Jlen Environmental: Acquisition
26/01/2023 07:00
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RNS Number : 8905N JLEN Environmental Assets Group Ltd 26 January 2023
26 January 2023
JLEN ENVIRONMENTAL ASSETS GROUP LIMITED
("JLEN" or the "Company")
Acquisition of equity stake in green hydrogen project in Germany
JLEN, the listed environmental infrastructure fund, is pleased to announce its
first investment into the green hydrogen sector with the acquisition of a 33%
equity stake in Foresight Hydrogen Holdco GmbH ("FHHG").
FHHG holds a 75% stake in HH2E Werk Thierbach GmbH, a Special Purpose Vehicle
which owns the development rights to the Thierbach green hydrogen project
("Thierbach"), a large green hydrogen production plant near Borna in Germany,
capable of producing around 6,000 tonnes (over 200,000MWh) of green hydrogen
per year during the first 100MW phase. Green hydrogen will be produced through
electrolysis powered by renewable electricity. The project will also integrate
battery storage.
Thierbach is currently under development by HH2E AG ("HH2E"), a developer of
hydrogen projects in Germany.
FHHG also owns 7.6% of HH2E and holds the right to majority fund future
projects developed by HH2E.
Thierbach will serve green hydrogen customers and off-takers, including
leading players in the mobility sector, large-scale energy and industrial
consumers such as the chemical industry and commercial air and road transport
operators. Further expansion is planned in the future to increase the capacity
of the plant to over 1GW with an annual production of over 60,000 tonnes of
green hydrogen.
The investment has been made alongside Foresight Energy Infrastructure
Partners ("FEIP") and Foresight ITS, with both JLEN and FEIP acquiring their
respective 33% interests in FHHG from Foresight ITS. The transaction will see
JLEN invest up to €5.7m in FHHG alongside FEIP and Foresight ITS to bring
Thierbach to a construction-ready stage. This acquisition represents JLEN's
first development-stage hydrogen investment and comes with rights secured to
fund the development and build-out of Thierbach and a pipeline of further
green hydrogen projects alongside HH2E.
Ed Warner, Chair of JLEN, said: "We are delighted to be making our first
investment into green hydrogen. The efforts of the German government and
German industry to make Germany one of the leading markets in the emerging
hydrogen economy are clear and we believe that this transaction presents JLEN
with an excellent opportunity to invest on an ongoing basis as the market
matures. We are excited to be partnering with the HH2E team, who have
demonstrated their deep understanding of the hydrogen sector and their ability
to develop attractive opportunities."
Chris Holmes, Co-Lead Investment Manager of JLEN commented: "The hydrogen
sector is growing at pace and presents significant opportunities for JLEN.
This investment in HH2E, alongside its investment in a suite of green hydrogen
projects in the North West of England, underlines the commitment and skill set
of the Investment Manager to this exciting sector."
Andreas Schierenbeck, co-founder and board member of HH2E, said: "Domestic
green hydrogen production is crucial to secure a key role for Germany in the
future global green energy sector, a sector that is receiving major support
from governments in all the world's major economies. German industries will
more easily be able to remain competitive if they are not totally dependent on
energy imports.
"The technology mix developed by HH2E harnesses the volatility of renewable
energy production by combining an alkaline electrolyser with a high-capacity
battery, which enables constant production of cost-competitive green hydrogen
without a permanent supply of power."
This announcement contains information that is inside information for the
purposes of the Market Abuse Regulation (EU) No. 596/2014.
For further information, please contact:
Foresight Group
+44 (0)20 3667 8100
Chris Tanner
Chris Holmes
Edward Mountney
Winterflood Investment Trusts
+44 (0)20 3100 0000
Neil Langford
Chris Mills
SEC Newgate (For media enquiries)
+44 (0)20 3757 6882
Elisabeth Cowell
jlen@secnewgate.co.uk
Sanne Fund Services (Guernsey) Limited
+44 (0)14 8175 5530
Matt Falla
Gemma Berry
About JLEN
JLEN's investment policy is to invest in a diversified portfolio of
Environmental Infrastructure. Environmental Infrastructure is defined by the
Company as infrastructure assets, projects and asset-backed businesses that
utilise natural or waste resources or support more environmentally friendly
approaches to economic activity, support the transition to a low carbon
economy or which mitigate the effects of climate change. Such investments will
typically feature one or more of the following characteristics:
- long-term, predictable cash flows, which may be wholly or
partially inflation-linked cash flows;
- long-term contracts or stable and well-proven regulatory and legal
frameworks; or
- well-established technologies, and demonstrable operational
performance.
JLEN's aim is to provide investors with a sustainable, progressive dividend
per share, paid quarterly and to preserve the capital value of the portfolio
over the long term on a real basis. The target dividend for the year to 31
March 2023 is 7.14 pence per share(1). The dividend is payable quarterly.
JLEN is an Article 9 fund under the EU Sustainable Finance Disclosure
Regulation and has a transparent and award winning approach to ESG.
Further details of the Company can be found on its website www.jlen.com
(http://www.jlen.com/)
About HH2E
HH2E is a new green energy company in Germany founded to bring about immediate
change. Its technology mix can convert a variable input of solar or wind
energy into a constant flow of competitively priced green hydrogen, heat and
carbon-free electricity to power local industries and communities. It recently
agreed a financing deal with two institutional investors to develop a further
5 sites in Germany. Learn more about the company, technology and projects at
www.hh2e.com (http://www.hh2e.com)
LEI: 213800JWJN54TFBMBI68
(1) These are targets only and not profit forecasts. There can be no
assurance that these targets will be met or that the Company will make any
distributions at all.
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