KfW IPEX-Bank provides financing for hydrogen core network in Germany

KfW IPEX-Bank is providing EUR 150 million to Nowega, one of the 16 transmission system operators in Germany, with a further EUR 30 million being contributed by DekaBank. Nowega is planning an extensive investment programme in hydrogen and gas infrastructure in the coming years. The current financing is for the conversion and expansion of hydrogen infrastructure and the development of biogas infrastructure. HKCF has advised its long-standing client Nowega on the long-term financing contracts for this investment project.

The hydrogen infrastructure is to be developed essentially by converting existing gas pipelines - the first gas pipelines have already been successfully converted in preparation for the future transport of hydrogen. KfW IPEX-Bank had already provided Nowega with a loan of EUR 40 million for this purpose in 2020.

Aida Welker, Member of the Management Board of KfW IPEX-Bank: "We are very pleased to be able to support our customer Nowega once again. Maintaining and expanding the German and European energy infrastructure is a key concern of our bank, and our financing for the hydrogen core network contributes to the transformation of energy supply as well as to security of supply."

About Nowega GmbH
Nowega GmbH is a transmission system operator based in Münster. The subsidiary of Erdgas Münster GmbH operates, maintains and markets a total of 1,500 kilometres of high-pressure gas pipelines with around 150 employees. The pipeline network stretches from the Dutch border across Lower Saxony and parts of North Rhine-Westphalia to the Wendland region and is part of the intra-European transport routes for natural gas. Nowega is part of the GET H2 hydrogen initiative and is involved in several projects to develop the hydrogen network for Germany.