Independent investment and asset manager KGAL GmbH & Co KG has announced an investment in a green hydrogen project with a capacity of up to 1,050 MW, initiated by PtX Development GmbH and developed by GP JOULE at the port of Lubmin on the Baltic Sea.
This investment is made through the KGAL ESPF 6 Energy Transition Fund, although financial details have not been disclosed.
The Lubmin project will be implemented in two phases. The first phase, expected to be completed by 2028, will establish an electrolysis capacity of approximately 210 MW. The subsequent phase will incrementally add 840 MW of capacity.
The project site, which has been secured at the location of a former nuclear power plant, will utilize nearby resources, including up to 2.8 GW of offshore wind energy and water from the Baltic Sea.
It will also benefit from a connection to the extra-high-voltage electricity grid operated by 50hertz and will integrate into the German hydrogen core network, facilitating hydrogen transport to southern economic centers such as Stuttgart via Bitterfeld and the Frankfurt-Hochst chemical hub.
In addition to the Lubmin project, the site is expected to host four other projects, ultimately supporting around 4 GW of electrolyser capacity. Other companies engaged in green hydrogen initiatives at this location include APEX Group, Deutsche ReGas, HH2E, and Lhyfe.
The Lubmin venture represents the second investment for the KGAL ESPF 6 impact fund, following its commitment to the Arcadia e-kerosene production plant in Denmark.
The fund's broader pipeline encompasses an investment volume of EUR 1.4 billion (USD 1.56 billion) across nine European countries, with a total projected electrolysis capacity of 18.5 GW.
