London-listed listed investment fund HydrogenOne Capital Growth has bought a minority stake in Gen2 Energy, a Norwegian developer of green hydrogen production capacity, for £3.3mn ($4mn).

The investment, which is subject to approval by Gen2’s existing shareholders, forms part of a funding round through which Gen2 expects to raise at least NOK140m ($16mn).

The deal marks HydrogenOne’s first investment in green hydrogen production since its launch via a £107mn ($143mn) IPO in London in July last year.

700MW – Gen2 Energy’s project pipeline

Gen2 is developing several green hydrogen projects in Norway based on the country’s excess supply of hydroelectric power. The company says it has a total project pipeline of about 700MW that could start production in 2024-26.

Work at the company’s initial site in the north of Norway is underway and, once complete, it will have a capacity of at least 80MW, producing 11,700t/yr of green hydrogen from late 2023 or early 2024.

Gen2’s existing shareholders include commodities trading group Vitol, which took a 10pc stake as an anchor investor in a funding round last year. Other investors include London-based investor Hycap, Norway-based LNG terminal developer Hoegh LNG and Norwegian shipping company Knutsen Group.

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Author: Stuart Penson