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

Strategic Insights -

The chemicals giant Ineos is making a strategic move into the hydrogen market, investing £25m in a new fund that will focus on clean hydrogen energy. The investment, which gives Ineos co-investment rights and a seat on the fund's board, reflects the company's growing ambitions in energy beyond its traditional oil and gas business. Ineos's energy division, led by former BP finance chief Brian Gilvary, sees hydrogen as a key component in the transition to a lower-carbon economy. The company is already Europe's largest hydrogen producer, making about 300,000 tonnes annually.

Key Takeaways:

  • Ineos's £25m investment in HydrogenOne Capital Growth will give the company a 10% stake in the fund, which is raising £250m in an upcoming float on the London stock market.
  • The investment is a significant move by Ineos into the hydrogen market, reflecting the company's growing ambitions in energy beyond its traditional oil and gas business.
  • HydrogenOne Capital Growth will be the first UK-listed investment company to focus on hydrogen, and the fund plans to invest in public and private hydrogen companies and projects as well as energy storage and carbon capture projects.
  • The fund's parent company, HydrogenOne Capital, was set up in 2020 by Richard Hulf, a fund manager with experience in the energy industry, and Dr John Joseph Traynor, a former Shell executive.
  • Ineos has already made significant investments in the energy market, including buying Dong Energy's North Sea oil and gas business in 2017 and buying the remainder of BP's petrochemical assets for $5bn in June last year.
  • The hydrogen market is expected to grow significantly, with governments announcing more than $70bn in funding for hydrogen projects and research suggesting that clean hydrogen could hit sales of $2.5trn by 2050.

Statistics:

  • £25m: the amount Ineos is investing in HydrogenOne Capital Growth.
  • 10%: the stake Ineos will hold in HydrogenOne Capital Growth.
  • £250m: the total amount the fund is raising in an upcoming float on the London stock market.
  • $70bn: the amount of funding governments have announced for hydrogen projects.
  • $2.5trn: the estimated sales of clean hydrogen by 2050.
  • 300,000: tonnes of hydrogen produced annually by Ineos.

Sources:

  • "Sir Jim Ratcliffe's chemicals empire is getting behind the global hydrogen rush" by Rachel Millard
  • [References to original articles removed as they are not provided in the original text]