Denmark’s A.P. Moller Holding, a parent company of shipping major Maersk, has decided to invest in compatriot Green Hydrogen Systems, a supplier of modular electrolyzers producing green hydrogen from renewable energy.
As informed, A.P. Moller Holding will invest in Green Hydrogen Systems in the form of a convertible loan of EUR 20 million (around $24 million).
“We see hydrogen as an important part of the future green energy mix for industry, shipping and heavy transport,” Jan T. Nielsen, CIO, A. P. Moller Holding, commented.
“Green Hydrogen Systems has a compelling technology platform for electrolytic hydrogen production based on green energy and we are excited to support them in developing this platform further.”
As part of the agreement to invest, A. P. Moller Holding will have the right to appoint one member to the board of directors of Green Hydrogen Systems.
Apart from A.P. Moller Holding, Nordic Alpha Partners, the major shareholder of Green Hydrogen Systems, had agreed to invest an additional EUR 7 million in the company. What is more, current shareholder Norlys Holding will invest EUR 1 million.
These investments, totaling about EUR 28 million, will enable Green Hydrogen Systems to meet the accelerating demand for electrolyzer capacity. The ongoing scale-up implies investment in larger facilities and a larger organisation with added resources and competencies along the full value chain of the company, i.e. R&D, sales, manufacturing, and assembly, commissioning and after-sales service.
“There is an unprecedented momentum in the market for green hydrogen supported by industrial demand and political decisions to sharply increase installed hydrogen capacity in the coming years,” Sebastian Koks Andreassen, CEO at Green Hydrogen Systems, said.
“The additional funds enable us to scale-up our existing production facilities to meet the surging demand. The investment from A. P. Moller Holding is a vote of confidence in our company and the incredible market potential we are looking into.”
The EU recently announced an ambitious hydrogen strategy targeting 6 GW of installed capacity by 2024 and 40 GW by 2030 compared with the current around 300 MW installed hydrogen capacity today. In addition to this, Germany, the Netherlands, France, Portugal and Norway have established ambitious national strategies for green hydrogen production.
Green Hydrogen Systems is pioneering wind-to-hydrogen projects in Denmark in cooperation with wind energy players and is expecting its products to play a key role in decarbonizing energy systems.