The Rise Fund, an investment fund managed by TPG, is investing in the hydrogen business in Spain through its company Matrix Renewables. The group has reached an agreement with the Spanish group Rolwind Renovables to create Hyren, a platform that will focus on the development of green hydrogen projects in Spain.
The aim is to participate in every phase of the hydrogen business, from the production of renewable energy to the manufacture and sale of hydrogen and all other products derived from it. Matrix has identified 1,500 MW in projects in Andalusia, Castilla-La Mancha, and Aragon, along the future hydrogen pipeline corridors that Enagás is planning to connect to the H2Med.
The goal of Matrix is to reach 4,000 MW in ten years, thus becoming the largest independent hydrogen project in Spain. The Rise Fund counts on its board and among its founders’ well-known professionals from the business and artistic world, many of them great international fortunes or VIP characters from the financial world. Although Matrix’s investment with Hyren could reach $7.093 billion, the group is open to incorporating industrial or financial partners.
The hydrogen business in Spain has been dominated by large energy companies, such as Repsol and Cepsa in the oil industry, and Iberdrola and Endesa in the electricity sector. There are other smaller companies, like Acciona, Enagás, EDP, and BP, but they are usually associated with other groups or alliances. Cepsa currently has the largest hydrogen project in Spain, with 2,000 MW in Andalusia, which would be surpassed by The Rise Fund’s platform. Matrix is not the only investment fund that has located its subsidiary in Madrid for its renewable energy business. Goldman Sachs has its Verdalia biogas subsidiary, and Blackstone has its Fisterra renewable energy platform in the Spanish capital.
Matrix has a solid position in the field of renewables in Spain, in addition to Chile, the US, Colombia, and Italy. The company has more than 12,000 MW in its portfolio, including operational, under development, and project agreements with the Andalusian group Rolwind. The Rise Fund manages assets worth $14 billion and is headquartered in London, but it is the division for energy transition businesses created by the US giant TPG, which has $135 billion in assets under management.
The new platform will have an important impact on the hydrogen business in Spain, as it will create competition for the large energy companies, which have dominated the sector so far. The investment in renewable energy for hydrogen production and the development of hydrogen electrolyzers and plants will help the country meet its goals of reducing greenhouse gas emissions, improving air quality, and achieving carbon neutrality by 2050.
The Rise Fund’s investment in the hydrogen business in Spain through Matrix Renewables and its creation of Hyren with Rolwind Renovables represents a major opportunity for the country to develop a competitive and sustainable hydrogen sector, as well as for investors to obtain significant returns on their investment. The involvement of well-known professionals from the business and artistic world in The Rise Fund’s board and founders adds prestige and influence to the project. The potential impact of the project on the energy transition, the environment, and the economy of Spain is significant, but it also requires careful planning, execution, and monitoring to ensure its success and avoid potential challenges or controversies.
