German asset manager KGAL, through its ESPF 6 Energy Transition Fund, is investing in a green hydrogen project in the Baltic Sea port of Lubmin in eastern Germany.

The Lubmin project, which is being built on the site of a former nuclear power plant, will produce 100,000 tonnes of hydrogen annually with a total capacity of up to 1,050 megawatts. In the first phase, scheduled for completion in 2028, an electrolysis capacity of approximately 210MW will be installed. A further 840MW will be added in stages during the second phase.

Up to 2.8 gigawatts of offshore wind energy will be available for electrolysis, plus access to water from the Baltic Sea. A direct connection to Germany’s hydrogen core network is planned to transport the hydrogen from Lubmin via Bitterfeld and the Frankfurt-Höchst chemical triangle to economic hubs in the south of the country.

Watson Farley & Williams acted as legal counsel to the KGAL ESPF 6 Energy Transition Fund on its investment.

KGAL has partnered with PtX Development GmbH as project initiator and German green energy specialist GP Joule as project developer.

Founded in Berlin in 2020, PtX Development plans and develops sites for hydrogen production, combining extensive expertise in the hydrogen market and plant construction with many years of experience realizing complex construction and infrastructure projects.

GP Joule is an integrated energy supplier in all areas of the energy value chain, producing and marketing wind and solar power, green hydrogen and heat for both electric and hydrogen mobility and household and industrial use.

The Lubmin project is part of a planned hydrogen hub at the site with a total electrolysis capacity of  4GW. The centre will engage in the production and importation of hydrogen via the industrial port, and will be of strategic importance across Europe.

KGAL is a Munich-based independent investment and asset manager with €16 billion ( US$17.82 billion ) of assets under management. It focuses on long-term investments for institutional and private investors in the real estate, sustainable infrastructure and aviation sectors.