KGAL’s sixth European energy fund is investing in a 1GW green hydrogen project at Lubmin in Germany.
The firm’s ESPF 6 fund is making an undisclosed investment in the Baltic Sea port project in Mecklenburg-Western Pomerania, partnering with project initiator PtX Development and German green energy specialist GP Joule.
The Lubmin project is being developed on the site of a former nuclear power plant. The first phase, scheduled for completion in 2028, will involve installing an electrolysis capacity of approximately 210MW. IPE Real Assets understands that the first phase of the project is estimated to cost around €500m.
A further 840MW will be added in stages during the second phase.
Alan Cadmus, managing partner of PtX Development, said: “Lubmin is a unique project. The site is one of the key centres for the development of the hydrogen economy in Germany, on a European scale. With KGAL and GP Joule, we have two strong project partners at our side, to successfully realise the project and implement it quickly.”
Ove Petersen, CEO and co-founder of GP Joule, said: “GP JOULE’s vision is 100% renewable energy for all. The onsite production of hydrogen plays a decisive role in the integration of green energy into the energy system of the future.
“It allows enormous amounts of renewable electricity to be collected, converted and utilised at any time. In Lubmin, together with KGAL and PtX Development, we are showing how it’s done.”
Thomas Engelmann, head of energy transition at KGAL, said: “Together with the hydrogen core network, Lubmin will make a significant contribution to the decarbonisation of the German economy. This is impact investment par excellence.”
Carolin Vormann, head of institutional business at KGAL, said: “In the dynamic growth area of energy transition – and in particular green hydrogen – access to projects and market knowledge are the most important factors for success.
“KGAL has both of these, demonstrated not least by the fact that KfW [Bankengruppe] has entrusted KGAL with the management of its €270m development fund for green hydrogen projects.”
In October last year, KGAL was hired by German government-owned development bank KfW to manage a green hydrogen projects development fund. The PtX Development Fund expects to invest billions of euros to promote the development of green hydrogen projects in developing and emerging economies.
The fund, financed by the German Federal Ministry for Economic Cooperation and Development, will provide financial support for public organisations and private companies to develop the green hydrogen value chain, KGAL said at the time.
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