HydrogenOne is investing £3.3m (NOK40m) in Gen2 Energy AS as part of a funding round expected to total at least NOK140m. With this purchase of a minority equity stake, HydrogenOne has the right to a board seat at Gen2, and the potential to co-invest in Gen2’s projects.
Gen2 was established in 2019, with the ambition to manufacture green hydrogen, at scale, by connecting to the abundant and low cost renewable power which is being generated in excess of market demand in the region. Hydroelectric power, the key constituent in the power mix in Norway, has the additional advantage of very high uptimes compared to green electricity from wind and solar sources, meaning Gen2’s electrolysers could operate virtually 24/7, with lower unit costs of hydrogen as an outcome.
By converting this electricity to green hydrogen, and shipping the hydrogen to industrial customers, the company aims to become a regional supplier of low cost clean fuel and feedstock. Gen2 has a series of projects in its pipeline, totalling an estimated 700MW, in Norway to begin with, which could commence production in 2024-2026.
HydrogenOne is investing in Gen2 alongside HyCap, while existing industrial backers include Vitol, Höegh LNG, and the Knutsen Group.
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.”
HGEN : HydrogenOne buys Norwegian hydrogen supply project