The launch of Hy24, “the world’s largest investment platform dedicated only to clean hydrogen infrastructure,” has been announced by Ardian and FiveT Hydrogen. The first fund from Hy24 is anticipated to be worth €1.5 billion.
Ardian and FiveT Hydrogen have formed a joint venture to create the investing platform. “Top industrial and financial shareholders” have already pledged sums totalling €800 million, according to the partners. Upwards of 50% of the €1.5 billion set aside for the first fund have been raised. Air Liquide, a producer of industrial gas, TotalEnergies, and Vinci, a construction company, have all expressed interest in participating. Each of the three French firms wants to pay €100 million. Hy24 is the outcome of a collaboration between Air Liquide, TotalEnergies, Plug Power, Baker Hughes, VINCI Concessions, and Chart Industries, which has now been joined by AXA.
Plug Power, Chart Industries, Baker Hughes, Lotte Chemical, and Axa have all expressed interest in joining Hy24, as having Groupe ADP, Ballard, EDF, and Schaeffler, with additional names to be revealed soon. Hy24 intends to “generate investment options for hydrogen projects all over the world” by bringing together more global institutional investors and industrial enterprises. The goal of the organization, according to the company, is to accelerate the expansion of the sustainable hydrogen ecosystem by financing significant strategic initiatives and utilizing the coalition of industrial and financial stakeholders.
Hy24’s first fund will be created as an “impact fund” under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR), to reduce global CO2 emissions. The partners claim that their collaboration will allow them to apply proven technology to established infrastructure assets, giving investors access to the new asset class with the potential to develop at the same rate as the other renewable energy sources.
According to the organization, the portfolio will be spread across several geographies – Europe, America, and Asia – and value chains, ranging from upstream initiatives like green hydrogen generation to downstream projects like self-consumption fleets and refuelling stations. The partners emphasize the value creation prospects in job creation and the decarbonization of “difficult-to-decarbonize” sectors, such as long-haul and heavy-duty transportation, such as shipping and aviation, as well as numerous industrial uses, such as steel production, among others.
Ardian, a joint venture partner, is a private investment company specializing in infrastructure investments. FiveT Hydrogen is a sustainable hydrogen investment platform that is expected to provide its experience and connections to the hydrogen value chain to the joint venture.