HydrogenOne Capital Growth and funds managed by Foresight Group are to invest in HH2E, a German company that specialises in developing projects to decarbonise industry using green hydrogen.
HydrogenOne is to invest £5m (€6m) alongside Foresight as part of a funding round expected to total at least £10m.
The duo have also signed a framework agreement giving the right to co-invest in HH2E’s projects directly.
They will provide a substantial part of the development and construction capital covering five large projects.
The projects are expected to be at industrial locations across Germany and will cost in excess of €500m to fully develop.
The purchase of a minority equity stake gives HydrogenOne and Foresight each the right to a board seat at HH2E.
The first project HH2E is expecting to launch is likely to be at an industrial site in Germany, where there are plans for a new facility starting up in 2025, supplying on-site industrial customers.
HydrogenOne chair Simon Hogan said: “HH2E is HydrogenOne’s second investment into a clean hydrogen developer company. HH2E are identifying substantial clean hydrogen projects in Germany, which offer the potential for significant investment there for our shareholders.”
HH2E co-founder and chief financial officer Mark Page said: “We’re delighted to have two substantial institutional investors in the green energy space backing our growth plans.
“This financing agreement enables a massive acceleration of our development plans and represents a substantial portion of the capital we expect to deploy on sites in the next five-six years.”
Foresight Group partner Matt Hammond said: “Germany represents an attractive market, given the commitment by its industrial base to decarbonise with green energy, and especially given the strong political support to build a green hydrogen economy.
“HH2E is well positioned to take a leading role in this market and we are excited to be supporting the company in delivering on this ambition.”