Germany is among the leading nations in climate action with a commitment to reaching net zero by 2045, and to supporting other countries in reaching their climate goals. To this end, the German Federal Ministry for Economic Cooperation and Development (BMZ) has entrusted KfW with €270 million of funds to support Power-to-X markets in developing and emerging countries. KfW has set up Power-to-X D&G GmbH (hereinafter the “PtX Development Fund”) for these purposes. The goal of PtX Development Fund is to provide non-reimbursable grants to industrial-scale projects at various stages along the green hydrogen value chain including production, processing, storage, transportation, distribution and application of Power-to-X technologies as well as additional associated measures for the generation of renewable energy.

PtX Development Fund allocates grants for capital expenditure such as construction, installation, modernization or expansion of infrastructure of Power-to-X projects in order to make them bankable. Supplementing PtX Development Fund, a broad range of innovation and investment financing can be provided by KfW Group’s PtX Platform - including KfW's three business areas DEG, IPEX and KfW Development Bank. Serving as a one-stop-shop, KfW’s PtX Platform offers a broad range of financing instruments, including grants, promotional loans, equity and debt financing as well as mezzanine financing.