London-listed fund HydrogenOne Capital Growth (HGEN) is building momentum in the emerging clean hydrogen industry as it continues to deploy capital into the sector.
The company successfully raised £107 million (US$147 million) following its initial public offering in July last year and revealed Thursday it had already deployed 46% of available capital in the first five months following its launch.
This has seen it invest in 19 listed positions for an aggregate of 9% of the net proceeds, and three private companies accounting for a total of 37% of the net proceeds, with over 90% of the deployed capital focused in the UK and European Union.
HydrogenOne said its investments to date have spanned the entire hydrogen value chain, including critical components for green and turquoise hydrogen supply, distribution and refuelling equipment, fuel cells innovators, systems integrators and developers.
It has already earmarked additional investments and anticipates to have fully deployed the net proceeds from its 2021 capital raising by the second quarter of this year.
However, the company claims to be maturing a pipeline of over £500 million of potential private investment opportunities, including a near-term pipeline in excess of £200 million of potential transactions under non-disclosure agreements.
It noted the investment potential in the pipeline was roughly 10 times more than its remaining net proceeds from the IPO, with the company now considering options to raise further capital in the near term in order to finance some of those opportunities.
“HGEN has completed a number of transactions, building on the strong momentum in the sector. With deployment from our latest fundraise now well under way, and with a robust and exciting pipeline of potential deals we are seeing HGEN's growth potential,” said HydrogenOne chairman Simon Hogan.
“The business is considering options for raising further capital so we can continue to deploy substantial growth capital into energy transition and unlock value for shareholders in this sector."
HydrogenOne stated Thursday that strong momentum was continuing to build in the hydrogen sector, particularly following a number of declarations and commitments launched around last year’s UN COP26 climate summit in Glasgow supporting the acceleration of investment and demand.
It noted a total of 39 countries have now published hydrogen roadmaps and, as of the end of 2021, at least 500 hydrogen projects had been announced worldwide, which it said was a 100% increase on the previous year.
It also stated that full value chain spending in announced clean hydrogen could reach $700 billion by 2030 and the company claims to have identified an investable universe of more than £17 billion in private hydrogen assets, in operational companies and hydrogen projects.
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