HH2E has entered a self-administration and sale process from which UK-based HydrogenOne is not expected to recover its investment.
After purchasing long lead-time equipment ahead of a final investment decision (FID) for its first project at Lubmin, north-east Germany, HH2E was seeking a bankable offtake agreement for the hydrogen production, as well as equity funding and bank debt for project construction.
The insolvency arose on 7 November when, following HH2E’s failure to secure additional investors, majority shareholder Foresight Group declined to approve further funding.
Several hydrogen production projects have been delayed and cancelled in 2024 against a backdrop of evolving regulations and a challenging funding environment. However, HydrogenOne’s board “believes that the investment fundamentals for the hydrogen sector remain positive”.
The International Energy Agency (IEA) estimates global green hydrogen capacity to reach 5GW this year, with a further 20GW having reached FID.
HydrogenOne highlighted a recent £6 billion commitment by the UK government to fund hydrogen and related projects, and approval by Germany’s federal network agency, the Bundesnetzagentur, of a 9,040km hydrogen network.
HydrogenOne currently has investments in six companies across the hydrogen industry, including electrolysis, fuel cell and transportation equipment.
It said it expects to have sufficient funding to meet its investment commitments and current working capital requirements for at least 12 months.
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