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Highlights
- Ineos, the largest hydrogen producer in EU announced its plans to invest US$ 2.3 billion into green hydrogen electrolysis plants in the EU.
- The company plans to build a 20 MW electrolyser in Norway first and a second larger 100 MW in Germany.
Europe’s largest hydrogen producer, Ineos, said today that it plans to invest over EUR 2 billion or US$2.3 billion in electrolysis plants to manufacture green hydrogen across the EU.
The company plans to build a 20 MW electrolyser in Norway first and a second larger 100 MW in Germany over the span of the next decade. The company also aims to build plants in Belgium, France and the UK
Green hydrogen involves the splitting of water into hydrogen and oxygen and is considered a clean source of energy, but currently has a higher cost associated with it when compared to other types of hydrogen such as blue, grey or brown hydrogen.
The EU has earlier stated its plans to increase its electrolysers capacity to 40 GW in this decade, compared to its current capacity of less than 0.1 GW.
The move is part of the EU’s plans to use hydrogen as a key energy source to become net-zero by 2050. The news also comes ahead of the UN climate summit, COP26, which is set to begin from 31 October.
Also, INEOS said in September that it aims to spend over £1 billion to convert its Scotland based oil refinery at Grangemouth to be powered by hydrogen as part of its commitment to be net-zero by 2045.
Let us take a look at the investment prospects of 2 FTSE listed green hydrogen focused stocks:
- ITM Power PLC (LON: ITM)
FTSE AIM UK 50 index listed firm, ITM Power is an electrolyser maker which is used for green hydrogen.
The company recently raised £250 million in gross proceeds from an oversubscribed share placement from 57.5 million new shares via an accelerated bookbuild.
The shares for the placing was at a price of GBX 400 per share. The capital raising is intended to help increase ITM’s electrolyser manufacturing capacity to 5GW by 2024.
ITM’s shares were trading at GBX 462.20, up by 2.44 per cent on 18 October at 10:11 AM BST. Whereas the FTSE AIM UK 50 index was at 6,659.16, up by 0.69 per cent.
The company has a market cap of £2,484.57 million and a one-year return of 68.40 per cent as of 18 October 2021.
- Hydrogenone Capital Growth PLC (LON:HGEN)
Main market listed firm Hydrogenone Capital Growth is a clean hydrogen and energy storage focused investment company. The company was admitted to the LSE earlier this year, on 30 July, making it the first LSE listed hydrogen fund.
The company reported on Monday its first private equity investment into leading electrolyser producer Sunfire GmbH in a deal worth up to EUR 24 million.
As per the deal, it would grant Hydrogenone a minority stake in to Sunfire and also let the hydrogen fund collaborate with Sunfire for future hydrogen manufacturing projects.
Hydrogenone’s shares were trading at GBX 110.60, up by 1.47 per cent on 18 October at 10:52 AM BST. Whereas the energy sectoral index was at 6,268.93, down by 0.42 per cent.
The company has a market cap of £117.01 million as of 18 October 2021.
