HH2E in talks to raise up to $317 mln in debt to fund growth - sources (updated)

thyssenkrupp nucera AG & Co KgaA

19/10/2023 15:43

(Adds details in paragraph 4, add CEO in paragraph 6, adds
background in paragraphs 8-9)
    By Christoph Steitz
       FRANKFURT, Oct 19 (Reuters) - Hydrogen project developer
HH2E is in talks to raise up to 300 million euros ($317 million)
in debt to help fund its two planned projects in Germany, two
people familiar with the matter said.
    The company, in which UK-listed funds Foresight Group
 FSGF.L  and HydrogenOne Capital Growth  HGEN.L  own stakes, is
working with BNP Paribas  BNPP.PA  as debt adviser, the people
said.
    HH2E is currently working on getting two hydrogen projects
off the ground in Germany, both located in the eastern part of
the country, which could both be ramped up to a combined 2
gigawatts in capacity by 2030.
    The company, co-founded by former Uniper  UN01.DE  CEO
Andreas Schierenbeck, wants to have 4 gigawatts of capacity in
Germany by 2030 and already requires up to 300 million euros in
funds for its initial expansion phase.
    HH2E confirmed that it has engaged with BNP Paribas as a
debt adviser.
    "Appetite for green hydrogen as a new asset class is strong
and banks tell us they have been waiting for projects with a
strong commercial case," HH2E CFO Mark Page said in an emailed
statement.
    BNP Paribas had no immediate comment.
    Germany is ramping up its hydrogen capacity, also benefiting
from companies such as Siemens Energy  ENR1n.E  and Thyssenkrupp
Nucera  NCH2.DE , hoping to emerge as a leader in the global
market for the technology.
    HH2E may consider a stock market listing if required to fund
its growth plans in the future, one of its co-founders told
Reuters in August, adding that for now the company's focus
remained on ramping up its operational business.
    
($1 = 0.9456 euros)

 (Reporting by Christoph Steitz
Editing by Miranda Murray and David Evans)
 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))