Energy company TotalEnergies, together with industrial gas supplier Air Liquide and concessions and construction company Vinci, has set up an investment fund to help kickstart the clean hydrogen industry.
If it reaches its target of €1.5 billion, it will be the world’s largest fund for clean hydrogen. The three French companies have all pledged, as anchor partners, to invest €100 million each, with a total of some €800 million in commitments. When combined with debt financing and public policies, it is expected that the fund will support some €15 billion worth of hydrogen-related projects.
Like many former oil majors, TotalEnergies, which also makes Total lubricant products, is seeking to diversify as it navigates the energy transmission. Patrick Pouyanne, the CEO of TotalEnergies, said about the new fund:
“We believe that clean, renewable hydrogen will play a key role in the energy transition, and TotalEnergies wants to be a pioneer in its mass production. We are convinced that a collective effort is needed to kick-start the hydrogen sector and take it to scale.”
The fund will be used as a vehicle to invest in large-scale projects to support upstream and downstream aspects of the low-carbon and renewable hydrogen sector in Europe, Asia and the Americas. It is expected to begin operating later this year and be managed by Hy24, which is a joint venture of FiveT Hydrogen, a hydrogen investment platform, and Ardian, a Paris-based investment house. It should also close its first deal before the end of this year.
