KKR, a global investment firm, and IGNIS, a prominent Spanish renewable energy group, have joined forces to launch IGNIS P2X, a platform focused on developing green hydrogen and ammonia projects.
This partnership aims to decarbonize hard-to-abate sectors through significant financial backing and a robust pipeline of projects.
KKR’s commitment of up to €400 million to the IGNIS P2X platform signals strong confidence in the future of green hydrogen. The joint venture will own and develop around 20 GW of Power-to-X (P2X) projects globally, focusing on green hydrogen, ammonia, e-methanol, e-fuels, and sustainable aviation fuel (SAF) production plants. These projects will be strategically located near large industrial off-takers, enhancing their feasibility and integration into existing industrial operations.
IGNIS, with its extensive portfolio of over 300 renewable projects in ten countries and 6.6 GW of power assets under management, brings significant expertise to this venture. The P2X platform aims to leverage this experience to deliver integrated renewable solutions, primarily wind and solar, associated with hydrogen and ammonia projects.
The ambition to decarbonize hard-to-abate sectors such as refining, steel, chemicals, and fertilizers through green hydrogen is laudable. However, it is essential to compare these goals against industry benchmarks and existing technologies. Green hydrogen production, while promising, faces challenges in scalability, cost, and infrastructure development.
According to the International Energy Agency (IEA), green hydrogen currently accounts for a minuscule portion of global hydrogen production due to high production costs and limited infrastructure. The success of initiatives like IGNIS P2X hinges on overcoming these hurdles through technological advancements and economies of scale.
Ryan Miller, Managing Director in KKR’s European Infrastructure team, highlights the platform’s potential to drive decarbonization in heavy industry, bolstered by favorable regulatory environments. The European Union’s regulatory framework, including the Green Deal and Hydrogen Strategy, provides significant support for hydrogen projects. This regulatory backing is crucial for the financial viability and expansion of green hydrogen initiatives.
Antonio Sieira, CEO of IGNIS, emphasizes the strategic importance of this partnership for advancing P2X projects. The collaboration with KKR is expected to enhance IGNIS’s capabilities in renewable integration and industrial applications, positioning it as a leader in the emerging green hydrogen market.
