Green hydrogen investment platform, Hy2gen AG, announced today that it has raised €200 million in an investment round aimed at funding the construction of several facilities to produce green hydrogen-based fuels, or e-fuels, for maritime and ground transport, aviation, and industrial applications. The investment was led by clean hydrogen infrastructure platform Hy24, along with investors Mirova and CDPQ and strategic investor energy transition focused engineering and technology company Technip Energies.

The financing marks the largest-ever private investment in the rapidly emerging green hydrogen space.

Cyril Dufau-Sansot, CEO of Hy2gen said:

“As early as 2021, we were looking for the best possible combination of financial and strategic investors to build e-fuel production facilities. These have the potential to decarbonise entire industries and transport sectors. We are now very pleased that all parties have sealed the largest investment in this segment.”

Hydrogen is viewed as one of the key building blocks of the transition to a cleaner energy future, particularly for sectors with difficult to abate emissions, in which renewable energy solutions such as wind or solar are less practical.

Despite being the most abundant element in the universe, however, there are no pure hydrogen deposits on Earth and it must be extracted from other materials. Around 90 million metric tons of hydrogen are produced annually, primarily extracted from natural gas through steam methane reforming. The extraction process often creates pollutants and GHG emissions. Significant investments are required to develop clean extraction processes, such as green hydrogen, which uses a renewable energy-powered electrolysis process to extract hydrogen from water.

Pierre-Etienne Franc, CEO of Hy24 said:

“The magic combination for success in Hydrogen scale up is sizable projects in strategic basins, strong stakeholder support from off-take to project financing and execution, and the leadership of expert teams for development and steering. This is what Hy2gen has successfully gathered around the table. This first investment made by our Clean H2 Fund allows Hy24 to step into its role as a catalyst for hydrogen-based projects at scale to foster the energy transition.”

Founded in 2017, Germany-based Hy2gen develops, finances, builds, and operates plants for the production of green hydrogen and hydrogen-based e-fuels worldwide. Its products are used to create climate-neutral fuels and industrial solutions. With 880 MW in planning and construction and a further 12 GW in projects under development, the company is one of the leading players in the green hydrogen industry. Hy2gen’s first plants are being built in France, Norway, Canada, Germany, and the USA.

According to Hy2gen, the facilities that will be constructed will produce green hydrogen-based fuels for maritime and ground transport, aviation, and industrial applications, helping to decarbonize these sectors.

Raphaël Lance, Head of Mirova’s Energy Transition Infrastructure Funds said:

“Mirova is committed to financing sustainable solutions for the energy transition. We are convinced that green hydrogen has a key role to play in the decarbonisation of the industry and are proud to partner with Hy2gen and support their ambition to become a key player in the deployment of this energy of the future.”

Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, added:

“CDPQ is delighted to take part in our first green hydrogen transaction alongside trailblazers of this promising vector of energy, one which has the potential to accelerate the decarbonization of highly polluting industries. With this investment in Hy2gen, we demonstrate our determination to bring concrete and pragmatic solutions to address today’s environmental challenges.”

According to strategic investor Technip’s CEO Arnaud Pieton, the investment in Hy2gen aims to “further strengthen our key market positioning in green hydrogen and its derivatives.” Pieton added:

“This investment confirms the consistency of our partnership choices to deliver on our strategy. We look forward to contributing our engineering capabilities and our proven project delivery expertise to the concretization and acceleration of Hy2gen projects.”