(Alliance News) — Octopus Renewables Infrastructure Trust PLC announced Thursday that it will invest in a green hydrogen joint venture.
The London investment firm, which focuses on power generation assets, said it would invest up to £5.0m in Hyro Energy Ltd.
Hyro is a new joint venture between Octopus, Sky and Renewable Energy Systems set up to develop green hydrogen electrolysis projects for industrial use in the UK.
Octopus and Sky invest on the same terms and each own 25% of Hyro. The companies also have exclusive rights to provide further development funding after the initial £5.0m deal.
According to Octopus, Hyro aims to develop approximately 700 MW of green hydrogen electrolyser capacity by 2030. The strategy is in line with UK plans to reduce carbon emissions.
The UK government has selected Hyro’s three primary pipeline projects, totaling approximately 30 MW of electrolyser capacity, for the first round of allocations to receive continued revenue support under its hydrogen production business model. The Department of Energy Security and Net Zero will award contracts for successful projects in the fourth quarter of 2023.
Octopus Chairman Phil Austin said: “This partnership with veteran renewable energy company Renewable Energy Systems is our first investment in the green hydrogen sector – an exciting, vibrant and fast-growing part of the net zero economy. It adds further technological diversity and provides the ability to contribute “The investment represents Orit’s fourth investment in developers and provides greater value for future expansion of our private pipeline.”
Shares were up 1.1% Thursday morning in London at 99.17p.
Written by Sabrina Penty; Alliance News reporter
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