Chemicals and energy group commits to buying shares worth £25m as a cornerstone investor
05 July 2021 - 18:41
byRon Bousso and Huw Jones
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INEOS CEO Jim Ratcliffe with British Olympic sailor Ben Ainslie in London, Britain, April 26 2018. Picture: REUTERS/TOBY MELVILLE
London — HydrogenOne Capital Growth said on Monday it plans to list on the London Stock Exchange (LSE) to raise £250m for investing in clean hydrogen, a fuel that is forecast to play a major role in the energy transition.
The company — launched by former Royal Dutch Shell executive JJ Traynor and Richard Hulf, who has worked at ExxonMobil and been an energy fund manager at Artemis — had already won the backing of chemicals and energy group Ineos that has committed to buying shares worth £25m as a cornerstone investor.
Hydrogen has long been touted as a potential clean fuel as it only emits water vapour, but it remains a niche market used primarily by oil refineries and other industries.
The International Energy Agency (IEA) said that consumption of hydrogen-based fuels needs to grow sharply by 2050 to meet UN-backed targets of reducing greenhouse gas emissions to net zero.
HydrogenOne said it intends to provide access to clean hydrogen through investment in a diversified portfolio of hydrogen and complementary hydrogen-focused assets, delivering capital growth with a strong environment, social and governance (ESG) focus.
The company said it expects to publish a prospectus shortly for the 100p per share offering on the LSE’s premium segment, and to close the issue by the end of July.
“HydrogenOne is for energy investors who want to move beyond fossil fuels now, not later, and deploy substantial growth capital into the energy transition,” Traynor said.
The company will invest primarily in projects developed by private companies, which are the main drivers of hydrogen technologies today, he told Reuters.
It will be the first UK-listed investment company to focus on hydrogen assets and exclude fossil fuel producers.
“We think we could deploy significantly more capital in the future” than the initial raising, Traynor said.
For Ineos, Europe’s largest hydrogen producer, the investment offers access to projects in what is expected to be one of the fastest growing markets, Brian Gilvary, CEO of Ineos Energy, said.
“As the energy transition unfolds over the next decades, it gives us an opportunity to see how this market is developing,” Gilvary said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Ineos backs HydrogenOne London listing plans
Chemicals and energy group commits to buying shares worth £25m as a cornerstone investor
London — HydrogenOne Capital Growth said on Monday it plans to list on the London Stock Exchange (LSE) to raise £250m for investing in clean hydrogen, a fuel that is forecast to play a major role in the energy transition.
The company — launched by former Royal Dutch Shell executive JJ Traynor and Richard Hulf, who has worked at ExxonMobil and been an energy fund manager at Artemis — had already won the backing of chemicals and energy group Ineos that has committed to buying shares worth £25m as a cornerstone investor.
Hydrogen has long been touted as a potential clean fuel as it only emits water vapour, but it remains a niche market used primarily by oil refineries and other industries.
The International Energy Agency (IEA) said that consumption of hydrogen-based fuels needs to grow sharply by 2050 to meet UN-backed targets of reducing greenhouse gas emissions to net zero.
HydrogenOne said it intends to provide access to clean hydrogen through investment in a diversified portfolio of hydrogen and complementary hydrogen-focused assets, delivering capital growth with a strong environment, social and governance (ESG) focus.
The company said it expects to publish a prospectus shortly for the 100p per share offering on the LSE’s premium segment, and to close the issue by the end of July.
“HydrogenOne is for energy investors who want to move beyond fossil fuels now, not later, and deploy substantial growth capital into the energy transition,” Traynor said.
The company will invest primarily in projects developed by private companies, which are the main drivers of hydrogen technologies today, he told Reuters.
It will be the first UK-listed investment company to focus on hydrogen assets and exclude fossil fuel producers.
“We think we could deploy significantly more capital in the future” than the initial raising, Traynor said.
For Ineos, Europe’s largest hydrogen producer, the investment offers access to projects in what is expected to be one of the fastest growing markets, Brian Gilvary, CEO of Ineos Energy, said.
“As the energy transition unfolds over the next decades, it gives us an opportunity to see how this market is developing,” Gilvary said.
Reuters
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