Market insights

Green hydrogen technology

the key to net-zero CO2 emissions energy

The pressing need for climate-friendly energy is omnipresent. While renewable sources like solar and wind power have become economically viable and readily available, the challenge of energy storage and shipping has remained daunting.

That has changed.

Recent advances in green hydrogen ecosystems not only enable easier and more cost-effective handling of the energy carrier, but also open up vast opportunities for the Global South.

India as a case in point

India has clearly stated its ambition to become a global hub for green hydrogen production and export. In August 2023, India for the first time set national standards for green hydrogen, placing limits on emissions for renewable- powered hydrogen production from biomass and electrolysis. It has also organized a cross-ministerial administrative structure for rapid development and deployment.

Limited access to global capital

Despite the obvious advantages, investors in the Global North have been reluctant to commit to the South.

We know the advancement in technology is not enough. To fulfill the promise and potential of green hydrogen, we need to ensure smooth capital flow to fund this sustainable future energy source. Our Duty of Care demands that we deploy the resources and capital at our disposal to make the future livable for the generations that will follow us. We aim for a future that works for all of us: the good of the many, not the few. We would be pleased to discuss the mechanisms we propose to achieve this essential objective.

“These models are adaptable and scalable, offering the countries of the Global South a chance to leap ahead of traditional fossil fuel economies toward a sustainable future.”

Our experience has shown that a significant number of long-term international investors will invest only in projects that comply with our methodology. Why? Because they are familiar with our way of working and have had 20 years of experience with it during their relationship with international cross-border finance ecosystems. Our track record in delivering outstanding large-scale country transformation projects speak for itself.

For our investors, portfolio diversification is a key driver, and it is our responsibility to highlight comparability of performance, including country risk, FX risks and counterparty risks. In short, they trust our ability to build structured finance vehicles that meet their criteria and hire us as their risk management insurers during the lifecycle of the project, as they have highly appreciated our risk mitigating approach for years.

Given the urgent need to counter climate change and the heightened international interest in green hydrogen, our partners have mandated us to create a neutral and trustworthy ecosystem designed to build and finance green hydrogen infrastructures all around the world.

Benefits for green hydrogen country producers

To sum up, the future belongs to those who write their own rules and utilize their own unfair advantages over competitors. Many nations of the Global South are equipped with assets that most European countries can only dream of – like plentiful renewable energy, thriving high-value agriculture and a young and eager workforce.