INEOS will acquire 25 million shares in HydrogenOne’s upcoming initial public offering, accounting for 10% of the £250 million goal total.
Additionally, INEOS will have the opportunity to select a non-executive director to the Board of Directors and will have co-investment rights in HydrogenOne-identified projects.
Clean hydrogen, which may be created using renewable energy or by carbon sequestering and storing produced greenhouse gases, has huge promise for reducing greenhouse gas emissions from industrial gases and for use as a fuel in energy systems that are difficult to decarbonize. The EU and national governments have set clear targets for widespread hydrogen use throughout Europe by 2030.
HydrogenOne’s mission is to provide access to clean hydrogen by investing in a diverse portfolio of hydrogen and complementary hydrogen-related assets with a strong sustainability focus. HydrogenOne is projected to qualify for the London Stock Exchange’s Green Economy Mark upon entry, which recognizes companies that generate 50% or more of their annual sales from green products and services. HydrogenOne will invest primarily in private hydrogen assets, but will also consider publicly traded hydrogen assets in global markets.
INEOS is perfectly positioned to capitalize on these developing prospects, which are being fueled by growing demand for inexpensive zero-carbon energy sources. It is now Europe’s largest hydrogen producer, producing over 400,000 tonnes of hydrogen per year primarily as a byproduct of its chemical manufacturing operations. Additionally, it is Europe’s largest existing electrolysis operator, a crucial technology for producing hydrogen for power production, transportation, and industrial use.
Brian Gilvary, Executive Chairman of INEOS Energy said, “The INEOS investment in HydrogenOne will help to accelerate and diversify INEOS’ existing clean hydrogen strategy. It marks the beginning of another substantial and long-term partnership, opening new windows into the clean hydrogen world for INEOS. It presents an important opportunity for our businesses as the market for clean hydrogen unfolds. Our experience in storage and handling of hydrogen combined with our established know-how in electrolysis technology, puts us in a unique position to drive progress towards a carbon-free future based on hydrogen. This deal represents a major step in reshaping our energy business opening up future growth prospects for our business.”
Simon Hogan, Chairman of HydrogenOne, added “HydrogenOne is the first of a kind. We welcome INEOS’ investment in the company and we are looking forward to expanding our collaboration.”