Hy2gen, a Germany-based green hydrogen project developer with a focus on clean fuels for the transport sector, has secured €200mn ($227mn) from a group of four financial and strategic investors in what it says is the sector’s largest private capital fundraise to date.

The investment is led by Hy24, a major pure-play clean hydrogen infrastructure fund managed jointly by French fund manager Ardian and specialist clean hydrogen investment manager FiveT. The other investors are Mirova, an affiliate of France-based Natixis Investment Managers, Canada-based pension fund manager CDPQ, and French engineering and technology company Technip Energies.

Hy2gen, the shareholders of which include Singapore-based commodities trading house Trafigura, says it will use the capital for the construction of facilities in several regions, including Europe, to produce green hydrogen-based fuels for maritime and ground transport, aviation, and industrial applications. The company says it has 880MW of green hydrogen production capacity in planning and construction, and a further 12GW of projects in development.

“As early as 2021, we were looking for the best possible combination of financial and strategic investors to build e-fuel production facilities. These have the potential to decarbonise entire industries and transport sectors. We are now very pleased that all parties have sealed the largest investment in this segment,” says Cyril Dufau-Sansot, CEO of Hy2gen.

“We were looking for the best possible combination of financial and strategic investors to build e-fuel production facilities” Dufau-Sansot, Hy2gen

The investment by Hy24 is the first commitment from its €1bn Clean H2 fund. Hy24, which is backed by several industrial and energy companies including French major TotalEnergies and US services company Baker Hughes, is strongly focused on investments in transport applications for green hydrogen and its derivatives.

“The magic combination for success in hydrogen scale-up is sizeable projects in strategic basins, strong stakeholder support from offtake to project financing and execution, and the leadership of expert teams for development and steering. This is what Hy2gen has successfully gathered around the table,” says Hy24 CEO Pierre-Etienne Franc.

CDPQ’s investment in Hy2gen is its first in the green hydrogen sector. “CDPQ is delighted to take part in our first green hydrogen transaction alongside trailblazers of this promising vector of energy, one which has the potential to accelerate the decarbonisation of highly polluting industries,” says Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ.

Technip Energies is the strategic investor in the deal. “We look forward to contributing our engineering capabilities and our proven project delivery expertise to the concretisation and acceleration of Hy2gen projects,” says Arnaud Pieton, the company’s CEO.

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Author: Stuart Penson