INEOS Energy announces £25 million cornerstone backing for HydrogenOne, London’s first listed fund dedicated to clean hydrogen
- INEOS Energy has agreed to purchase 25 million shares in the forthcoming IPO of HydrogenOne Capital Growth plc, representing 10% of the target fund raise of £250 million.
- Brian Gilvary, Executive Chairman of INEOS Energy, said, “The INEOS investment in HydrogenOne will help to accelerate and diversify INEOS’ existing clean hydrogen strategy. It marks the beginning of another substantial and long-term partnership, opening new windows into the clean hydrogen world for INEOS.”
- Simon Hogan, Chairman of HydrogenOne, added “HydrogenOne is the first of a kind. We welcome INEOS’ investment in the company and we are looking forward to expanding our collaboration.”
- INEOS will have the right to appoint a non-executive director to the Board and will have co-investment rights in projects identified by the fund.
- INEOS is already Europe’s largest producer of hydrogen. Its experience in electrolysis technology and its growing portfolio of hydrogen projects, using clean hydrogen will accelerate decarbonisation of energy and drive progress towards a carbon-free future.
INEOS Energy has today agreed to make a significant investment in HydrogenOne Capital Growth Plc (“HydrogenOne”) which will be the first London listed fund dedicated to clean hydrogen for the energy transition towards net zero carbon emissions by 2050.
INEOS will purchase 25 million shares in the forthcoming IPO of HydrogenOne, representing 10% of the target fund raise of £250 million. INEOS will also have the right to appoint a non-executive director to the Board and will also have co-investment rights in projects identified by HydrogenOne.
Clean hydrogen, which can be manufactured by using electricity from renewable power, or through carbon capture and storage of produced greenhouse gases, has enormous potential to reduce the greenhouse gas emissions from industrial gases, and to be used as a fuel in hard-to-decarbonise sectors in the energy system. The EU and National Governments have clear targets towards the widespread utilisation of hydrogen across Europe by 2030.
HydrogenOne will provide access to clean hydrogen through investment in a diversified portfolio of hydrogen and complementary hydrogen focused assets to deliver capital growth with a strong sustainability focus. HydrogenOne is expected to qualify for the London Stock Exchange's Green Economy Mark at admission, which recognises companies that derive 50% or more of their total annual revenues from products and services that contribute to the global green economy. HydrogenOne will predominantly invest in private hydrogen assets, and also include hydrogen focused listed assets from global markets.
INEOS is uniquely placed to support these new opportunities, driven by emerging demand for affordable zero-carbon energy sources. It is currently Europe’s largest producer of hydrogen, making around 300,000 tonnes of hydrogen a year mainly as a co-product from its chemical manufacturing operations. It is also Europe’s largest existing operator of electrolysis, the critical technology to produce hydrogen for power generation, transportation, and industrial use.
Brian Gilvary, Executive Chairman of INEOS Energy, said, “The INEOS investment in HydrogenOne will help to accelerate and diversify INEOS’ existing clean hydrogen strategy. It marks the beginning of another substantial and long-term partnership, opening new windows into the clean hydrogen world for INEOS. It presents an important opportunity for our businesses as the market for clean hydrogen unfolds.”
INEOS is also involved in several projects to develop demand for hydrogen, replacing existing carbon-based sources of energy, feedstocks and fuel. It expects to develop further partnerships with leading organisations involved in the development of new applications.
Brian Gilvary said, “Our experience in storage and handling of hydrogen combined with our established know-how in electrolysis technology, puts us in a unique position to drive progress towards a carbon-free future based on hydrogen. This deal represents a major step in reshaping our energy business opening up future growth prospects for our business.”
Simon Hogan, Chairman of HydrogenOne, added “HydrogenOne is the first of a kind. We welcome INEOS’ investment in the company and we are looking forward to expanding our collaboration.”
INEOS is also working closely with European Governments to ensure the necessary infrastructure is put in place to facilitate hydrogen’s major role in the new Green Economy.
Notes to editors:
- INEOS is the world’s third largest chemical company, with turnover of $61bn and 26,000 people. Clean hydrogen growth is embedded in the INEOS strategy for Net Zero 2050.
- INEOS announced the formation of its new INEOS Energy venture on December 16th 2020.
- The new business incorporates all existing INEOS Oil & Gas assets with the extensive development activities that the company has in low carbon technologies for the coming energy transition.
- Brian Gilvary is Executive Chairman of the new group bringing a wealth of experience to the role after a 34-year career in BP.
- HydrogenOne was established by Dr JJ Traynor and Richard Hulf in 2020. HydrogenOne Capital Growth Plc, the new fund being launched in July has been created to invest into global hydrogen projects and hydrogen companies that provide the equipment and components that form part of the hydrogen value chain, including fuel cell and electrolyser manufacturers. The gross target fund raise is £250m. The fund will be listed as an investment trust on the London Stock Exchange in July under the ticker HGEN.
INEOS activity in Hydrogen
- INEOS is Europe’s largest producer of hydrogen, at c. 400,000 tonnes per year
- Through its subsidiary INOVYN, INEOS is Europe’s largest existing operator of electrolysis, the critical technology which uses renewable energy to produce hydrogen for power generation, transportation and industrial use. Its experience in storage and handling of hydrogen combined with its established know-how in electrolysis technology, puts INEOS in a unique position to drive progress towards a carbon-free future based on hydrogen.
- In November 2020 INEOS launched a new business to develop and build Clean Hydrogen capacity across Europe, in support of the drive towards a zero-carbon future.
- INEOS is also involved in The HyNet North West hydrogen and carbon capture and storage (CCS) project is being developed by a world-class consortium in the UK. From 2025, HyNet North West will begin to convert natural gas into low carbon hydrogen at Stanlow Refinery, with carbon dioxide captured and stored offshore in the Liverpool Bay gas fields. A new pipeline network will transport the clean hydrogen to power industry, fuel buses, trains and heavy goods vehicles, to generate electricity, and to heat homes across North West England and North Wales. HyNet North West is expected to reduce regional carbon dioxide emissions by up to 10 million tonnes every year by 2030. By then, HyNet North West alone will already be delivering 80% of the Government’s new UK-wide target of 5GW of low carbon hydrogen for power, transport, industry and homes.
- On the 16th March INEOS announced its plans to build a 20MW electrolyser to produce clean hydrogen through the electrolysis of water, powered by zero-carbon electricity at its Rafnes site in Norway. This project will lead to a minimum reduction of an estimated 22,000 tonnes of CO2 per year by reducing the carbon footprint of INEOS’s operations in Norway and serving as a hub to provide hydrogen to the Norwegian transport sector.
Carbon Capture and storage
- INEOS Energy is also involved in a promising Carbon Capture and Storage project in Denmark called Greensands. The project is making a significant contribution to our understanding and growth of carbon storage technology. The primary objective of the Greensands project is to safely and permanently store potentially up to 8m tonnes of CO2 per annum in the INEOS operated Siri area. The storage potential, if achieved, will support Denmark’s wider CO2 emission reduction targets for 2030 and beyond.