Investment company Copenhagen Infrastructure Partners (CIP) has acquired a 70% stake in the first phase of a 1-GW hydrogen production project in Lubmin, Germany, from Luxembourg-based green hydrogen plants developer and operator H2APEX Group SCA.

The planned facility will have a capacity of 100 MW in the first phase, which is expected to be expanded to over 1 GW in the long term. In the first stage, the plant is to produce up to 10,000 tonnes of hydrogen per year, with the offtake already secured via a preliminary agreement.

The project is to receive EUR 167 million (USD 192.8m) in funding from the EU under the Important Projects of Common European Interest (IPCEI) programme.

The collaboration with CIP will secure pre-financing for the plant until the IPCEI funding is available. The parties also aim to raise additional resources, H2APEX said.

According to the statement published on Tuesday, CIP will invest EUR 15 million in the project phase until the final investment decision is made. Overall, the parties aim to jointly finance the total project volume of several hundred million euros by the time of commissioning.