Our Corporate Energy team has once again advised clean hydrogen-dedicated investment fund HydrogenOne Capital Growth Plc ("HydrogenOne"), this time on its investment into a development project located in Thierbach, Germany, HydrogenOne's first investment commitment in a green hydrogen supply project.
The Thierbach development project relates to the construction of an industrial-scale green hydrogen production plant that will serve customers across the energy, transportation and industrials sectors in Germany as an alternative to fossil fuels. It is projected to have the capacity to produce approximately 6,000 tonnes of green hydrogen per year and further expansion phases could increase production to more than 60,000 tonnes.
German green energy company HH2E AG ("HH2E"), in which HydrogenOne invested £5 million (€6 million) in May 2022, will build and operate the Thierbach Project, with HydrogenOne investing £2.4 million (€2.8 million) into the project alongside HH2E and other institutional investors including Foresight Group LLP. The investment is expected to complete in the coming months, with the potential for co-investment in further hydrogen supply projects in the future.
HydrogenOne was advised by Gowling WLG's Corporate Energy team, led by Corporate principal associate Sian Dewing, with support from Corporate Energy partner Gareth Baker, Projects & Infrastructure partner Jonathan Brufal, Corporate associate Emily Chittick and Financial Services & Funds associate Chris Kay, as well as Corporate partner Andreas Woelfle and legal director Florian Holfeld from the firm's Stuttgart office.
The team has advised HydrogenOne on a number of significant investments over the past couple of years, including its £8.4 million investment in private supply chain company Strohm and its original investment in HH2E to fund the development of new green hydrogen projects in Germany.
Speaking about the deal, Sian Dewing said: "This latest deal demonstrates the significant growth and demand in the clean hydrogen sector, with this project potentially resulting in the avoidance of more than 10 million tonnes of greenhouse gas emissions over its lifetime.
"With an impressive investment strategy and ambition, HydrogenOne is a fantastic business that's making a real impact in the clean energy industry and we're looking forward to continuing working with the team on future projects."
Gowling WLG's multi-disciplinary Energy team has a market-leading reputation and operates seamlessly around the globe. The deal is another example of the team's position in the energy sector and follows a series of recent mandates, including advising Pacific Green Energy Storage on its acquisition of Sheaf Energy Limited and Eelpower on its joint venture with Renewable Power Capital.