Our Corporate Energy team advised HydrogenOne Capital Growth Plc ("HydrogenOne") on a €6 million investment in HH2E AG ("HH2E"), to fund the development of new green hydrogen projects in Germany.
HydrogenOne invested in HH2E alongside funds managed by Foresight Group LLP as part of a round expected total at least €12 million, and both investors have signed a framework agreement giving them the right to co-invest in HH2E's projects directly.
As part of the framework agreement, the duo have the right to provide a substantial part of the development and construction capital covering five large projects, which are expected to be at industrial locations across Germany and cost in excess of €500 million to fully develop and construct. These projects form part of HH2E's proposed €2.7 billion investment to build 4 gigawatts of green hydrogen and green heat-production capacity by 2030.
A specialist in developing projects to decarbonise industry, HH2E uses green hydrogen, with associated storage and hydrogen power generation facilities, with the intention of providing 24/7 clean energy for customers. The investment and framework agreement is expected to enable massive acceleration of the company's development plans over the next 5-6 years, with an immediate emphasis on decarbonising existing industrial sites, moving to greenfield project development over time.
Stephen Bowman led our cross-border team acting for HydrogenOne on the investment. London-based Corporate-energy partner Gareth Baker, and project-finance partner Nath Curtis, also advised HydrogenOne, supported by Christopher Kay. Andreas Woelfle, the head of our corporate practice in Germany, led on the German aspects of the transaction, working with legal director Florian Holfeld, and trainee solicitor Athina Gaitanou.
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 including the investment in Gen2, Cranfield Aerospace Solutions and HiiRoc and NanoSun.