HydrogenOne Capital Growth has signed definitive agreements for an investment of £8.4m in Strohm Holding. HydrogenOne is the first LSE-listed investment fund devoted to clean hydrogen.
HydrogenOne is investing alongside Shell Ventures, Chevron Technology Ventures, and Evonik Venture Capital in the first closure of a £11.8m investment round for Strohm. In addition, HydrogenOne may invest up to an additional £1.7m in the second closure of this investment round, which is estimated to be at least £5.1m in total and is likely to occur later in 2022. After investing in Strohm, HydrogenOne will be eligible for a board seat.
Strohm is a private supply chain firm that focuses on the offshore wind-to-hydrogen sector and supports a global green energy transition that is dependable, quicker, and less expensive. Green hydrogen produced by offshore wind turbines may be transferred to land using Strohm’s underwater pipeinfrastructure, which is currently being developed by the business.
Strohm is a global market leader in the design and production of Thermoplastic Composite Pipe (abbreviated “TCP”) from its headquarters in Amsterdam, the Netherlands. TCP is more cost-effective than steel pipe and produces approximately fifty percent fewer greenhouse gas emissions. Due to the fact that TCP is a flexible pipe, it may be deployed offshore using the same techniques as array cables. The technique may be utilized to carry hydrogen, carbon dioxide, ammonia, and water securely, whereas steel solutions suffer from corrosion and embrittlement.
This fundraising is anticipated to enable Strohm to increase 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 percent recyclable pipe solution, which has been shown to reduce the CO2 footprint of pipeline infrastructures by as much as 60 percent.
Over 9 gigawatts (“GWs”) of offshore green hydrogen projects have been proposed in the North Sea basin, with additional multi-GWs development potential, in addition to Carbon Capture, Utilisation, and Storage (“CCUS”), all of which will require scalable, specialized pipeline solutions. Strohm is well-positioned to support the growth of the offshore hydrogen and CCUS markets.
Simon Hogan, Chairman of HydrogenOne, commented: “We continue to demonstrate theimpressive pace and quality of our capital deployment through this latest investment in Strohm. This is our ninth private investment since the launch of our clean hydrogen-focused fund and an excellent addition to our growing portfolio.
“Strohm’s core commitment to a sustainable future, through reduction of the carbon footprint of pipelines around the globe and provision of solutions for clean hydrogen applications, is one we support. We look forward to working with Strohm’s management team as it scales up to meet the growing demand for hydrogen as an energy source.”
Martin van Onna, Managing Director of Strohm, said: “We recognized the fit between clean hydrogen and offshore wind at an early stage, and developed a compelling pipe solution to support it. TCP can transfer up to nine times the amount of energy compared to a cable, and can be used to store hydrogen, thereby increasing the uptime of offshore wind farms. Thepipe’s flexibility, lack of corrosion, fatigue and embrittlement make it the superior pipeline solution for offshore wind farms, generating hydrogen. The investment by HydrogenOne allows us to increase our capacity to service this exciting and growing market.”
Peter van Giessel, Partner at Shell Ventures, said: “We are looking forward to working with HydrogenOne to further realize the potential of Strohm. The company has qualified its products, commercially deployed them in various applications across the world and has now reached the inflection point. This investment underlines the versatility of Strohm’s technology and its potential to play an important enabling role in the offshore renewable space.”
Bernhard Mohr, Managing Director of Evonik Venture Capital, added: “As a long-term investor and development partner, Evonik actively supports Strohm’s contribution to the energy transition. The jointly developed thermoplastic composite pipes are the most reliable and cost-effective solution for the transport of offshore hydrogen. With HydrogenOne, we found the ideal partner to bring the technology to scale and establish Strohm in the field of renewable hydrogen.”