EUR24 million investment in Sunfire GmbH

RNS Number : 3032P

HydrogenOne Capital Growth PLC

18 October 2021

 

THIS ANNOUNCEMENT IS NOT AN OFFER FOR SALE OR SUBSCRIPTION OR SOLICITATION TO PURCHASE SHARES IN ANY JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

18^th October 2021

HydrogenOne Capital Growth plc

€24 million investment in electrolyser company Sunfire GmbH

HydrogenOne Capital Growth plc ("HydrogenOne" or the "Company"), the first London listed hydrogen fund, offering growth potential in clean hydrogen and related technologies, is pleased to announce that it has today signed definitive agreements for its first private equity investment of €24m (£20m) in Sunfire GmbH ("Sunfire"), a leading electrolyser producer, for a minority equity stake. HydrogenOne has the right to a board observer seat at Sunfire, and intends to collaborate with Sunfire on the roll-out of future hydrogen manufacturing projects.

HydrogenOne's investment in Sunfire forms part of a €109 million fundraising round, introducing other new investors including Planet First Partners, Lightrock and Carbon Direct Capital Management, alongside existing strategic investors.

Sunfire is a leading manufacturer of alkaline and solid oxide electrolysers, which can be deployed to manufacture clean hydrogen in carbon-intensive sectors that are currently reliant on fossil fuels for energy and hydrogen supply. In addition, Sunfire produces fuel cell solutions for off grid power and heating markets.   

Electrolysis, using renewable electricity, is a key process in the manufacture of clean hydrogen, which can be used to reduce greenhouse gas emissions in heavy industry, transport, heating and power generation. In the EU alone, current policies call for 80GW of electrolysis by 2030, compared to less than 1 GW today.

Sunfire has recently announced plans for the rapid deployment of its pressurised alkaline electrolysis technology, building a large-scale electrolyser production site in Germany, with an annual manufacturing capacity of 500 MW by 2023.  With this fundraise, Sunfire intends to significantly expand its electrolyser manufacturing capacity to multi-gigawatt scale in the coming years. In addition, Sunfire is pioneering the use of its proprietary solid oxide technologies to manufacture of clean 'e-fuels', which can be used in jet aviation, through ownership in industry joint ventures.

Simon Hogan, Chairman of HydrogenOne said "we are delighted to announce the first private capital investment for HydrogenOne. Sunfire was a one of the pipeline investments we identified pre-IPO and fully aligns with our strategy to invest material positions in companies that are pivotal to the increased production of clean hydrogen. Sunfire is one of just a handful of leading electrolyser suppliers focussing on providing solutions to enable the production of clean hydrogen, in a market that is poised for significant growth in the coming years."

Nils Aldag, Sunfire's CEO commented " electrolysis technologies are critical for increasing green hydrogen supply that is needed to decarbonize industrial companies at significant scale. The new funds will enable Sunfire to industrialise its two principal electrolysis technologies. By building the first in a series of production gigafactories, we aim at creating both meaningful electrolysis capacity for our customers and attractive returns for our investors ."

The Company's LEI is 213800PMTT98U879SF45.

For further information, please visit ww.hydrogenonecapitalgrowthplc.com or contact:

HydrogenOne Capital LLP - Investment Adviser	[phone]
JJ Traynor/Richard Hulf
Panmure Gordon - Corporate Broker and Financial Adviser
Tom Scrivens Alex Collins	[phone]

About HydrogenOne

HydrogenOne 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 focussed assets. INEOS Energy is a strategic investor in HydrogenOne. HydrogenOne has deployed c. 10% of its AUM in a portfolio of clean hydrogen listed equities, and together with today's announcement, has now deployed approximately 30% of the net proceeds from the 2021 IPO. The Company is listed on the London Stock Exchange's main market (ticker code: HGEN).

About Sunfire

Founded in 2010, Sunfire is a global leader for industrial electrolysers. Sunfire employs more than 270 people and in Germany, Norway, and Switzerland. With innovative and proven solutions, Sunfire is addressing a key challenge of today's energy system: Providing renewable hydrogen and e-Fuels as substitutes for fossil energy sources. Sunfire's electrolysers - based on alkaline and solid oxide technologies - enable the transformation of carbon-intensive industries that are currently dependent on oil, gas, or coal.  

IMPORTANT NOTICE

This announcement does not constitute an offer to sell, or the solicitation of an offer to acquire or subscribe for, shares in the Company in any jurisdiction. The distribution of this announcement outside the UK may be restricted by law. No action has been taken by the Company that would permit possession of this announcement in any jurisdiction outside the UK where action for that purpose is required. Persons outside the UK who come into possession of this announcement should inform themselves about the distribution of this announcement in their particular jurisdiction.

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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