Germany aims to encourage the growth of the hydrogen economy internationally and has established two new funding pools totaling 550 million euros.

At the COP27 in Sharm el Sheikh, Egypt, this was declared by Minister of Development Assistance Svenja Schulze (SPD) and Parliamentary State Secretary for the Federal Ministry of Economics Stefan Wenzel (Greens).

The Ministry for Development Aid is in charge of one of the two funds, which has a volume of 250 million euros, which is designated for hydrogen projects in developing and rising nations. The Ministry of Economic Affairs is in charge of the other, which is worth 300 million euros and aims to encourage the use of hydrogen and the infrastructure needed for it generally.

According to Schulze, hydrogen is a “vital technology” and a “true light of hope.” It can take the place of fossil fuels in industry. The waste product is then water rather than the climatically destructive carbon dioxide. Energy can be stored in hydrogen as well. However, its extraction requires a lot of energy. The green hydrogen created in this way has a very favorable climatic balance when renewable energies like the sun or wind are utilised.

Germany now has a subsidy program in place for imports of hydrogen through buying. The KfW development bank will oversee the new funds, which will hasten the creation of a global hydrogen value chain.

Both funds will be introduced before the year is out.