Singapore-based Lanxing New Energy has secured a 36% stake in Scottish hydrogen firm Logan Energy.
Logan did not disclose the amount paid by green energy investment company Lanxing, but it came as part of an overall £5 million investment announced today.
Logan said more than 50% of that figure came from Lanxing, while Scottish Enterprise provided the remainder.
Lanxing New Energy was established in Singapore in 2023, but it is unclear whether the company is ultimately a subsidiary of Chinese manufacturer Henan Lanxing Power Equipment Co.
Henan Lanxing set up a joint venture with Logan Energy in 2020 to explore opportunities in the Chinese market.
A spokesperson for Logan Energy told Energy Voice that Lanxing New Energy has “multiple shareholders, one of whom is Lanxing Power Equipment Co”.
Current Logan Energy chief executive Bill Ireland will retain overall control of the company.
© Supplied by Hot Tin RoofInvestment to further international expansion
Logan Energy said the funding will help to develop its technology base and facilities, grow its workforce within the hydrogen sector in Edinburgh and further efforts to expand internationally.
The hydrogen technology specialist provides refuelling, storage, distribution, and fuel cell solutions and maintains development facilities at Heriot-Watt University in Edinburgh.
In recent years, Logan has worked on hydrogen projects ranging from portside hydrogen refuelling stations to a £3 million project aimed at decarbonising an Angus whisky distillery.
The Scottish firm has also worked on several international projects, including in the Netherlands, Northern Ireland, Ireland, Spain, Singapore and Germany in addition to its China joint venture and a separate partnership with Norwegian firm Moreld.
Logan Energy ‘best in class’
Logan Energy chief executive Bill Ireland said the £5 million investment will secure the company’s position as an “industry leader”.
“We have been working in the hydrogen sector for decades and see the energy market focussing on how hydrogen fits within the increasingly complex energy mix,” he said.
Mr Ireland said the investment will also allow the company to address supply chain issues by helping to develop key relationships with global equipment manufacturers and developers, as well as ramping up research and development capabilities in the UK.
Lanxing New Energy chief executive Dr Yuxuan Zhang said the progress made by Logan Energy in the UK and European hydrogen market was impressive and said the company was “best in class”.
© Supplied by Hot Tin Roof“We are clear that energy systems involving hydrogen have a vital part to play in the transition to a low carbon economy across the world.
“For us, it has been about finding the best partner to understand the complexities of integrated energy systems and develop advanced hydrogen technologies.
“Over the coming months we aim to announce several new capabilities for the hydrogen market as we further develop Logan’s strategic plan.”
Dr Zhang has previously worked with Henan Lanxing Power Equipment Co. and Kelvin Capital and joined the board of Logan Energy in 2020 as China business development director after the companies formed a joint venture.
Scottish Enterprise chief executive Adrian Gillespie said Logan Energy is “pushing to the forefront” of the hydrogen sector.
“With hydrogen as one of the transformational opportunities Scottish Enterprise is targeting as part of our future focus, Logan is a perfect fit for us to partner with in this investment,” he said.
Hydrogen opportunities
The UK hydrogen industry is facing a “critical period” in 2024 as the nascent sector strives to prove its viability in the face of international competition.
Both the UK and Scottish Governments have declared ambitious targets for hydrogen production, with plans underway to turn Scotland into a major exporter of the green fuel.
In Scotland, the Government is making available £100m in capital funding for renewable hydrogen projects, with funding for the first tranche announced last year.
© Supplied by NZTCHowever, industry analysts have warned vague policy goals risk hampering UK hydrogen projects. with increasing competition from the US and EU.
Meanwhile the UK government aims to deliver up to 10GW of low carbon hydrogen production capacity by 2030, with at least 1GW of electrolytic hydrogen in operation or construction by 2025.
In December last year, the UK government unveiled 11 green hydrogen projects set to benefit from £2 billion in government funding.
A report by Grand View Research estimated the global hydrogen generation market size at around £134 billion in 2023, forecasting a compound annual growth rate of 9.3% from 2024 to 2030.
Recommended for you
