The world’s third-largest chemical company, Ineos, has agreed to become a cornerstone investor in HydrogenOne Capital Growth, a new fund that will focus on investing in clean hydrogen projects.
Ineos, which is owned by British billionaire Sir Jim Radcliffe, will purchase £25 million (10%) in shares when HydrogenOne floats on the London Stock Exchange. This will be the first fund listed in London to be focused purely on clean hydrogen projects for the energy transition.
INEOS Energy’s executive chairman, Brian Gilvary, said about the development:
“The INEOS investment in HydrogenOne will help to accelerate and diversify INEOS’ existing clean hydrogen strategy. It marks the beginning of another substantial and long-term partnership, opening new windows into the clean hydrogen world for INEOS. It presents an important opportunity for our businesses as the market for clean hydrogen unfolds.”
HydrogenOne plans to invest in both green hydrogen, which is produced through electrolysis using renewable energy, and blue hydrogen, which is produced from natural gas with the associated carbon emissions being mostly captured and stored. Oil and gas companies like BP, the owner of the Castrol lubricant brand, have been keen to develop blue hydrogen because they already have much of the required knowhow and infrastructure in place.
Ineos is Europe’s biggest producer of hydrogen. At present, it produces approximately 400,000 tonnes each year. It is also involved in efforts to develop the demand for hydrogen, which is widely seen as a viable option for sectors that face challenges in decarbonising using renewably generated electricity.