German Hydrogen Startup Raises $227 Million for Green Projects

German Hydrogen Startup Raises $227 Million for Green Projects

Hy2gen AG, a German startup partly owned by oil trading giant Trafigura Group, raised 200 million euros ($227 million) to build plants that will produce green hydrogen for industries and transport.

It will be the largest private spending in green hydrogen, with the funds coming from Hy24, Mirova SA and Caisse de Depot et Placement du Quebec, with Technip Energies NV as a strategic investor, Hy2gen said in a statement Thursday. The financing is a mixture of equity and convertible bonds.    

“We were looking for the best possible combination of financial and strategic investors,” said Cyril Dufau-Sansot, chief executive officer of Hy2gen, which has 880 megawatts of projects in planning and construction and a further 12 gigawatts in development. The plants “have the potential to decarbonize entire industries and transport sectors.”

The number of green hydrogen facilities is growing around the world as regulators, investors and consumers push airlines, shippers and industrial companies to reduce carbon emissions. By 2050, hydrogen produced using renewables will be cheaper than gas in at least 16 countries, including three in Europe, according to BloombergNEF.

The goal is to finance the capital expenditure of one project either in Norway or Canada and to reach a final investment decision within one to two years, Dufau-Sansot said. Both projects are at similar stages and will produce green ammonia for the maritime shipping industry. 

Hy2gen is working on plans to build six plants in Germany, Norway, France, Canada and the U.S. that would require an overall investment of about 1.5 billion euros, Dufau-Sansot told Bloomberg in June. 

The startup is the first investment made by Hy24, a joint venture between asset managers Ardian ASA and FiveT Hydrogen that aims to invest 1.5 billion euros in clean hydrogen infrastructure. The strategy is to take minority stakes in projects such as large electrolyzers producing green hydrogen, ammonia or methanol.

Nomura Greentech acted as financial adviser to Hy2gen. Societe Generale SA acted as financial adviser to Hy24 and Mirova.

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