International Financing for Power-to-X Projects

As hydrogen and its derivatives are essential for decarbonising our economy, projects to build up production capacities must be initiated. The potential for producing carbon-neutral synthetic fuels is very high, especially in developing and emerging countries. Establishing value chains and a market for power-to-X technologies can not only help these countries become less dependent on fossil fuels and their imports, but at the same time contribute to shaping a low-carbon economy. This can be achieved through the export of carbon-neutral fuels and basic materials.

However, access to financing is complicated, which slows down market development. As many technologies for the production of synthetic fuels have only recently become available on the market, financing instruments are needed to advance the development of these technologies. In order to better understand the characteristics of investments in PtX projects, adelphi was commissioned by GIZ and the PtX Hub to conduct a comprehensive study on existing global financing instruments. This is intended to improve access to finance in the future. 

The aim of the project was to develop a concept for the financing and establishment of funding instruments for PtX projects in emerging and developing countries, so that these can be passed on to decision-makers and financial institutions.