Financing gaps in Green Hydrogen and Power-to-X projects in non-OECD countries


Project team:

Maria Jesus BaezDirector
Diogo da Conceição RegoProject Manager
Yamini JainProject Manager


Description of the Project

Power-to-X (PtX) technologies have the potential to significantly contribute to the goal of limiting global warming to 1.5°C. In its path to climate-neutrality, the EU aims to produce 10 million tonnes and import 10 million tonnes of renewable hydrogen by 2030.

H2Global has the important role to accelerate the global PtX market ramp-up through the first international tender of PtX products (Green Ammonia, Green Methanol, and Sustainable Aviation Fuel). Non-OECD countries, e.g., India, Morocco, Brazil, have a great potential to develop a local clean energy economy and become reliable PtX suppliers.

The Frankfurt School UNEP Centre, together with its partners, provided advisory work to H2Global, with the aim to build a deeper understanding of the financing gaps that PtX projects face in selected non-OECD countries.

The work focused on identifying the main barriers and perceived risks, as well as the key success factors, of PtX projects in those countries. The team interviewed key stakeholders, e.g., project developers and operators, development finance institutions, commercial banks, and financial investors, and analysed the risk-return profiles for typical PtX business models and the impact of the cost of capital on the levelized cost of hydrogen (LCOH).