The Green Hydrogen Business Alliance aims at contributing to a socio-ecological transformation in cooperation with the private sector.
It was established in 2019 on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) and is implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
What we do
The Green Hydrogen Business Alliance supports the market ramp-up of green hydrogen while contributing to a sustainable development of partner countries. It identifies the challenges of the market and develops solutions together with the private sector.
The activities of the Business Alliance focus on countries with considerable potential for the production of green hydrogen. Key criteria in this context include the potential for expanding renewables, the willingness of policymakers to develop a green hydrogen sector and already existing industrial infrastructure in cooperation with private companies. The Green Hydrogen Business Alliance is active in multiple partner countries such as Algeria, Brazil, Morocco, Namibia, South Africa and Tunisia.
H2 Network –
The Hydrogen Sector’s Network
The Green Hydrogen Business Alliance serves as a cross-point between the private sector and the BMZ. It connects stakeholders along the entire value chain. The Business Alliance promotes continuous dialogue and exchange of knowledge with the BMZ, for example through network and dialogue events. It also creates incentives for private German and European enterprises to enable a sustainable market ramp-up of green hydrogen and PtX.
H2 Projects –
Support For Industrial Projects
To get the market up and running and reduce the cost of green hydrogen, it is essential to expand production through large-scale projects. This involves identifying and supporting the business network’s sustainable project ideas along the value chain.
H2 Market –
Support For Local Market Development
The Green Hydrogen Business Alliance supports local market development of green hydrogen and PtX in defined partner countries. Through project development mechanisms and studies, it identifies business scenarios and potential for value creation from an economic and developmental perspective and makes them available for project and political decisions.
H2 Finance –
Tailor-made financing is essential for strengthening the competitiveness of the partner countries in the global market ramp-up. Therefore, the Business Alliance reviews existing mechanisms for their applicability and initiates new funding mechanisms, such as H2Global or KfW’s PtX-development fund, which are geared to the needs of the private sector.
Example: The funding instrument H2Global was developed within the Business Alliance in collaboration with the German Hydrogen and Fuel Cell Association (DWV). In summer 2021, H2Global was spun off into its own organizational structure, the H2Global Foundation in Hamburg. The Green Hydrogen Business Alliance continues to be associated with the foundation H2Global, but is no longer involved in the implementation of the funding instrument.
Green Hydrogen and PtX for a Just Transition
Alternatives to fossil fuels are essential for the long-term success of the energy transition and for the socially just and environmentally responsible transformation of our economy. Green hydrogen and its derivatives (Power-to-X/PtX) play a key role in these efforts as versatile energy sources and basic materials for the chemical industry. At the same time, they create opportunities for sustainable development in our partner countries.
Green hydrogen and PtX can help to reduce CO2 emissions, especially in areas where it is not possible to increase energy efficiency or to use electricity generated directly from renewables. Examples include the fertiliser and steel industries, aviation and heavy goods transport. Hydrogen demand in Germany alone will increase from the present level of around 60 TWh to as much as 110 TWh annually by 2030. Significant imports from partner countries will also be needed to meet the growing demand.
However, the cost of producing green hydrogen is currently too high and the production capacities are too limited. Moreover, there is still no reliable framework in place for the profitable sale of green hydrogen.
Cooperation with the private sector is particularly important in establishing a functioning market and industrial production capacities for green hydrogen and its derivatives.
In addition to diversifying German energy imports, the positive effect is threefold: while green hydrogen contributes to the decarbonisation of global industrial value chains, the simultaneous development of industrial production facilities will give local economies a powerful boost and stimulate employment. This way, green hydrogen and PtX will contribute to a country’s climate-friendly and socially equitable development as part of a just transition. Strengthening local value creation and energy supply is essential to achieving a just transition in our partner countries.