HydrogenOne Capital Growth invests €6mn in HH2E

German company HH2E is developing projects to decarbonise industry using green hydrogen, with associated energy storage and hydrogen power generation

HydrogenOne Capital Growth is investing €6mn (£5mn) in German green hydrogen developer HH2E.

HydrogenOne is investing alongside funds managed by Foresight Group, as part of a funding round expected to total at least £10mn (€12mn), for development and construction capital covering five large projects at industrial locations across Germany, which will cost more than €500mn to develop.

HH2E is a specialist in developing projects to decarbonise industry, using green hydrogen, with associated energy storage and hydrogen power generation

It marks the latest in a series of investments from HydrogenOne in clean energy and energy storage. Last week it invested £20mn in Elcogen, a fuel cell and electrolyser company.

With this purchase of a minority equity stake, HydrogenOne and Foresight each have the right to a board seat at HH2E, in addition to the co-investment rights in HH2E’s projects noted above.

HH2E has already identified a multi-billion and multi-gigawatt investment potential over several projects in Germany. Over the next few years, the emphasis will be on decarbonising existing industrial sites, but over time, HH2E intends to develop greenfield projects.

The first project HH2E is expecting to launch is likely to be at an industrial site in Germany, where there are plans for a new facility starting up in 2025, supplying on-site industrial customers.

Simon Hogan, Chairman of HydrogenOne said HH2E is HydrogenOne’s second investment into a clean hydrogen developer company, after buying a £3.3mn stake in Norwegian green hydrogen developer Gen2 Energy in March (click here).

"HH2E are identifying substantial clean hydrogen projects in Germany, which offer the potential for significant investment there for our shareholders," he said.

Mark Page, HH2E co-founder and CFO, said the financing agreement enables "a massive acceleration of our development plans" and represents a substantial portion of the capital it expects to deploy on sites in the next five to six years.

Matt Hammond, Partner at Foresight Group, said Germany represents an attractive market, given the commitment by its industrial base to decarbonise with green energy, and especially given the strong political support to build a green hydrogen economy.

"HH2E is well positioned to take a leading role in this market and we are excited to be supporting the company in delivering on this ambition," he said.

The Green Hydrogen Organisation is holding the first Green Hydrogen Global Assembly and Exhibition in Barcelona this week (May 17-18). 

Industry speakers include Plug Power CEO Andy Marsh, Enagás CEO Arturo Gonzalo Aizpiri, thyssenkrup CEO Martina Merz, Acciona Chair and CEO José Manuel Entrecanales, H2 Green Steel CEO Henrik Henriksson, Korea Zinc CEO Yun Choi, ACWA Power CEO Paddy Padmanathan, Fortescue Future Industries Founding Chair Dr. Andrew Forrest, and video addresses from Enel CEO Francesco Starace and Envision Group CEO Lei Zhang.

Last week green hydrogen start-up PlusZero launched Step Change, a project with TTP to develop a highly efficient electrolyser, with the aim of producing "limitless" green hydrogen.  

PlusZero creates portable, zero-carbon generators that are powered by green hydrogen produced from its own electrolyser asset in Scotland’s Western Isles, utilising surplus onshore renewable electricity generated there. PlusZero is supported by Logan Energy.

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