Our Corporate Energy team has advised HydrogenOne Capital Growth Plc ("HydrogenOne") on an £8.4 million (EUR 10 million) investment in Strohm Holding B.V. ("Strohm"), to fund the expansion of manufacturing capacity of Thermoplastic Composite Pipe for use in offshore green hydrogen projects.
HydrogenOne invested in Strohm alongside existing investors Shell Ventures, Chevron Technology Ventures and Evonik Venture Capital, in a funding round totalling £11.8 million (EUR 14 million) at first close.
Strohm, a private supply chain company, is focused on the offshore wind-to-hydrogen sector. The company is developing safe and dependable pipeline solutions, whereby green hydrogen generated at offshore wind turbines can be transported to shore via Strohm's subsea pipe infrastructure.
Over nine gigawatts ("GWs") of offshore green hydrogen projects have been proposed in the North Sea basin, with further multi-GWs growth potential, alongside Carbon Capture, Utilisation and Storage ("CCUS"), all of which will require specialist pipeline solutions at scale.
The fundraising is expected to enable Strohm to scale up its plant capacity in the Netherlands and deliver on its energy transition agenda as it continues to support clients towards net-zero goals with its durable, lightweight and 100% recyclable pipe solution, proven to reduce the CO2 footprint of pipeline infrastructures by up to 60%.
This is the ninth investment that the team has supported HydrogenOne on in the past year, having also recently advised the company on its first ever private equity investment in Sunfire GmbH and investments in green hydrogen companies Gen2, Elcogen, and HH2E.
Principal associate Siân Dewing led on the deal, alongside a team of Corporate Energy partner Gareth Baker and associates Kerriann Dixon, Hannah Gough, and Chris Kay.
Speaking on the deal, Siân Dewing said: "We're incredibly pleased to have continued our advisory support to HydrogenOne, assisting a key client on its latest investment of 2022, to further their green hydrogen portfolio. We're looking forward to seeing what's next in the company's investment pipeline and to supporting its future success in renewable energy."
Gowling WLG's multi-disciplinary Energy team has a market-leading reputation, operating seamlessly around the globe. This latest transaction solidifies the team's position at the forefront of investments into the clean hydrogen sector, and follows a series of recent investments for longstanding client HydrogenOne, including investment in Cranfield Aerospace Solutions and HiiRoc and NanoSun.