A new hydrogen investment fund called Hycap has raised £200mn ($277mn) of capital with the goal of eventually raising £1bn. The fund is backed by investment firm Vedra Partners and Jo Bamford, chairman of UK bus manufacturer Wrightbus.

The UK hydrogen sector needs a £1bn injection to help it compete with other territories, according to Bamford.

“It is our belief that hydrogen holds the key to reducing emissions—and there is a growing sense of urgency to act now,” he says.

“The UK has missed the boat on batteries, a sector dominated by China and the Far East, but we can be global leaders in the production and supply of hydrogen—an economy said to be worth $2.5tn in revenues by 2050.”

£1bn – Amount the fund hopes to raise

The Hycap team has already identified more than 40 firms in the hydrogen space that will be evaluated for investment. And the fund has already received significant interest from investors, according to Vedra founder Max Gottschalk.

“The fund will be investing across the entire value chain, focusing on production, manufacture and supply, in order to put the UK firmly on the map when it comes to hydrogen,” he says.

Dedicated hydrogen funds are starting to emerge as the sector picks up pace. The FiveT hydrogen fund launched earlier this year with €260mn ($308mn) seed funding and will see the capital being contributed by investors in early 2022. And HydrogenOne Capital—which is backed by chemicals group Ineos—listed on the London Stock Exchange in July with an IPO that raised gross proceeds of £107mn.

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Author: Tom Young