Research, innovation and digitalisation Decarbonising climate-related sectors of the economy in a socially just manner and developing the sectors of the future: The example of the PtX Development Fund

Green hydrogen plays a pivotal role in a comprehensive energy transition: It is climate-neutral, can serve as energy storage and can be employed in many different ways in industrial production. One example is the production of fuels, particularly in situations in which the more efficient direct use of renewable electricity is not possible.

The aim of the Power-to-X Development Fund resourced by the Federal Ministry for Economic Development and Cooperation (External link) is to create local value chains and conducive economic policy settings for the establishment of local hydrogen economies and thus to contribute to a social-ecological transformation of economic systems – in conjunction with positive feedback on transformation within Germany.

Initiated by the BMZ and resourced with 270 million euros, the PtX Development Fund is a part of KfW Group’s PtX Platform for market ramp-up of green hydrogen in the Global South. The Fund shall mobilise further private capital. The contract for the first project, Egypt Green Hydrogen (EGH) with a 30 million euro grant, was signed on 8 October 2024 at the Hamburg Sustainability Conference.