On Thursday, Canada’s CDPQ, the global investment giant that manages some CAD 390 billion (around $307 billion) in pension and institutional assets, announced that it is part of an investment consortium that has committed EUR 200 million (around $227 million) to Hy2gen AG, a green hydrogen investment platform headquartered in Wiesbaden, Germany. The investment round, which according to CDPQ ranks as the largest private market green hydrogen-focused capital raise to date, was led by Hy24, the world’s largest hydrogen-focused infrastructure fund and a joint venture of private investment manager Ardian and specialist hydrogen investor FiveT Hydrogen, with participation from the aforementioned CDPQ, Mirova (an affiliate of France’s Natixis Investment Managers), and Euronext-listed energy tech firm Technip Energies.
Hy2gen AG will use the new capital to build facilities in several geographies (including, but ostensibly not limited to, Europe), for the production of green hydrogen-based fuels (also known as e-fuels) for maritime and ground transportation, aviation, and industrial applications.
“As early as 2021, we were looking for the best possible combination of financial and strategic investors to build e-fuel production facilities,” Hy2gen CEO Cyril Dufau-Sansot said in a comment on the investment. “These have the potential to decarbonize entire industries and transport sectors. We are now very pleased that all parties have sealed the largest investment in this segment.”
“The magic combination for success in hydrogen scale-up is sizable projects in strategic basins, strong stakeholder support from off-take to project financing and execution, and the leadership of expert teams for development and steering,” Hy24 CEO Pierre-Etienne Franc added. “This is what Hy2gen has successfully gathered around the table. This first investment made by our Clean H2 Fund allows Hy24 to step into its role as a catalyst for hydrogen-based projects at scale to foster the energy transition.”
Founded in 2017, Hy2gen is a pioneer in the electrolysis of green hydrogen and its derivatives. The company, whose prior investors have included commodities giant Trafigura, has quickly grown to become one of the leading players in the green hydrogen industry, with 880MW in planning and construction and a further 12GW of projects in development. Its first plants are being built in France, Norway, Canada, Germany, and the U.S.
This landmark investment is being executed through Hy24’s Clean H2 Infra Fund, with EUR 1 billion (about $1.4 billion) in capital raised), whose mandate is to unlocked strategic and large-scale projects under development to accelerate the scale-up of global hydrogen markets. In addition to JV partners Ardian and FiveTHydrogen, the fund’s other anchor industrial partners include LOTTE Chemical, Snam, Enagas, GRTgaz, and financial investors including AXA and CCR.
“Mirova is committed to financing sustainable solutions for the energy transition. We are convinced that green hydrogen has a key role to play in the decarbonization of the industry and are proud to partner with Hy2gen and support their ambition to become a key player in the deployment of this energy of the future,” said Raphaël Lance, Head of Mirova’s Energy Transition Infrastructure Funds.
For CDPQ, the new investment represents a landmark of its own.
“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 decarbonization of highly polluting industries,” Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ. “With this investment in Hy2gen, we demonstrate our determination to bring concrete and pragmatic solutions to address today’s environmental challenges.”
