Largest Clean Hydrogen Infrastructure Fund launches with €1.5B target
The fund is likely to unlock large scale projects under development and accelerate the scaling up of the hydrogen market.
Air Liquide, TotalEnergies and Vinci have partnered with other large international companies to sponsor the creation of the world’s largest fund exclusively dedicated to clean hydrogen infrastructure solutions.
The fund will be managed by Hy24, a brand new 50/50 joint venture between Ardian (a private investment house) and FiveT Hydrogen (a clean hydrogen enabling investment platform). This will also allow the fund to add Plug Power as an anchor partner and Chart Industries and Baker Hughes to join together.
The fund targets to reach € 1.5 billion and have already secured initial commitments of €800 million. Each anchor partner has pledged to invest €100 million. The fund should contribute to the development of hydrogen projects with a total value of about €15 billion.
The Clean Hydrogen Infrastructure Fund aims to accelerate the growth of the clean hydrogen ecosystem by investing in large strategic projects across the renewable and low carbon hydrogen value chain in the Americas, Asia and Europe.
Clean Hydrogen Infrastructure Fund will invest as a partner, alongside other key project developers and industry players, in large upstream and downstream clean hydrogen projects.
Lotte Chemical has also confirmed its intention to participate as an anchor investor, the first company from Asia to join the fund. The fund expects to attract further investments from large financial players, with AXA as an anchor investor. Groupe ADP, Ballard, EDF, and Schaeffler also intended to join the initiative as non-anchor partners.
Subject to Hy24’s French Market Authority (AMF) accreditation as an Alternative Investment Fund Manager (AIFM), the platform will be operational, with the first closing by the end of 2021.
Chairman and CEO of Air Liquide, Benoît Potier, said, “Our objective is to contribute to the development of the entire value chain from low-carbon hydrogen production to end-uses, investing in the necessary infrastructure with storage and distribution projects.”
Patrick Pouyanné, Chairman and CEO of TotalEnergies, added, “We are convinced that a collective effort is needed to kick-start the hydrogen sector and take it to scale.”
Xavier Huillard, Chairman and CEO of Vinci, commented, “By launching this investment fund today, hand in hand with other major industrial leaders, we keep moving forward to make green hydrogen a strong lever in achieving our objectives.”
