Equinor and two partners are putting more than $15 million into a new fund that is aiming to invest in blue and green hydrogen projects in Norway and elsewhere.
Green hydrogen is hydrogen that is produced entirely from renewable sources of energy, while blue hydrogen involves natural gas with a carbon capture element.
Norwegian state-controlled oil and gas major Equinor's offshoot Equinor Ventures has linked up with Yara Growth Ventures and Nysno Climate Investments for the investment in the AP Ventures Fund II.
The fund has been set up to help establish a well-functioning market and value chain for hydrogen in Norway and globally, a joint statement on Friday said.
The statement did not disclose how much the new partners will put into the fund, however Upstream's sister Norwegian language publication DN reported that the trio will contribute €13 million ($15.7 million).
Following this commitment, AP Ventures’ total assets under management will be $344 million.
Existing investors include Anglo-American Platinum, Implats, the Mirai Creation Fund, Mitsubishi Corporation, Pavilion Capital, Plastic Omnium, the Public Investment Corporation and Sumitomo Corporation
Energy giant Equinor believe the investment in AP Ventures will help it explore and expand its knowledge of hydrogen solutions that can play a role in the energy transition’s ambition is to reach net-zero emissions by 2050.
“An important tool for success is to develop profitable value chains for carbon capture and storage and hydrogen. In order to develop such value chains, we need to work together with partners,” said Equinor Ventures vice president Gareth Burns.
Nysno Climate Investments is a Norwegian sovereign climate investor targeting companies and funds with profitable and smart solutions to climate change.
With Nkr2.4 billion ($292 million) in assets under management, Nysno invests in clean energy, digital and enabling technologies, resource efficiency, sustainable demand, and the circular economy.
Equinor Ventures is Equinor’s corporate venture capital arm that looks to invest in ambitious early-phase and growth companies.
Fertiliser producer Yara has set an ambition of clean ammonia production to enable the hydrogen economy, driving a green transition of shipping, fertiliser production and other energy intensive industries.
AP Ventures is headquartered in London and manages venture capital funds with a global mandate to invest in pioneering new technologies and businesses that aim to solve global challenges.
- Aker Solutions wins Norway e-fuels engineering deal
- OPINION: Real action needed now, or the world could retreat into target scepticism
- Acorn accord: Shell and Harbour become partners in UK blue hydrogen and CCS project
- Total links up with Siemens Energy in LNG emissions cut drive
- Could Ineos Energy be set for swift Norway return even after $615m asset deal exit?
- Aker Solutions partners up for sustainable energy projects in UK
- Offshore 'the next frontier for the energy transition': TechnipFMC bullish on market prospects
- Eni aims for full decarbonisation by 2050 despite short-term growth in oil and gas volumes