Denmark-based Everfuel, a green hydrogen energy company, and Hy24, managing the world’s largest clean hydrogen infrastructure fund, announced on Tuesday the creation of a €200M joint venture to fund the accelerated development of electrolyser capacity across the Nordics.
With this deal, Everfuel will own 51 per cent of the joint venture while Hy24-managed Clean H2 Infra Fund will own 49 per cent.
Minister for Foreign Affairs of Denmark, Lars Løkke Rasmussen, says, “I warmly welcome this important investment and the joint venture between Everfuel and Hy24. Green hydrogen and e-fuels will play a big role in decarbonising industries such as shipping, aviation and heavy transportation.”
“So, this is not only good news for the production of green energy in Denmark, but also for our global efforts to reduce CO2 emissions.”
“The investment underlines that Danish companies are frontrunners within green technologies. It also shows that Denmark remains an attractive destination for foreign green investments thanks to competitive framework conditions, supporting both Danish and European ambitious green policies and climate goals,” adds Rasmussen.
Aim of this initiative
The venture will initially acquire the HySynergy Phase 1, 20 Megawatt green hydrogen production facility in Fredericia, Denmark. It will also gain from Everfuel’s inventory of hydrogen projects as they progress towards the final investment decision (FID).
The HySynergy Phase 1 electrolyser will help in the decarbonisation of industrial processes at the nearby Crossbridge Energy Plant when it begins full operations in the second quarter of 2023.
Additionally, HySynergy will provide a source of green hydrogen as an emission-free propellant for sustainable transportation.
HySynergy Phase 2, 300 Megawatt, Green Hydrogen Plant received IPCEI financing in the amount of €33.1M in December 2022 to help with the development of the first of three 100 Megawatt electrolysers.
The joint venture supports Hy24’s goal of accelerating the growth of the hydrogen markets in Europe, the Americas, and Asia Pacific by opening up important and large-scale initiatives that are in the planning stages.
Hy24 is also making investments through the Sustainable H2 Infra Fund, a €2B impact fund that was completed in October 2022.
The joint venture’s Danish hydrogen strategy will be supported by the hydrogen facilities it owns and operates. By 2030, the nation hopes to build 4 to 6 GW of electrolyser production capability, utilising the “exceptional” wind resources of Denmark.
Everfuel’s current project portfolio in Denmark includes more than 1.3 GW of electrolyser capacity.
Transaction Overview
HySynergy Phase 1 was purchased by the joint venture Everfuel for nearly €28M. Phase 1 will be transferred to the joint venture, and Everfuel will then pay back the remaining €10M debt from the European Investment Bank.
Additionally, Hy24 will give the joint venture a bridge credit of €15M. As HySynergy Phase 2 progresses, it is anticipated that this loan will be replaced by a bigger facility from outside debt sources.
Also, Everfuel has the right to buy Hy24’s Joint shares at a predetermined return within a given time frame.
After the joint venture has been fully established, Everfuel will have enough funding to sustain its portion of expected joint venture investments towards the end of 2023, including those made through FID.
In accordance with the terms of the joint venture incorporation, Hy24 agreed to take part in any future capital raises Everfuel may undertake to support the business and the execution of green infrastructure initiatives.
About Everfuel
Everfuel offers hydrogen supply and fueling solutions to help businesses make green hydrogen for the zero-emission industry and mobility commercially available across Europe.
To connect the complete hydrogen value chain and provide hydrogen fuel to corporate clients under long-term contracts, it owns and runs green hydrogen infrastructure, collaborates with business and car OEMs, and associates with them.
Headquartered in Herning, Denmark, and with activities in Norway, Denmark, Sweden, The Netherlands, Germany, and Belgium, Everfuel has plans to further grow across Europe. The company is listed on Euronext Growth in Oslo under EFUEL.
What does Hy24 offer?
Hy24 is a 50/50 joint partnership between FiveT Hydrogen, a clean hydrogen investment platform, and Ardian, a private investment company. It manages the Clean H2 Infra Fund.
With the launch of the “Clean H2 Infra Fund”, Air Liquide, TotalEnergies, and VINCI Concessions joined forces with Plug Power, Chart Industries, and Baker Hughes to create the largest clean hydrogen infrastructure fund in the world.
Their goal is to accelerate the growth of the hydrogen industry.
The fund’s anchor industrial partners include LOTTE Chemical, Airbus, Snam, Enagás, and GRTgaz (joined as one anchor partner), and anchor financial investors include AXA, Crédit Agricole Assurances, CCR, Allianz, CDPQ, and JBIC.
The fund, which is now operational, has also attracted investors including Border to Coast Pensions Partnership, the CMA CGM Group, ERAFP, Nuveen, Ballard, Schaeffler, and Société Générale with $2B in contributions.
Hy24 ramps up hydrogen solutions along the entire value chain, including production, conversion, storage, supply, and utilisation. Hy24 claims to assist sizable, important initiatives in their early stages as they develop into vital energy infrastructure.
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