Green Hydrogen Systems intends to raise 1 billion Danish krone ($164 million) to support growth as a provider of modularized and standardized electrolysers, according to a statement.
“Proceeds from the IPO will enable us to continue to scale our production facilities and organisation, and to accelerate R&D efforts in order to further reduce costs of green hydrogen and make it a compelling energy carrier of the future.” Sebastian Koks Andreassen, CEO of Green Hydrogen Systems
The Danish company sees its overall valuation at approximately DKK 2 billion ($328 million), according to the release.
Shareholders Nordic Alpha Partners and Norlys Holding as well as A.P.Møller Holding are converting a loan to Green Hydrogen Systems into shares prior to listing. After which, A.P.Moller Holding will own 17.81%, Nordic Alpha Partners 50.29% and Norlys Holding 14.99% previous to the IPO on a non-diluted basis.
Funds will be enough to produce X-Series electrolysers, which produce hydrogen, and potentially cover the capital needs to continue growth through the end of 2025. Green Hydrogen Systems seeks to reach a revenue from contracts with customers of more than DKK 1,000 million in 2025.
European Green Deal
The European Green Deal hydrogen strategy targets 6 GW of installed electrolysis capacity for green hydrogen production by 2024 and 40 GW by 2030, compared to around 0.3 GW of installed capacity in the EU today. The EU estimates that reaching the hydrogen targets for 2030 will require investments in electrolyzers of between EUR 24-42 billion, according to the release.
Green hydrogen is an efficient, highly versatile and completely carbon neutral energy carrier. It can be used directly or indirectly in sectors which are otherwise hard to decarbonize, and it can be used to efficiently store and transport renewable energy. Demand for green hydrogen is surging, requiring a significant scale-up of electrolysis capacity.
Green Hydrogen Systems recently moved into a new combined manufacturing, R&D and office facility in Nordager, Kolding in Denmark. The 4,500 m2 facility with an expected production capacity of 75 MW per year by the end of 2021 completes the first phase of the Company’s expansion plan while a second expansion phase is already planned to increase capacity to 400 MW over the next years.
The Company expects to continue phased expansion up to a total area of 30,000 m2. A facility of such scale may be able to support a production capacity of more than 1,000 MW per year.
Read also about Snam’s plans to push for hydrogen.
