10004174 - Engineering support for the development of up to three PtL pilot plants in up to three countries

The International Power-to-X Hub is implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) and is financed through the International Climate Initiative as part of Germany"s hydrogen and Power-to-X policy framework. The International Power-to-X Hub supports the transition to climate-neutral industries and economies by promoting sustainable Power-to-X solutions where direct electrification is not yet feasible, especially in hard-to-abate sectors such as aviation, maritime transport, and energy-intensive industries. Power-to-X enables the production of fuels and chemical feedstocks from renewable electricity and sustainable carbon or nitrogen sources and is therefore a key instrument for replacing fossil-based inputs in sectors including chemicals, fertilisers, steel, cement, aviation, and shipping.

The project is based on the understanding that renewable electricity must be used directly wherever possible and that Power-to-X should be applied specifically in areas where no more efficient decarbonisation option is currently available. The PtX Hub has already supported partner countries in developing allocation scenarios for hydrogen and other PtX products, including related value chain analyses. Current and previous activities have been carried out with public-sector partners in Morocco, South Africa, Kenya and Argentina, as well as in other countries of the Global South.

At the same time, the International Power-to-X Hub recognises the major development opportunities associated with sustainable PtX markets, particularly for countries with strong renewable energy potential, which can reduce dependence on fossil fuel imports, lower emissions, build new value chains, and position themselves in emerging international markets for climate-neutral fuels and products. A central principle of the project is that sustainability must guide market development from the outset. Power-to-X is only climate-compatible when based on renewable electricity and robust environmental and social standards across the value chain, supported by appropriate certification systems and reliable investment conditions.

To date, the PtX Hub has helped identify concrete business cases and derive recommendations for improving regulatory frameworks for sustainable PtX markets. These activities are intended to support pilot-scale implementation and prepare partner countries for the future domestic use and export of electricity-based sustainable fuels. Working with public and private sector partners, we aim to accelerate practical, country-specific pathways towards the production and use of sustainable hydrogen derivatives, e-fuels, and other PtX products, thereby contributing to global climate goals and long-term sustainable economic transformation.