REG - HydrogenOne Cap Gwth - Sunfire GmbH announces signficant new funding

Hydrogenone Capital GrowthAnnouncement

05/03/2024 08:00

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RNS Number : 5376F  HydrogenOne Capital Growth PLC  05 March 2024

LEI: 213800PMTT98U879SF45

5 March 2024

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

HydrogenOne Capital Growth plc

('HydrogenOne' or the 'Company')

 

Sunfire GmbH announces significant new funding; non-material change to
investment policy

 

HydrogenOne Capital Growth plc, the first London-listed fund investing in
clean hydrogen for a positive environmental impact, is pleased to note that
portfolio company Sunfire GmbH ('Sunfire') has announced a successful equity
funding round, part of a wider funding package totalling more than EUR 500
million. This success of this round underscores both the Company's strategy of
backing the leading innovators in the hydrogen industry, and its valuation of
Sunfire.

 

The Company's Investment Adviser, HydrogenOne Capital LLP, believes this is a
significant financial milestone for Sunfire, with EUR 215 million raised in a
Series E equity financing round, further complemented by a term loan of up to
EUR 100 million provided by the European Investment Bank ('EIB'). In addition,
Sunfire has access to circa EUR 200 million from previously approved, undrawn
grant funding to support its growth. The transaction is subject to customary
regulatory approvals and is expected to close in Q2 2024. This makes Sunfire
one of the best capitalised electrolyzer manufacturers in the industry.

 

Sunfire is an industry leader in alkaline and solid oxide electrolyser
manufacture.  Sunfire is expanding its alkaline electrolysis production
capacity at Solingen and Limbach-Oberfrohna, Germany and developing advanced
research facilities in Dresden. Sunfire's pressurised alkaline and
high-temperature solid oxide electrolysis technologies have the potential to
become key enablers of the transition to renewable energy, offering a scalable
and efficient means of producing green hydrogen. Accordingly, Sunfire targets
installing several gigawatts of electrolysis equipment by 2030 in large-scale
green hydrogen projects, securing a leading position in the fast-growing
global electrolyzer market.

 

Non-material change to the Company's investment policy

 

On 18 October 2021 the Company announced that it had entered into agreements
to invest £20.2 million in Sunfire, representing 19.6% of the Company's GAV
at that time. The agreements included certain rights for the Company to make
follow-on, anti-dilution, investments in Sunfire. At 31 December 2023,
HydrogenOne's valuation of its investment in Sunfire was £27.1 million,
representing 20.4% of the Company's gross asset value ('GAV'). Sunfire's
revenues have expanded ten-fold since the Company's initial investment in
2021, and continue to anticipate a robust growth trajectory. The Company has
exercised its rights to make a follow-on investment of £0.3 million in
Sunfire as part this funding round (the 'Additional Sunfire Investment'),
which mitigates the potential impact of dilution by leaving the Company's
stake in Sunfire unchanged.

 

The Company's investment restrictions, forming part of its investment policy,
require it to invest and manage its assets in a way which is consistent with
its objective of spreading investment risk. In respect of investments in
private hydrogen assets, no single private hydrogen asset will account for
more than 20% of the Company's GAV (assessed at the time of investment).

 

In order for the Company to make the Additional Sunfire Investment, the Board
has resolved to make a non-material modification to the Company's investment
restrictions. Investments in Sunfire, measured at the time of investment,
shall not exceed 21% of the Company's GAV. The Company's investment policy,
including restrictions relating to all other investments, shall remain
unchanged. The Company's investment restrictions shall continue to require it
to invest and manage its assets in a way which is consistent with its object
of spreading risk.

 

Dr JJ Traynor, Managing Partner of HydrogenOne Capital LLP, commented:
"Sunfire was HydrogenOne's first investment, made in 2021, underscoring our
conviction in the key role of electrolysis in the energy transition. The
funding announced today puts Sunfire on a firm footing to build out its
capacity and profitability".

 

Nils Aldag, CEO of Sunfire said: "This substantial financing round is good
news for Europe's leading role in hydrogen production and for the European
clean-tech industry. I am delighted to welcome additional investment, backing
our vision, product offering, and capabilities to deliver industrial
electrolyzers at pace and scale. With this new capital, we are uniquely
positioned to further accelerate our company's growth and industrialisation
plans to meet the fast-growing demand for electrolysis technologies."

 

Nicola Beer, Vice President European Investment Bank: "To make the green
transition work for energy intensive industries, the development of a green
hydrogen business environment is crucial. Scalable, reliable and efficient
electrolyzers are a cornerstone. Therefore, we at the EIB are happy to support
Sunfire's innovative technology."

 

- Ends -

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, as it forms part of UK domestic law ("MAR"). Upon
publication of this announcement, the inside information is now considered to
be in the public domain for the purposes of MAR. The person responsible for
arranging the release of this announcement on behalf of the Company is
HydrogenOne Capital LLP.

 

Notes

 

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

 

 HydrogenOne Capital LLP - Investment Adviser  Tel: +44 (0) 20 3830 8231
 JJ Traynor

 Richard Hulf

 Barclays Bank PLC - Corporate Broker          Tel: +44 (0) 20 7623 2323

 Dion Di Miceli                                BarclaysInvestmentCompanies@barclays.com

                                             (mailto:BarclaysInvestmentCompanies@barclays.com)
 Stuart Muress

 Buchanan Communications - Financial PR         Tel: +44 (0) 20 7466 5000

 Henry Harrison-Topham                          Email: HGEN@buchanancomms.co.uk (mailto:HGEN@buchanancomms.co.uk)

 Henry Wilson

 George Beale

 

 

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
focused 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.

 

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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