German fund offers Sh42bn grant for Africa hydrogen projects

Germany’s Power-to-X Development Fund (PtX) has announced a call for proposals where applicants from Kenya and other countries stand to benefit from €270 million (Sh42 billion) grant.

The grant aims to support developers to boost hydrogen production in a selected list of countries including Morocco, South Africa, India, Georgia and Brazil.

“The goal of the PtX Development Fund is to provide non-reimbursable grants to industrial-scale projects at various stages along the green hydrogen value chain,” the fund said in a statement.

The grant is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and managed by KfW a German state-owned investment and development bank with €270 million to support the production and use of renewable hydrogen.

It will target industrial-scale projects at various stages along the green hydrogen value chain including production, processing, storage, transportation, distribution and application of green hydrogen.

Green hydrogen derivatives include green ammonia used as a feedstock for fertiliser production or as an energy carrier and methanol can be synthesised for use as fuel or a solvent among other chemicals. Interested parties must submit their proposals before the March 1 deadline.

Under the programme, industrial projects meeting specific criteria could secure grants of up to €30 million (Sh4.6 billion), and the size will vary depending on the scope and nature of the proposed project.

Interested parties can be governmental or public organisations, private enterprises, public–private partnerships, joint ventures of private companies, or a special purpose vehicle of the project.

Green hydrogen is currently regarded as an eco-friendly alternative to oil. As the global shift towards more sustainable practices accelerates, there is a projected exponential increase in the demand for green hydrogen.

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