HydrogenOne invests in German green hydrogen developer HH2E
HydrogenOne is investing alongside funds managed by Foresight Group LLP as part of a funding round expected to total at least £10 million.
HydrogenOne Capital Growth plc has signed definitive agreements for an investment of £5 million in HH2E AG.
HydrogenOne and Foresight have also signed a framework agreement giving the right to co-invest in HH2E’s projects directly. They will provide a substantial part of the development and construction capital covering five large projects. These projects are expected to be at industrial locations across Germany and will cost in excess of €500 million to fully develop.
HH2E is a specialist in developing projects to decarbonise industry using green hydrogen, with associated energy storage and hydrogen power generation facilities with the intention of providing 24/7 clean energy for customers.
With this purchase of a minority equity stake, HydrogenOne and Foresight each have the right to a board seat at HH2E and 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 HH2E intends to develop greenfield projects over time.
The first project HH2E is expected to launch likely to be at an industrial site in Germany, with plans for a new facility starting 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. HH2E are identifying substantial clean hydrogen projects in Germany, which offer the potential for significant investment there for our shareholders.”
Mark Page, HH2E co-founder and CFO, commented, “We’re delighted to have two substantial institutional investors in the green energy space backing our growth plans. This financing agreement enables a massive acceleration of our development plans and represents a substantial portion of the capital we expect to deploy on sites in the next 5-6 years.”
Matt Hammond, Partner at Foresight Group, commented, “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.”
