BNP Paribas SA and Canadian Imperial Bank of Commerce have committed to financing one of Germany's major hydrogen projects led by startup HH2E AG. The project involves the construction of a 100-megawatt green hydrogen production plant in the Baltic port of Lubmin and is nearing a final investment decision. The banks' involvement signifies confidence in the project's financial potential. HH2E AG has engaged BNP Paribas as a debt adviser to secure financing through a debt syndicate and is concurrently raising equity through CIBC. The firm is aiming for both processes to be finalized by the fourth quarter of the year, seeking loans exceeding €200 million. The project's financial feasibility has been bolstered by the German government's substantial investments in the hydrogen market, aiming to achieve net zero emissions by 2045. Despite the potential for green hydrogen to support Europe's climate targets and transition industries away from fossil fuels, uncertainties persist regarding pricing, transportation, and investor willingness. This reflects the early stage of the hydrogen market, with only a small percentage of planned capacity scheduled for completion by 2030 having secured investment. HH2E is also in discussions with larger investors to expand its project to one gigawatt by the end of the decade, with Equinor ASA from Norway already in advanced talks. Current investors in the startup include U.K. private equity firm Foresight Group Holdings Ltd. and HydrogenOne Capital Growth Plc.