London listed hydrogen fund HydrogenOne (LON: HGEN) has seen its shares edge higher Monday on the news it has signed definitive agreements for its first private equity investment of €24m (£20m) in Sunfire GmbH.
The company will take a minority stake in the electrolyser producer. Electrolysis, using renewable electricity, is a process in the manufacture of clean hydrogen, which can reduce greenhouse gas emissions.
HydrogenOne also has the right to a board observer seat at Sunfire, and intends to collaborate with Sunfire to roll out future hydrogen manufacturing projects.
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.”
The investment in Sunfire forms part of a €109 million fundraising round, with other new investors, including Planet First Partners, Lightrock, and Carbon Direct Capital Management.
Sunfire has recently announced plans to rapidly deploy its pressurised alkaline electrolysis technology, building a large-scale electrolyser production site in Germany with an annual manufacturing capacity of 500 MW by 2023. The proceeds from the fundraise will see Sunfire expand its electrolyser manufacturing capacity to a multi-gigawatt scale in the coming years.
“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,” added Hogan.
HydrogenOne shares are trading at 110.6p, up 1.38% from Friday's close.
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