Green hydrogen and fuel cell technology

EXI projects for sustainable, decentralised energy supply

In many parts of the world, the energy supply is severely restricted by power failures or is only available off-grid, without a connection to the central power grid. In most locations with such a decentralised energy supply, environmentally harmful generators and fossil fuels such as petrol and diesel are used for energy generation. Green hydrogen and fuel cell technology and the development of local renewable energies enable the implementation of a sustainable, independent and prospectively also economical decentralised energy supply. The Export Initiative Environmental Protection (EXI) of the Federal Ministry for the Environment has been promoting projects in this field of action since 2021.

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Global need for resilient and environmentally friendly energy supply

Around 685.2 million people worldwide have no access to electricity¹, which is more than one and a half times the population figure of the European Union². In addition, approximately one billion people have to cope with power failures of more than 1,000 hours per year³. The number of people suffering from energy poverty is similarly high⁴. It is known that a reliable and environmentally friendly energy supply has a particularly positive impact on basic development indicators⁵.

In many parts of the world, energy is provided off-grid and decentralised, with the use of environmentally harmful generators and fossil fuels such as petrol and diesel in most places. According to estimates, 25-40 million diesel generators with a total capacity of 450-650 gigawatts are in use in the Global South for the generation of electricity, 20 million of which are stand-by units⁶, which generate backup power in the event of an unreliable supply. Power failures cause considerable economic damage and reduce the performance capacity of companies in the affected countries⁷. A World Bank study estimates the economic damage caused by power supply disturbances in South Asia at 4 to 7 per cent of the gross domestic product GDP⁸.

Green Tech solutions can cover the electricity needs

Green Tech solutions based on hydrogen and fuel cell technologies can help cover the global need for an environmentally friendly energy supply. This is due to the fact that the technical profile of fuel cells is ideal for the large-scale replacement of diesel generators. In combination with batteries, fuel cells make it possible to decouple energy generation and energy storage systems, thus providing energy over a long period of time in a resource-efficient manner with little space required. At the same time, fuel cells are durable, low in maintenance, locally emission-free and, when used with renewable energy sources, also climate-neutral.

When fuel cell systems are coupled with electrolysis, local or regional energy self-sufficiency can be accomplished by storing green hydrogen⁹. Germany has innovative companies, including many small and medium-sized enterprises, with long-standing experience in the development, production and application of these technologies.

Graphic with explanations of how hydrogen and fuel cell technology works — The demand for resilient and environmentally friendly energy supply can also be met through the decentralised use of hydrogen and fuel cell technology.

EXI activities in this field of action

The Export Initiative Environmental Protection has been promoting a wide variety of projects in its “Decentralised green hydrogen and fuel cell technology” field of action that support the transfer of know-how and the application of German environmental protection and resource efficiency technologies, prioritising emerging and developing countries. NOW GmbH implements the thematic focus on behalf of the Federal Ministry as a programme partner of EXI.

Since 2021, EXI has been promoting market preparation activities by German companies and research facilities that want to work together with local partners to accelerate the use of green tech solutions based on green hydrogen and fuel cell technologies, thus supplementing other funding programmes.

Pilot projects, feasibility studies and undertakings by the German Chambers of Commerce Abroad offer a wide variety of opportunities to activate international markets for the application of green hydrogen and fuel cell technologies, demonstrate technology solutions and ensure the higher-level knowledge transfer. For this, various types of projects can be implemented. The focus of funding is on pilot projects where technologies are implemented and their wide range of applications is demonstrated. For instance, the pilot projects will work out key findings regarding the integration of hydrogen and fuel cell technologies into local infrastructures such as mini-grids. In addition, the project implementation allows economic aspects relevant to the respective application to be analysed and optimised for the use of the technologies, or business models to be further developed accordingly. This will open up prospects for the achievement of a long-term foothold of the technologies in the partner markets. These undertakings also create first framework conditions in international markets and form the basis for knowledge building and transfer.

World Map | EXI activies in green hydrogen and fuel cell technology — Since 2021, EXI has implemented sixteen projects in fourteen countries focusing on green hydrogen and fuel cell technologies in decentralised energy supply (as of 03/2025).

Table | EXI activies in green hydrogen and fuel cell technology — Six of the seventeen EXI projects focusing on green hydrogen and fuel cell technologies in decentralised energy supply have an investment component (as of 03/2025).

