Everfuel, Hy24 create € 200m JV for Green Hydrogen infra in Nordics

Green H2 firm Everfuel and Hy24, managing the world's largest clean hydrogen infrastructure fund, have recently announced the creation of a joint venture to finance the accelerated development of electrolyzer capacity across the Nordics. 

According to the press statement, the JV will be named Everfuel Hy24 A/S and fully consolidated in Everfuel's accounts, with the company owning 51 percent stakes and the Hy24-managed Clean H2 Infra Fund owning the remaining 49 percent.

The JV plans to invest a total of € 200 million in equity in green hydrogen infrastructure in Denmark, Norway, Sweden and Finland. This will enable the new venture to fund, build, own and operate up to 1 GW of green hydrogen projects, according to the partnering companies. 

The aims of the JV include accelerated delivery of existing hydrogen project pipeline and strengthened collaboration on other hydrogen production assets in the Nordic region. The JV's first investment is to acquire the HySynergy Phase 1 20 MW green hydrogen production plant in Fredericia, Denmark that is set to commence commercial operations in second quarter of 2023. 

HySynergy will also offer a competitive supply of green hydrogen as zero-emission fuel for clean mobility, according to Everfuel. In December 2022, HySynergy Phase 2, 300 MW, green hydrogen plant was granted IPCEI funding of EUR 33.1 million to support the construction of the first of three 100 MW electrolysers.

Jacob Krogsgaard, the founder and CEO of Everfuel, said, "This is a major step towards making green hydrogen commercially available through an accelerated deployment of our hydrogen hubs. Hy24 is a leading global hydrogen infrastructure investor and the ideal partner and co-investor for us as the number one developer of electrolyser capacity in Europe. Together we can develop green hydrogen infrastructure needed to serve rapidly growing demand from industry and mobility across our core Nordic markets, and firmly move into the ramp-up phase of our long-term plan for growth and value creation."

Pierre-Etienne Franc, co-founder and CEO of Hy24, added, "We launched Hy24 and the Clean Hydrogen Infrastructure Fund to help hydrogen leaders and entrepreneurs accelerate the scale-up of their projects, and to unlock the potential for the decarbonisation of hard-to-abate sectors. Everfuel is one of the most advanced project developers with a broad knowledge of hydrogen technologies, markets, and business models in the Nordics. It is therefore the natural partner for fast and wise developments."

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The purchase price paid by the JV to Everfuel for the acquisition of HySynergy Phase 1 is estimated at € 28 million. With the transfer of HySynergy Phase 1 to the JV, Everfuel will repay the outstanding € 10 million loan provided by the European Investment Bank. 

Hy24, on the other hand, will also provide a bridge loan of € 15 million to JV that is expected to be replaced with a larger facility from external debt providers as HySynergy Phase 2 is matured. Everfuel holds an option to purchase Hy24's shares in the JV at a pre-agreed return within a specified time period, according to the company.