HH2E, a German firm that specialises in developing initiatives to decarbonize industry using green hydrogen, will be invested in by HydrogenOne Capital Growth and funds administered by Foresight Group.
HydrogenOne will invest £5 million (€6 million) alongside Foresight as part of a fundraising deal worth at least £10 million.
The two have also inked a framework agreement that allows them to directly co-invest in HH2E’s projects.
They will fund a significant portion of the development and construction costs for five major projects.
The projects are scheduled to be located in industrial areas across Germany and will cost more than €500 million to complete.
HydrogenOne and Foresight each have the right to a board seat at HH2E after purchasing a minority ownership share.
The first project HH2E expects to begin will most likely be at a German industrial site, where a new facility is expected to open in 2025, providing on-site industrial customers.
Simon Hogan, chair of HydrogenOne, stated “HH2E is HydrogenOne’s second investment into a clean hydrogen developer company. HH2E are identifying substantial clean hydrogen projects in Germany, which offer the potential for significant investment there for our shareholders.”
Mark Page, co-founder and chief financial officer of HH2E, stated “We’re delighted to have two substantial institutional investors in the green energy space backing our growth plans.”
“This financing agreement enables a massive acceleration of our development plans and represents a substantial portion of the capital we expect to deploy on sites in the next five-six years.”
Matt Hammond, a partner at Foresight Group, said “Germany represents an attractive market, given the commitment by its industrial base to decarbonise with green energy, and especially given the strong political support to build a green hydrogen economy.”
“HH2E is well positioned to take a leading role in this market and we are excited to be supporting the company in delivering on this ambition.”