Ineos Invests £25m in Hydrogen Fund Ahead of London Stock Market Listing

Strategic Insights -

The chemicals giant Ineos is expanding its presence in the energy sector with a significant investment in a new hydrogen fund. The company is buying £25m worth of shares in HydrogenOne Capital Growth, a UK-listed investment company focused on clean hydrogen energy. This move marks a significant step in Ineos's diversification strategy, as it seeks to reduce its reliance on oil and gas. According to Brian Gilvary, the head of Ineos Energy, the investment is a crucial business opportunity that will enable the company to test and explore the hydrogen market.

Key Takeaways:

  • Ineos is investing £25m in HydrogenOne Capital Growth, a new UK-listed investment company focused on clean hydrogen energy.
  • The investment gives Ineos co-investment rights and allows the company to appoint a director to the fund's board.
  • HydrogenOne Capital Growth will invest in public and private hydrogen companies and projects, as well as energy storage and carbon capture programmes.
  • The fund plans to focus on developed markets such as Europe, the US, the Gulf, and Asia.
  • Governments have announced over $70bn in funding for hydrogen, and clean hydrogen could hit sales of $2.5trillion by 2050, according to research.
  • HydrogenOne Capital, the parent company of the new fund, was set up in 2020 by Richard Hulf, a fund manager, and Dr John Joseph Traynor, a former Shell executive.
  • Ineos is already Europe's largest hydrogen producer, making about 300,000 tons annually, mostly alongside its chemicals business.
  • A fifth of Ineos's hydrogen is made through electrolysis, and the company has significant ambitions in the energy transition.

Statistics:

  • Ineos's annual revenues are $61bn ( £44bn).
  • HydrogenOne Capital Growth has raised £250m from investors.
  • The global hydrogen market could be worth $2.5trillion by 2050.
  • Governments have announced over $70bn in funding for hydrogen.
  • Ineos makes about 300,000 tons of hydrogen annually, with about a fifth made through electrolysis.

Sources:

  • "Ineos invests £25m in hydrogen fund ahead of London listing", The Telegraph, [online] (2023)
  • "HydrogenOne Capital Growth raises £250m for hydrogen fund", Bloomberg, [online] (2023)
  • "Ineos to invest in hydrogen production as part of energy transition", Reuters, [online] (2023)