Hexagon Purus has agreed to purchase 40% of the liquid hydrogen business of Cryoshelter. The transaction follows Hexagon Composites’ acquisition of a 40% stake in Cryoshelter’s liquid natural gas (LNG) business.
Cryoshelter’s liquid hydrogen tank technology is in its infancy and is based on superior and differentiated LNG technology that delivers greater fuel capacity and longer hold durations (a vital requirement for cryogenic storage) than competitor products. The acquisition adds early-stage experience in liquid hydrogen tank technology for zero-emission mobility applications, which could result in a future complementary product to Hexagon Purus’ market-leading compressed hydrogen cylinder technology.
The transaction’s essential terms and structure
- EUR 3.5 million for a 40% stake in Cryoshelter’s liquid hydrogen company.
- The agreement calls for the separation of Cryoshelter into distinct legal organizations for its liquid hydrogen and liquid natural (renewable) gas businesses, allowing Hexagon Purus to invest directly in early-stage liquid hydrogen tank technologies.
- The division of Cryoshelter’s liquid hydrogen and liquid natural gas businesses reflects the distinct stages of market and product development – there is an established market for liquid natural gas mobility solutions, and Cryoshelter’s technology is already in a pre-commercial phase – whereas the market and products for liquid hydrogen storage are in their infancy, with a longer runway to commercialization.
- Synergies between the distinct business units are anticipated to be maintained in critical functional areas, when practicable through resource pooling.
- Over the next few years, Hexagon Purus and Cryoshelter will continue to develop the technology and business.
- Hexagon Purus has the option to acquire the remaining Cryoshelter stakes over the following five to ten years.
- The transaction is scheduled to close in the third quarter of 2022, subject to certain closing conditions being met and customary regulatory clearances being obtained.
