Germany contributes to EIB Hydrogen Fund to help developing countries
The Green Hydrogen Fund, initiated by the European Investment Bank (EIB), has received additional funding from Germany, expanding its capabilities to support the global expansion of the hydrogen economy. Established in 2021 and administered by the EIB, the fund will now offer investment grants alongside strategic advice and technical assistance to developing countries for initiatives involving green hydrogen.
The inclusion of investment grants is deemed significant, as it enables the fund to have a more substantial impact on projects often deemed too risky by conventional investors. The EIB asserts that this extra funding will help bridge the financing gap for large-scale green hydrogen initiatives.
Notably, the fund supports investments and advisory services across the entire value chain, encompassing the production, processing, storage, and transport infrastructure for green hydrogen and related downstream products.
In essence, the Green Hydrogen Fund aims to contribute to the global energy transition, fostering sustainable, emission-free economic development and aiding in the attainment of climate goals. Additionally, the EIB highlights its potential to enhance the energy security of the European Union.
The EIB also underscores that this funding replenishment signifies a reinforced collaboration between its development arm, EIB Global, and the German Ministry for Economic Affairs in the green hydrogen sector.
EIB President Werner Hoyer said, “Green hydrogen can help industries reduce their carbon footprint. The countries of the Global South have enormous potential to produce the renewable energy needed for green hydrogen. With the Green Hydrogen Fund, we are building a bridge between the innovative projects required to limit global warming to an acceptable level and the economic development of countries and regions most affected by the consequences of climate change.”
He further added, “Together with the German Ministry for Economic Affairs and Climate Protection, we will offer technical assistance and investment grants through the fund. This will enable our partners to integrate green hydrogen into their climate action plans and develop infrastructure projects that can make green hydrogen a reality on a large scale.”
