REG - HydrogenOne Cap Gwth - New UK green aircraft business formed

Hydrogenone Capital GrowthAnnouncement

21/04/2023 07:00

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RNS Number : 9715W  HydrogenOne Capital Growth PLC  21 April 2023

HydrogenOne Capital Growth plc ("HydrogenOne" or the "Company")

LEI: 213800PMTT98U879SF45

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

21 April 2023

New UK green aircraft business formed to accelerate transition to
zero-emissions flight

·    Cranfield Aerospace Solutions and Britten-Norman to merge

·    Creation of a UK based global leader in green flight - building the
world's first fully integrated, zero-emissions aircraft

·    Up to £10m new investment from existing shareholders

 

On 24 March 2022 HydrogenOne, the first London-listed fund investing in clean
hydrogen for a positive environmental impact, announced a £7 million
investment in Cranfield Aerospace Solutions Ltd ("CAeS").

Today HydrogenOne and its co-investors are pleased to announce that, in an
industry first, Britten-Norman, manufacturers of the iconic Islander aircraft,
and CAeS, pioneers in hydrogen-electric fuel cell propulsion technology, have
signed a Heads of Terms agreement, signaling their intention to merge and to
create the world's first fully integrated, zero-emissions sub regional
aircraft for entry into service in 2026.

The merger is due to complete in mid-2023, subject to due diligence. In a
funding round led by HydrogenOne, a consortium of CAeS investors comprising
HydrogenOne, Safran Corporate Ventures (the corporate venture arm of Safran, a
leading aerospace company),  and the UAE-based venture capital firm Strategic
Development Fund will invest up to £10 million in the new company, including
up to £5 million investment from HydrogenOne. Britten-Norman's existing
owners, including lead investor Alawi Zawawi, will also join the new business.
The investment will anchor further funding that is currently being raised to
support the growth of the merged entity.

The new entity is responding to the growing demand from airlines and operators
for an Original Equipment Manufacturer ("OEM") backed aircraft that will
enable their move to zero-emissions operations. By combining CAeS's pioneering
development of a hydrogen-electric fuel cell propulsion system with the
existing and proven Britten-Norman aircraft technology, a new route to market
has been created, with certification for a passenger-carrying service planned
for 2026.

The two companies have been collaborating on Project Fresson for over 2 years,
a project set up to develop the technologies required to enable the hydrogen
propulsion system for the Britten-Norman Islander. The project has been backed
by the UK Government, via the UK Aerospace Technology Institute, and has
secured over £14 million in private funding from global investors.

Simon Hogan, Chairman, HydrogenOne: "We are very proud to have led this
funding round that will create a new leader in green aircraft manufacturing in
the UK. Our commitment to investing in clean hydrogen for a positive
environmental impact is central to this investment that will contribute
towards moving global aviation towards zero-emissions operations."

 

 

About HydrogenOne:

HydrogenOne is the first London-listed hydrogen fund investing in clean
hydrogen for a positive environmental impact. The Company was launched in 2021
with an investment objective to deliver an attractive level of capital growth
by investing in a diversified portfolio of hydrogen and complementary hydrogen
focussed assets. INEOS Energy is a strategic investor in HydrogenOne. The
Company is listed on the London Stock Exchange's main market (ticker code:
HGEN). The Company is an Article 9 climate impact fund with an ESG policy
integrated in investment decisions and asset monitoring.

The Company's Investment Adviser, HydrogenOne Capital LLP (FRN: 954060), is
an appointed representative of Thornbridge Investment Management LLP (FRN:
713859) which is authorised and regulated by the Financial Conduct Authority.

For further information, please visit www.hydrogenonecapitalgrowthplc.com
(http://www.hydrogenonecapitalgrowthplc.com) or contact:

 

 HydrogenOne Capital LLP - Investment Adviser  +44 20 3830 8231
 JJ Traynor/Richard Hulf

 Barclays Bank PLC - Corporate Broker          +44 20 7623 2323

 Dion Di Miceli                                BarclaysInvestmentCompanies@barclays.com

 Stuart Muress

 FTI Consulting - Media Enquiries

 Matthew O'Keeffe                              +44 20 3727 1725

 Cally Billimore                               hygen@fticonsulting.com

 

IMPORTANT NOTICE

This announcement contains (or may contain) certain forward-looking statements
with respect to certain of the Company's plans and/or the plans of one or more
of its investee companies and their respective current goals and expectations
relating to their respective future financial condition and performance and
which involve a number of risks and uncertainties. The Company cautions
readers that no forward- looking statement is a guarantee of future
performance and that actual results could differ materially from those
contained in the forward-looking statements.

 

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