REG - HydrogenOne Cap Gwth - Update on HH2E

Hydrogenone Capital GrowthAnnouncement

18/04/2024 07:00

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RNS Number : 0417L  HydrogenOne Capital Growth PLC  18 April 2024

LEI: 213800PMTT98U879SF45

 

 

 

18 April 2024

HydrogenOne Capital Growth plc

("HydrogenOne" or the "Company")

 

Update on HH2E

 

HydrogenOne Capital Growth plc, the first London-listed fund investing in
clean hydrogen for a positive environmental impact, reports an update from the
Company's portfolio holding HH2E AG ("HH2E"), a green hydrogen project
developer in Germany.

HH2E is backed by HydrogenOne and Foresight Group ("Foresight"), comprising an
investment in HH2E itself, and separately into project-specific Special
Purpose Vehicles ("SPVs") managed by HH2E. The Company has invested alongside
Foresight in the Thierbach SPV ("Thierbach"), and Foresight has also invested
in the Lubmin SPV ("Lubmin"). In addition, HydrogenOne and Foresight together
have development rights on a further four green hydrogen project SPVs, through
their investment in HH2E.

The Company has now signed agreements, subject to customary completion,
alongside Foresight and other investors in HH2E, to streamline the HH2E
business, ahead of upcoming external funding rounds to bring green hydrogen
projects into production.

Accordingly, the investment rights in all six green hydrogen project SPVs will
be exchanged for HH2E equity, in a non-cash transaction for the Company. In
addition, the Company's previously announced development loan to Thierbach, of
which £1.9 million has been drawn, will be reduced to £0.7 million, through
a swap for equity in HH2E (together the "HH2E Transaction").  The Company's
resulting equity share of HH2E is unchanged, at around 11%, on an enlarged
asset base with a simpler corporate structure.

The HH2E Transaction also provides the Company with exposure to an additional
green hydrogen project, Lubmin, which is progressing towards its Final
Investment Decision. The project is currently expected to be for 100MW input
power, producing 7,000 tonnes per annum of REDII-compliant green hydrogen from
2026.

At 31 December 2023, the Company's investment in HH2E and Thierbach
represented 6% of the Company's NAV. The Investment Adviser expects that the
HH2E Transaction will be accretive to the Company's valuation of HH2E as
projects move into development.

Dr JJ Traynor, Managing Partner of HydrogenOne Capital LLP, the Company's
investment adviser, commented: "With these changes, HH2E has the platform to
attract material new capital and scale the business, to become one of Europe's
largest producers of green hydrogen and support the energy transition away
from traditional fossil fuels. The restructuring also offers HydrogenOne
exposure to the promising Lubmin project, which is an exciting development for
our shareholders."

Alexander Voigt, co-founder and CEO of HH2E, commented: "In anticipation of
our upcoming external investment round, we encountered an exceptionally high
number of expressions of interest from both financial and industrial
investors. The prevailing sentiment favoured a simpler corporate structure and
a larger business size, necessitating the now-completed consolidation. Our
forthcoming objective is to declare FID for our HH2E-Werk Lubmin and to
initiate the Series B investment round for HH2E AG. We extend our deepest
appreciation to Foresight Group and HydrogenOne for their steadfast support
since our Series A investment round and their continued belief in our vision."

- Ends -

 

 

Notes

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 / Eva Bezruchko

 Barclays Bank PLC - Corporate Broker           +44 20 7623 2323

 Dion Di Miceli                                 BarclaysInvestmentCompanies@barclays.com

                                              (mailto:BarclaysInvestmentCompanies@barclays.com)
 Stuart Muress

 James Atkinson

 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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