KGAL’s Sixth European Energy fund to Invest in 1 GW Project
KGAL’s sixth European energy fund is making a notable investment in a 1 GW green hydrogen project in Lubmin, Germany. The firm’s ESPF 6 fund is collaborating with project initiator PtX Development and German green energy specialist GP Joule, though the exact investment amount remains undisclosed, according to IPRealAssets.
The developers of the plant are among many aiming to install gigawatts of electrolysers in Lubmin.
The project will be developed on the site of a former nuclear power plant. The first phase, expected to be completed by 2028, will involve installing around 210 MW of electrolysis capacity, with initial costs estimated at approximately €500 million. An additional 840 MW will be added in subsequent stages during the second phase.
Alan Cadmus, managing partner of PtX Development, commented, “Lubmin is a distinctive project. This site is one of Germany’s key centers for advancing the hydrogen economy on a European level. With KGAL and GP Joule as our strong partners, we are well-positioned to successfully realise and expedite the project.”
Ove Petersen, CEO and co-founder of GP Joule, stated, “Our vision at GP JOULE is to achieve 100% renewable energy for everyone. Onsite hydrogen production is crucial for integrating green energy into the future energy system. It enables us to collect, convert, and utilise vast amounts of renewable electricity at any time. In Lubmin, alongside KGAL and PtX Development, we are demonstrating how this can be achieved.”
Thomas Engelmann, head of energy transition at KGAL, emphasised, “Together with the hydrogen core network, Lubmin will play a vital role in decarbonising the German economy. This is the epitome of impact investment.”
Carolin Vormann, head of institutional business at KGAL, added, “In the rapidly growing sector of energy transition—especially in green hydrogen—gaining access to projects and market knowledge is crucial for success.”
Spanish gas distributor Redexis has started blending green hydrogen into Mallorca’s national gas grid via the country’s “first” pipeline. Understood to be Europe’s largest fully commissioned green hydrogen blending project, the 3.2km pipeline will transport the fuel via the existing 1,400km gas network in Mallorca. The network’s hydrogen blend is reported to be 2%.
The green hydrogen will be sourced from Acciona Energía and Enagás’ 2.5MW hydrogen production site in Lloseta and transported to the Cas Tresorer injection point on the 1,400km gas grid, responsible for over 115,000 homes and businesses.
“With the first injection of green hydrogen into the natural gas network, we not only reaffirm Redexis’ commitment to sustainability, but we also establish a pioneering model that can be replicated in other regions and countries, since there is currently no blending project of this magnitude in Europe,” explained Fidel López Soria, CEO of Redexis.
“We are taking a decisive step towards a cleaner and more renewable future, demonstrating that infrastructure has the power to tangibly and effectively transform our continental energy system,” the CEO added.
Margalida Prohens, President of the Government of the Balearic Islands, said, “The Balearic Islands are taking another step on the road to energy transition by being pioneers in the implementation of the first hydrogen pipeline.
“A clean energy that is essential to contribute to the decarbonisation of our islands and also essential in the fight against climate change. It is also an opportunity for the re-industrialisation of our islands, making them benchmarks for innovation and attracting green investment.”
