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UNEP Centre and H2Global

Frankfurt am Main, 21.03.2023 12:00:00

The Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance together with partners prepared a new report titled "Financing of PtX Projects in Non-OECD Countries". It highlights financing gaps for green hydrogen projects and renewable fuel technologies from electrical energy, so-called Power-to-X (PtX) technologies, in countries outside the OECD.

PtX technologies can produce renewable fuels without biological origins, which can help limit global warming to 1.5°C. However, there are several challenges that are hindering the development of this industry. An important question is the investment security, the regulatory framework, which is currently being discussed by the European Commission. Another critical point is the securing of demand through offtake agreements. H2Global plays an important role in accelerating the international market's growth through an innovative and efficient financing mechanism supported by the German Federal Ministry for Economic Affairs and Climate Action (BMWK).

The H2Global Foundation has identified the need to learn more about the financing gaps for green hydrogen and PtX projects in Non-OECD countries. These countries have significant potential to develop a clean energy economy and become global suppliers. The new report identified obstacles, risks, and success factors by consulting stakeholders such as project developers, financial institutions, and investors. The report also analysed the return-risk profiles of PtX business models and the impact of capital costs on hydrogen costs.