Green hydrogen developer Hygen has secured a multi-million pound funding deal with HSBC UK to expand capacity at its Birmingham production site.
The funds will also enable Hygen to develop additional sites across the UK.
Thie deal is HSBC UK’s first in the green hydrogen sector.
HSBC Equipment Finance will provide Hygen funding in the form of asset finance lent against the business’s site at the Tyseley Energy Park.
Kevin Selleslags, Hygen CEO, said: “We are committed to leading the way in developing and delivering more low-carbon hydrogen projects across the UK so HSBC UK’s confidence in our business, and the potential of hydrogen as a low-carbon energy source, is truly encouraging.
“Securing this bank funding also sends an important signal to the market about the opportunities for this technology.”
Hygen is a developer, producer and asset owner of low-carbon hydrogen production facilities in the UK and Europe.
From its Tyseley site, Hygen supports the UK’s burgeoning hydrogen industry, supplying green hydrogen to major customers like National Express and JCB for their own decarbonisation initiatives.
Akhil Shah, relationship director at HSBC UK, added: “The green hydrogen industry is still in its early stages of development and requires better access to both equity and debt funding to truly take off.
“This deal underlines HSBC UK’s commitment to this emerging sector, supporting the development of new technologies essential for the transition to a net-zero economy.”