Investment firm Hy24 and Denmark’s Everfuel have formed a €200mn ($212mn) joint venture (JV) to accelerate hydrogen projects in the Nordic countries. Everfuel will own 51pc of the JV and the Hy24-managed Clean H2 Infra Fund will own 49pc.

The JV will acquire Everfuel’s 20MW Hysynergy Phase 1 plant in Denmark for “a purchase price reflecting costs incurred at signing… subject to adjustment for additional costs incurred up until closing”. This is estimated at €28mn, with Everfuel also due to repay an outstanding €10mn loan from the European Investment Bank.

Hysynergy Phase 1 is expected to begin operations in Q2 this year, with offtake from the adjacent Crossbridge Energy Refinery.

Hy24 will provide the JV with a €15mn bridge loan, expected to be replaced with a larger facility from external debt providers as it progresses the development of Hysynergy’s 300MW second phase. Hysynergy Phase 2 was granted EU Important Projects of Common European Interest funding of €33.1mn to support the construction of its three 100MW electrolysers.

Q2 2023 – Hysynergy Phase 1 due to begin operations

“We launched Hy24 and the [Clean H2 Infra 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,” says Hy24 CEO Pierre-Etienne Franc.

“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,” he adds. The fund has committed to participating in a potential future capital raise for Everfuel as part of the JV agreement.

Everfuel retains an option to purchase Hy24’s shares in the JV at a pre-agreed return within a specified time period.

Under the agreement, the JV will pay Everfuel fees throughout project development, construction and operation. The Danish parent company will also be entitled to development fees from the JV for projects reaching FID based on the return profile of each specific project, and retains exclusive rights to market merchant hydrogen volumes from electrolysers owned and operated by the JV.

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Author: Polly Martin