The £3.3 million investment by HydrogenOne in Gen2 Energy is part of a round expected to raise at least NOK140 million.
Gen2 shareholders must also give their approval before Gen2 can invest in the company.
HydrogenOne has bought a small amount of stock in Gen2. This gives them a seat on the Gen2 board and the chance to invest in Gen2’s projects.
Gen2 was founded in 2019 with the goal of making green hydrogen at a large scale by connecting to the abundant and cheap renewable power that is being made in the region. Hydroelectric power, which makes up the majority of Norway’s power mix, also has a big advantage over green electricity from wind and solar sources: It has a lot more uptime. This means that Gen2’s electrolysers could run almost nonstop, with lower hydrogen prices as a result.
Using electricity, the company wants to become a low-cost source of clean fuel and feedstock for businesses in the area. Gen2 is working on a number of projects in Norway that could start making electricity in 2024 or 2026. These projects are estimated to be worth 700MW.
HydrogenOne and HyCap are both investing in Gen2. Vitol, Höegh LNG, and the Knutsen Group are already backers of the project.
Simon Hogan, Chairman of HydrogenOne said “Gen2 marks HydrogenOne’s first step into investment into hydrogen supply projects, and we are looking forward to working with the Gen2 team to progress these exciting developments. This transaction demonstrates the breadth of opportunities available to HydrogenOne as we roll out our investment strategy.”
Jonas Meyer, Gen2’s CEO commented “We are very pleased to welcome HydrogenOne as a shareholder in Gen2, and look forward to working with their experienced team. Green hydrogen is expected to play a vital role in the path to a zero-emission society, and Gen2 is developing attractive projects with some of the lowest estimated capex and opex in Europe.”
