KGAL ESPF 6 Energy Transition Fund is set to play a major role in the development of one of Europe’s most significant green hydrogen hubs in Lubmin, Germany. Located at the Baltic Sea port in Mecklenburg-Western Pomerania, this project will boast a total capacity of up to 1,050 megawatts and is part of Germany’s largest planned green hydrogen production and import center, with strategic importance across Europe. The initiative is being driven by PtX Development GmbH and green energy specialist GP JOULE, in partnership with KGAL.
The Lubmin project will be developed on the site of a former nuclear power plant, with land already secured. In its initial phase, set for completion in 2028, the project will install 210 megawatts of electrolysis capacity. Another 840 megawatts will be added in subsequent phases. GP JOULE, a pioneer in the hydrogen sector since 2012, will serve as the project developer.
Strategic Location and Infrastructure Benefits
The Lubmin hub benefits from ideal conditions for green hydrogen production and commercialization, including:
- Access to up to 2.8 gigawatts of offshore wind energy for electrolysis
- Baltic Sea water availability for hydrogen production
- Direct connection to the extra high voltage electricity grid via provider 50Hertz
- Integration into Germany’s hydrogen core network, which will transport hydrogen to key industrial regions such as Stuttgart, Frankfurt-Höchst, and Bitterfeld
- Access to major green hydrogen consumers along the 9,700-kilometer core network, particularly in chemical and industrial sectors
With four other projects also planned for Lubmin, the site is projected to reach a total electrolysis capacity of 4 gigawatts, making it a central hub for both hydrogen production and imports through the port. By comparison, Germany’s current electrolysis capacity is less than 1 gigawatt.
Driving Europe’s Green Hydrogen Economy
Thomas Engelmann, Head of Energy Transition at KGAL, highlighted the significance of the project:
“Lubmin, together with the hydrogen core network, will make a major contribution to decarbonizing Germany’s economy. This is impact investment at its finest.”
KGAL ESPF 6 is investing in the project at an early stage, allowing investors to engage in the entire value chain. Engelmann added, “Professional partners are key to early-stage investments. PtX Development and GP JOULE have impressed us with their strategic vision and successful track records.”
Dr. Alan Cadmus, Managing Partner of PtX Development GmbH, emphasized the scale of the project:
“Lubmin is a unique initiative and will be a key player in developing Germany’s hydrogen economy. With KGAL and GP JOULE, we have the perfect partners to bring this project to life quickly and effectively.”
Ove Petersen, CEO and co-founder of GP JOULE, stressed the importance of green hydrogen for future energy systems:
“Our vision is 100 percent renewable energy for all. Hydrogen production plays a critical role in integrating renewable energy into the system of the future. In Lubmin, we are demonstrating how this can be achieved.”
A Second Major Project for KGAL ESPF 6
Lubmin is the second flagship project for the KGAL ESPF 6 impact fund, following its investment in the Arcadia e-kerosene production plant in Denmark. The fund’s investment pipeline spans nine European countries, with a combined electrolysis capacity of 18.5 gigawatts and a total volume of €1.4 billion.
Carolin Vormann, Head of Institutional Business at KGAL, emphasized the company’s role in driving energy transition projects:
“In the rapidly growing field of green hydrogen, access to key projects and deep market knowledge are essential. KGAL’s expertise, demonstrated by our management of KfW Bankengruppe’s €270-million development fund for green hydrogen projects, positions us as a leader in this transformative sector.”
This investment highlights KGAL’s commitment to advancing Europe’s green hydrogen economy and driving the continent toward a sustainable, decarbonized future.
