Ineos-backed HydrogenOne Capital Growth has announced it will make an equity investment of £10m in ‘turquoise hydrogen’ technology developer HiiROC, as part of a major fundraising round.
HiiROC’s technology converts biomethane or natural gas into clean hydrogen and carbon black, through a proprietary electrolysis process using thermal plasma. The company says this results in “zero CO2 hydrogen production”, known as “turquoise hydrogen”, at a cost comparable to the steam methane reforming process, and only using only one fifth of the energy required by water electrolysis.
The solid carbon byproduct, carbon black, has applications ranging from tyres, building materials and as a soil enhancer.
With the purchase of a minority equity stake, HydrogenOne will also have rights to a board seat at HiiROC.
The investment forms part of a roughly £26 million fundraising round for HiiROC, and includes investments from Melrose Industries, Centrica, Hyundai and Kia, alongside existing strategic investors Wintershall Dea and VNG.
HiiROC says this system has strong potential for a range of sectors including grid injection, electricity generation, decarbonising industry replacing natural gas, flare mitigation and synthetic aviation fuel production.
Wintershall Dea and VNG have recently announced a 400kg per day hydrogen facility in Germany using HiiROC technology, due to be operational in 2023.
HydrogenOne Capital Growth (HGEN) was formed in July 2021, with the aim of raising £250million through an initial public offering (IPO) on the London Stock Exchange, including a £25 million investment by INEOS.
Including its HiiROC commitments, HydrogenOne says it has deployed around 10% of its assets under management in a portfolio of clean hydrogen listed equities, and approximately 40% of the net proceeds from its IPO.
The refining and chemicals company has emerged as a major proponent of hydrogen technologies, last month announcing plans to invest around £1.7 billion in green hydrogen production facilities across Europe.
HiiROC CEO Tim Davies said: “We welcome HydrogenOne as a sector specialist at this very exciting stage in our development, as we move towards the commercialistion of our leading technology to produce low-cost, zero emission hydrogen, delivered to customers on a modular, scalable basis at the point of demand.
“HiiROC’s technology is well positioned to contribute to accelerating the transition to the hydrogen economy and its role in achieving Net Zero.”