Air Liquide, TotalEnergies and VINCI are joining forces with other major international companies to sponsor the creation of the world’s largest fund dedicated exclusively to clean hydrogen infrastructure solutions. The fund aims to reach €1.5 billion and has already secured initial commitments of €800 million. It aims to accelerate the growth of the clean hydrogen ecosystem by investing in large strategic projects and leveraging the partnership of industrial and financial players.
The clean hydrogen infrastructure fund will invest across the entire renewable and low-carbon hydrogen value chain in the most promising regions of the Americas, Asia and Europe. It will invest as a partner, together with other key project developers and/or industry players, in large hydrogen projects. Total commitments to the fund have already reached €800 million out of a target of around €1.5 billion at signing.
Air Liquide, TotalEnergies and VINCI Concessions have been at the forefront in establishing and adding commitments to this clean hydrogen infrastructure fund. As anchor partners, fully committed to the development of renewable and low-carbon hydrogen, each has pledged to invest €100 million.
The fund will be managed by Hy24, a new 50/50 joint venture between Ardian, a leading global private investment house, and FiveT Hydrogen, an investment platform promoting clean hydrogen. The choice of this fund manager allows it to merge with its similar initiative and add Plug Power as an anchor partner, as well as the merger of Chart Industries and Baker Hughes.
the merger of Chart Industries and Baker Hughes.
LOTTE Chemical has also confirmed its intention to participate as an anchor investor and is the first Asian company to join. The fund hopes to attract further investments from large financial players, with AXA as anchor investor. Large international industrial players from North America and Europe, who are strongly committed to carbon neutrality, also intend to join the initiative as non-anchor partners, such as Groupe ADP, Ballard, EDF and Schaeffler.
With strong industrial expertise and significant investment potential, the clean hydrogen infrastructure fund will have a unique ability to unlock large-scale projects under development and accelerate the expansion of hydrogen markets. With announced public policy support and some use of debt financing, the fund should be able to contribute to the development of hydrogen projects with a total value of around 15 billion euros.
VINCI, a global player in concessions, construction and energy, present in some 100 countries, is actively committed to Zero Net Emission through the implementation of an ambitious environmental policy. Its mission is to design, finance, build and operate infrastructure and facilities that contribute to improving the daily lives and mobility of
everyone. Xavier Huillard, Chairman and CEO of VINCI, stated, “VINCI is taking concrete action to support the development of clean energy by mobilizing all of its divisions in concessions, construction and energy, with the aim of actively combating climate change and decarbonizing mobility in particular. With the launch of this investment fund today, hand in hand with other major industry leaders, we continue to move forward to make the
industry leaders, we continue to move forward to make green hydrogen a strong lever to achieve our goals.”
As a hydrogen pioneer for more than 50 years, Air Liquide is convinced that hydrogen is a cornerstone of the energy transition. The Group is bringing its unique expertise along the entire value chain, using hydrogen as a clean energy carrier for industrial processes and clean mobility. Benoît Potier,
chairman and chief executive officer of Air Liquide, said: “Hydrogen has become a central element of the energy transition. The time to act is now, not only as independent companies, but by joining forces with states, other industrial groups and the financial community. With the creation of this fund, we are demonstrating our leadership to engage in a collective dynamic for the energy transition.
leadership to engage in a collective dynamic to generate momentum.
As Air Liquide, we have already committed to invest approximately €8 billion in the low-carbon hydrogen supply chain by 2035. Our objective is to contribute to the development of the entire value chain, from low-carbon hydrogen production to end uses, by investing in the necessary infrastructure with storage and distribution projects. Accelerating hydrogen development is key to climate change mitigation.
TotalEnergies’ ambition is to be a world-class player in the energy transition and to achieve carbon neutrality (net zero emissions) by 2050, from production to use of energy products sold to its customers (scopes 1, 2, 3), together with society. Patrick Pouyanné, president and CEO of TotalEnergies, commented: “We believe that clean, renewable hydrogen will play a key role in the energy transition, and TotalEnergies wants to pioneer its mass production.
We are currently working on several projects, in particular to decarbonize the gray hydrogen used in our European refineries by 2030. We are convinced that a collective effort is needed to kick-start the hydrogen sector and bring it to scale, which is why we are proud to launch and invest in the clean hydrogen infrastructure fund, which will also provide us with a privileged view of the
sector.
The hydrogen economy is expected to be key in the fight against climate change.
Many countries have initiated hydrogen-related regulations and support schemes to enable clean hydrogen to help decarbonize their economies. Hydrogen offers a solution to decarbonize industrial processes and the mobility sector.
mobility sector.
Subject to Hy24’s French Market Authority (AMF) accreditation as an Alternative Investment Fund Manager (AIFM), the platform will be operational by the end of 2021 and the first closing is expected before the end of the year.
About VINCI
VINCI is a global player in concessions and contracts, employing 222,000 people in some 100 countries. We design, finance, build and operate infrastructure and facilities that help improve daily life and mobility for all. Because we believe in overall performance beyond economic and financial results, we are committed to operating in an environmentally and socially responsible manner. And because our projects are in the public interest, we believe that reaching out to and engaging in dialogue with all our stakeholders is essential in the conduct of our business activities. VINCI’s goal is to create long-term value for its customers, shareholders, employees, partners and society at large.
