Hy2gen AG, a start-up from the Stuttgart region created to build green hydrogen production facilities, has completed a further financing round. Trafigura, a market leader in the global commodities industry has become a shareholder and joined the board of the company. The new investment will enhance Hy2gen AG’s business development capabilities and support the development of new production sites.
Hy2gen AG brings together specialists with experience of developing, building and operating plants for the production of green hydrogen and hydrogen-based e-fuels, offering better ways to achieve CO2-free or CO2-neutral fuels and storage solutions. The first plants will be built in Canada in 2020, to be followed by other plants in France, Mexico, Norway and South Africa.
The company aims to become a leader in the hydrogen and e-fuels market for mobility and industry, areas where it is currently proving difficult to significantly reduce emissions. Hy2gen AG already has a project pipeline for over 500 megawatts of electrolyser capacity (74,000 tonnes of CO2-free hydrogen per year from renewable energies or, in other words, an annual saving of 810,000 tonnes of CO2 in comparison with the conventional production of hydrogen). As of today, no hydrogen producer has reached this scale.
“We are focusing on large-scale production facilities as price is an important factor for green hydrogen to become a tradable commodity. As this happens, we will be well positioned to grow quickly alongside anticipated commercial demand,” says Cyril Dufau-Sansot, Hy2gen CEO.
“Trafigura welcomed the opportunity to become a shareholder in Hy2gen, its first investment in the hydrogen industry. We see the opportunity in working in this high potential alternative fuels market with a dynamic start-up team,” comments Robert Gillon, Senior Manager from Trafigura’s newly created Power and Renewables Trading Division.
As hydrogen and hydrogen-based products can be used across many other sectors beyond mobility and industry, Trafigura and Hy2gen AG will further identify possible areas of collaboration in the coming months.