Specialist hydrogen sector investment fund HydrogenOne Capital Growth says the companies in its portfolio face continued headwinds from supply chain issues and high energy prices but are maintaining ‘stable’ performance.

Aggregate capital investments so far by London-listed HydrogenOne, which is backed by UK chemicals company Ineos, total £103.2mn ($122.5mn), it says in a third quarter trading update.

“The company’s invested private businesses continued to make steady progress in the quarter as we deployed further capital within the over £500mn pipeline of high-quality private equity opportunities we have identified,” says Simon Hogan, chairman of HydrogenOne.

£103.2mn – Aggregate capital investments by HydrogenOne

HydrogenOne has invested in a range of businesses across the supply chain, including German electrolyser producer Sunfire, German green hydrogen project developer HH2E and Norwegian developer Gen2 Energy.

The fund welcomed action during third quarter by policy makers around the world to support the energy transition, including the Inflation Reduction Act in the US. The act provides tax credits for hydrogen projects of up to $3/kg.

“The proposed tax credit essentially sets the price for green hydrogen and thus removes a key hurdle for investment,” says HydrogenOne.

During the third quarter, the company became classified as an Article 9 Fund under the EU Sustainable Finance Disclosure Regulation and Taxonomy Regulation, a recognition of its commitment to sustainable investments and to reporting greenhouse gas emissions and avoided greenhouse gas emissions on an annual basis.

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Author: Stuart Penson