Making Green Hydrogen Bankable: Inside MED-GEM’s Finance Training
Making Green Hydrogen Bankable: Inside MED-GEM’s High-Level Finance Training in Abu Dhabi
How do you make a green hydrogen project bankable? What convinces investors, banks, and development finance institutions (DFIs) to support a renewable energy venture?
These were the kinds of questions explored during MED-GEM Network’s Finance Training on Green Hydrogen and Renewable Energy Projects, held in Abu Dhabi on 14–15 January 2026.
Gathering over 40 participants on site and around 20 online, the training brought together a powerful mix of national focal points, energy regulators, industry leaders, project developers, and representatives of local banks from across the Southern Mediterranean, from Morocco and Tunisia to Jordan, Lebanon, Egypt, and Palestine.
Led by Christoph Michel, senior finance expert at the International PtX Hub (GIZ), the training provided practical tools to help regional actors understand how financiers assess projects and what makes them investment-ready.
From Concepts to Practice
Participants dived into topics such as:
- the fundamentals of project finance and risk allocation,
- the role of development finance institutions (DFIs) and blended finance models,
- quantitative evaluation tools including the Levelized Cost of Hydrogen (LCOH),
- and the criteria that define bankability, from technical feasibility to long-term off-take agreements.
Christoph Michel reminded the group that “the cost of capital is a powerful lever, a small reduction can dramatically improve the competitiveness of hydrogen.”
He also stressed that understanding risk; political, technological, market, and infrastructure is key to structuring sound, resilient projects.
The Takeaways: Finance Made Simple
Participants left with several “finance cookies” powerful insights that make complex concepts easier to digest. One key message: risk perception shapes the cost of money. If investors believe a project or a country is risky, the interest rate they demand will rise and that alone can double the cost of producing hydrogen. A 6% difference in the cost of capital can translate into a 50% difference in hydrogen price, making financing conditions just as important as technology choices.
Another takeaway was the importance of off-take agreements, the contracts defining who will buy your hydrogen and at what price. A signed MoU may sound promising, but it’s not enough to convince a bank. Financiers look for binding, long-term commitments that secure predictable cash flows. As one participant put it, “hydrogen is not just about molecules: it’s about contracts and trust.”
Learning Beyond the Classroom
The training, organised by the EU-funded MED-GEM Network, concluded with a discussion on certification, country credit ratings, and market development for hydrogen and ammonia.
Building Capacity for the Mediterranean’s Energy Future
By strengthening financial literacy and project structuring skills, MED-GEM Network continues to bridge the gap between technical ambition and financial viability.
This training is part of the Network’s broader Capacity-Building Track: turning insights into action and helping partners across the region move one step closer to investment-ready green hydrogen projects.