Since promotion started back in 2021, a total of 17 projects in 14 countries have been supported with a total funding volume of approximately EUR 8 million up until the first quarter of 2025. Of this amount, around EUR 6.5 million were invested in the pilot projects ECO-FCGen, HyTra, HygO, GH2GH and Green H2Islands. Six of the 17 projects have an investment component, i.e. they implement measures comprising the establishment, expansion or adaptation of technical facilities and other local physical infrastructures.

The partnerships with local actors established by those implementing the project are key to the implementation. Feasibility studies can also be conducted via EXI on the range of topics that are strategically important for the field of action.

Furthermore, the Chambers for GreenTech of DIHK Service GmbH are important project partners. As part of initial projects, they explore and analyse existing market opportunities and specific environmental areas of application for green hydrogen and fuel cell technologies in decentralised energy supply. They use their strong local networks to build up and anchor knowledge on the range of topics in the respective partner markets.

Selected projects

Seventeen projects related to the green hydrogen and fuel cell technology field of action have received funds from the Export Initiative Environmental Protection of the Federal Ministry for the Environment. Many have already been successfully completed. Selected projects with a duration until 2025 or beyond are listed below.

AHK Ghana H2
In Ghana, rural areas are facing considerable challenges in electricity supply, which have not only economic, but also social consequences. Although the country has made progress in electrification, access to reliable and sustainable energy remains insufficient in many rural regions. The AHK Ghana project is aiming to expand the production, storage and use of green hydrogen through decentralised energy systems, so-called mini-grid systems, and to improve access to energy in remote areas.
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HyTra
HyTrA stands for Hydrogen Tryout Areal and describes a hydrogen biotope, at the centre of which lies a microgrid for the generation of green hydrogen – the HyGrid. The objective is to establish hydrogen technology and its use in the form of decentralised island grids as a basis for securing a reliable, CO2-neutral power supply in South Africa.
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WRAP_GH2
WRAP_GH2 identifies obstacles and framework conditions in Jordan for decentralised hydrogen technologies as well as options to increase the acceptance of green hydrogen. A feasibility study will be developed as part of the project, which specifically deals with the decentralised production of green hydrogen in combination with agrivoltaics. Agrivoltaics can reduce evaporation and the electricity generated can be used in electrolysis.
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Theme excursion: green hydrogen – sustainability aspect water

For the production of hydrogen, water is split into its components hydrogen and oxygen using electricity in an electrolysis process. In order for the hydrogen generated to be considered green, the electricity used must originate from renewable energy sources. However, not only electricity is decisive: The water used in the process must also be considered from a sustainability aspect. Many locations in countries of the south have immense potential for the generation of renewable energy, but suffer from water stress. Sustainable hydrogen production requires the corresponding management of water resources. The differentiated knowledge required for this purpose must be generated and exchanged amongst the relevant stakeholders. Local conditions are also decisive for project implementation, just as the embedding of the technologies in the respective context. By linking its fields of action, EXI creates a multifaceted platform for the consideration of resulting requirements, synergies and co-benefits for potential hydrogen production for local use.

Uses of water in decentralised energy systems with hydrogen and fuel cell technologies

Depending on the application case, technology solutions can be used in the context of decentralised energy supply with hydrogen and fuel cell technologies with a virtually closed water-energy circulation system. A NOW fact sheet examines the connections between energy, hydrogen and water and also pursues the issue of water use compared with water consumption in such systems. The publication also falls back on first experience gained from the EXI project HyTrA.

Synergies between energy provision and water treatment

The pilot project HygO in Namibia is investigating the local advantages of water treatment and drinking water provision by the operation of mini-grids with hydrogen generation, storage and reconversion. Important aspects of the water-hydrogen nexus are also to be explicitly made visible here. Potential of hydrogen production and use in wastewater treatment facilities: The feasibility study of the GJWHD project in Jordan is examining this aspect as part of its investigations and stakeholder exchange with local and German actors. The project of the AHK Brazil (Rio de Janeiro) focuses on examining the production and utilisation potential in Brazilian wastewater treatment facilities. Furthermore, various approaches for business model development are identified as part of the study, exchange between technology providers and potential users is promoted.

Resource-efficient hydrogen production in arid regions

The two projects GJWHD and WRAP_GH2 (Jordan) are examining resource-efficient handling in the context of hydrogen production in arid regions. As part of the GJWHD project, the framework conditions for local hydrogen production were examined with a subsequently conducted specific analysis in the context of wastewater treatment. Synergies between the production and the use of hydrogen as well as agrivoltaics concepts are being examined as part of the WRAP_GH2 project. The project partners also promote exchange with local stakeholders.