From photovoltaic, wind power (onshore and offshore) and on to hydropower, battery storage and green hydrogen, we have offered investment solutions in this asset class since 2003. Our work actively supports the energy transition in Europe. There is tangible momentum in sustainable infrastructure as an asset class firmly set on a long-term, sustainable growth trajectory. As the investment manager of the Power-to-X (PtX) Development Fund held by Germany’s KfW Bankengruppe, one of the world’s leading development banks, we are at the forefront of efforts geared to establishing the international green hydrogen economy.
Passion for Sustainable Infrastructure
From photovoltaic, wind power (onshore and offshore) and on to hydropower, battery storage and green hydrogen, we have offered investment solutions in this asset class since 2003. Our work actively supports the energy transition in Europe. There is tangible momentum in sustainable infrastructure as an asset class firmly set on a long-term, sustainable growth trajectory. As the investment manager of the Power-to-X (PtX) Development Fund held by Germany’s KfW Bankengruppe, one of the world’s leading development banks, we are at the forefront of efforts geared to establishing the international green hydrogen economy.
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Sustainable infrastructure in figures
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sustainable Infrastructure transactions
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people could rely on the energy we produce
Investment strategy
We have offered investment solutions in the sustainable infrastructure asset class across Europe since 2023, with profiles ranging from core to value add. We work with specialists on the ground to actively manage our assets all the way through to disposal, thereby achieving sustainable returns. The sustainable infrastructure team at KGAL focuses exclusively on the development, construction and operation of renewable energy projects, managing assets that help to prevent emissions harmful to the climate. We implement both buy-and-hold and buy-build-sell strategies.
We launch ESG-compliant fund products classified in accordance with Article 9 of the EU Sustainable Finance Disclosure Regulation as part of our ESPF series. In all our investments, we pursue a holistic approach to asset management spanning the entire value chain – from project development to financing through to operation.
wind | ESPF 4 | Bäckhammar Sweden
Here we present our investment highlights
As a pioneer for this asset class, KGAL is active in large parts of Europe with investments in Sustainable Infrastructure
Blue: Countries where KGAL's sustainable infrastructure transactions are located
Asset Locations
Investment Countries
Current Sustainable Infrastructure funds
KGAL ESPF 5
KGAL’s ESPF 5 Article 9 Impact Fund (SFDR) provides the opportunity to make an active contribution to the decarbonisation of Europe by investing in the attractive energy transition growth market – diversified across technologies, sectors, countries and lifecycles.
Make a decisive contribution to the EU’s independence from fossil fuels. Investing in KGAL’s ESPF 6 Article 9 Green Hydrogen & Energy Transition Fund (SFDR) you will become part of an important growth market with a promising future.
Make an active contribution to the decarbonisation of Europe by investing in the attractive energy transition growth market – diversified across technologies, sectors, countries and lifecycles.
The solutions we are offering in the sustainable infrastructure asset class are making a quantifiable contribution to decarbonisation geared to achieving the 1.5°C target set out in the Paris Agreement. Our investment solutions are helping to bring about a fossil fuel-free future. In 2023, we prevented 612,000 tonnes of CO2 emissions and fed approx. 2.61 terawatt-hours of green electricity into power grids.
We also adhere to stringent governance standards. In September 2018, for instance, KGAL signed up to the UN Principles for Responsible Investment (UN PRI). As a signatory, KGAL is required to report specific ESG information for review by the PRI initiative. And, after the KfW Bankengruppe engaged us to manage its PtX Development Fund, we are now working to lay the foundations for the industrial ramp-up of green hydrogen.
KGAL honoured with the Scope Award in the “New Energy” category for the third time in a row
Grünwald, 21.11.2024 – The independent rating agency Scope has once again recognised KGAL as the best asset manager in the “Infrastructure Equity – New Energy” category. More than 20 years of experience with renewable energies, the expertise of a 65-strong team of experts and the unique product range are the basis for success.
Grünwald/Munich, 24.10.2024 – KGAL Investment Management has acquired three wind turbines near Perscheid, Rhineland-Palatinate. The wind farm is the first investment in an individual mandate, in which KGAL is advising the Software AG Foundation (SAGST). The wind farm, which is currently under construction, has a total capacity of 17.1 megawatts (MW) and is scheduled to go into operation in spring 2025. The seller is BayWa r.e.
PtX Development Fund by KfW and KGAL makes first contribution to Egyptian hydrogen project
Grünwald/Munich, 08/10/2024 – The PtX Development Fund1 for the promotion of hydrogen projects in developing and emerging economies has approved its first grant: Egypt Green Hydrogen (EGH) will receive €30 million for a hydrogen project in the Suez Canal Economic Zone (SCZone), the largest industrial cluster in Egypt. Prior to this, KGAL Investment Management GmbH & Co KG, the fund manager mandated by KfW, had intensively reviewed a total of 98 applications from seven countries. The contract was officially signed on 8 October at the Hamburg Sustainability Conference in the presence of Svenja Schulze, German Federal Minister for Economic Cooperation and Development (BMZ), Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation and Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources. The second round of applications is expected to start in winter 2024/25.
KGAL ESPF 6 participates in the development of one of Europe’s most important hydrogen hubs
The KGAL ESPF 6 Energy Transition Fund is investing in a green hydrogen project at Lubmin, a Baltic Sea port in Mecklenburg-Western Pomerania, with a total capacity of up to 1,050 megawatts. This project is part of Germany’s largest planned centre for the production and import of green hydrogen, with Europe-wide significance. KGAL’s investment has excellent prospects, as the location offers immense strategic advantages and the project is being driven forward by experienced specialists. KGAL has partnered with project initiator PtX Development GmbH and project planner GP JOULE, the German green energy specialist.
KGAL ESPF 5 completes acquisition of a solar park cluster in Saxony-Anhalt with a total capacity of 120 megawatts
The renewable energy fund KGAL ESPF 5 is investing in two further solar parks near Magdeburg, Calvörde West and Grauingen. The two plants complement the Calvörde Ost solar park acquired at the beginning of 2023, which will soon go into operation. The Calvörde cluster has a total capacity of 120 megawatts. KGAL has already secured attractive long-term feed-in tariffs for the majority of the capacity.
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