Image: Friedrich Vorwerk
German energy infrastructure firm Friedrich Vorwerk announced its intention to float its shares on the Frankfurt Stock Exchange in the first quarter of 2021, Reuters reported.
The company aims to accumulate substantial investments of up to €90 million ($107 million) from newly issued shares, as well as shares from existing owners to accelerate the clean energy transition. This decision has been heavily influenced by continuous interest in the booming hydrogen market.
The company, a subsidiary of industrial firm MBB, is a leading provider of energy transportation and transformation infrastructure for the gas, electricity, and hydrogen markets. In 2020 it reported revenue of €291 million. Although Vorwerk declined to disclose the company valuation, sources close to the deal said the listing could value it at up to €1 billion, according to Reuters.
Climate action is one of the top priorities for the EU in line with its goal to become the first climate-neutral continent by 2050. The ambitious aim requires a drastic European energy transformation. After the body’s European Hydrogen Strategy highlighted hydrogen as the top investment priority, various stakeholders across industries have started launching large-scale projects.
Germany has long been a pioneer in the clean energy transition: over the past 40 years, Germany’s energy supply has moved from a dominance of coal and oil to a visible diversification to renewables. Coal, the biggest current source of electricity, is also projected to be phased out by 2038 in line with Germany’s goal to decarbonise the economy. The country is also phasing out nuclear power following the Fukushima tragedy.
In June 2020, Germany approved a €9 billion National Hydrogen Strategy. As a result, the hydrogen market is experiencing unprecedented growth in Germany and across Europe.