of the global South. The aim is to promote capital-intensive PtX projects that are not yet "bankable", especially in developing countries and emerging economies, in as uncomplicated a way as possible and thus close the existing financing gaps. The coordination is in one hand: KfW advises, puts together financing packages and accompanies the project implementation.
At the heart of the platform are the PtX Development Fund of the Federal Ministry for Economic Cooperation and Development (BMZ) and the PtX Growth Fund of the Federal Ministry for Economic Affairs and Climate Protection (BMWK). The aim of the PtX Development Fund is to support the establishment of local value chains and the use of hydrogen and derivatives in developing countries and emerging economies and to enable their connection to a technology of the future. Thus, the fund contributes to a social-ecological economic transformation in these countries and to a "Just Transition". The PtX Growth Fund is intended to support projects in other EU countries with the participation of European companies based or operating in Germany. The aim is to promote the international market ramp-up of green hydrogen.