Ineos Energy set to help power £250m IPO of Edinburgh clean hydrogen business
Ineos Energy is to invest £25 million in the stock market debut of Edinburgh clean hydrogen business HydrogenOne Capital Growth.
Ineos will purchase 25 million shares in the forthcoming initial public offering of HydrogenOne, representing 10 per cent of the target fund raise of £250m.
The chemicals giant division will also have the right to appoint a non-executive director to the board and will have co-investment rights in projects identified by HydrogenOne – which says it will be the first London-listed fund dedicated to clean hydrogen for the energy transition towards net zero carbon emissions by 2050.
Ineos says clean hydrogen, which can be manufactured by using electricity from renewable power, or through carbon capture and storage of produced greenhouse gases, has “enormous” potential to reduce the greenhouse gas emissions from industrial gases, and to be used as a fuel in hard-to-decarbonise sectors in the energy system.
HydrogenOne will provide access to clean hydrogen through investment in a diversified portfolio of hydrogen and complementary hydrogen-focused assets to deliver “capital growth with a strong sustainability focus”.
Additionally, the firm is expected to qualify for the London Stock Exchange's Green Economy Mark at admission, which recognises companies that derive at least half of their total annual revenues from products and services that contribute to the global green economy.
Ineos claims to currently be Europe’s largest producer of hydrogen, making around 300,000 tonnes of hydrogen a year mainly as a co-product from its chemical manufacturing operations. It also says it is the region’s biggest existing operator of electrolysis, the critical technology to produce hydrogen for power generation, transportation, and industrial use.
Furthermore, it expects to develop further partnerships with major organisations involved in the development of new applications.
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 presents an important opportunity for our businesses as the market for clean hydrogen unfolds… [and] represents a major step in reshaping our energy business opening up future growth prospects for our business.”
Simon Hogan, chairman of HydrogenOne, also commented: “HydrogenOne is the first of a kind. We welcome Ineos’ investment in the company and we are looking forward to expanding our collaboration.”