Equity Participation in Clean H2 Infra Fund managed by Hy24 Globally Investing in Clean Hydrogen-Related Projects under GREEN Operations
Contributing toward Realization of Decarbonized Society through investments in Hydrogen Value Chain
- Region: Others
- Equity Participations
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on March 3 an agreement for equity participation in the Clean H2 Infra Fund S.L.P. (the Fund) of France. The Fund is targeting EUR1,500 million, toward which JBIC plans to invest up to EUR100 million.
The Fund is managed by Hy24, which is an equally-owned joint venture by FiveT Hydrogen AG, an investment manager specialising purely in clean hydrogen investments, and Ardian, a world-leading private investment house, via its infrastructure activity. The Fund will invest in clean hydrogen-related projects around the world, from upstream projects like green hydrogen production to downstream projects like captive fleet and refueling stations. JBIC participates in the Fund under its GREEN operations*1
. The policy of the Fund is to invest in hydrogen-related projects that conform to one of the six environmental objectives of the EU taxonomy, “Climate change mitigation”, and the Fund will have sustainable investment as its objective in accordance with Article 9 of the SFDR regulation*2
Pierre-Etienne Franc, Hy24’s CEO stated: “Hy24 team is pleased to welcome JBIC among the LPs of the Clean H2 Infra Fund. Hy24's investment strategy is to deploy capital into clean hydrogen-based projects, particularly in the most advanced regions in the world. Japan is fully committed to establish a hydrogen society. Being able to work with JBIC will be a major asset for the team.”
Recently, many countries and regions focus on hydrogen as an essential energy source for global decarbonization, and the demand for financing for hydrogen-related projects is growing. The Clean H2 Infra Fund is the world’s largest clean hydrogen infrastructure investment fund and has already been committed to by a leading group of industrial and financial investors active in clean hydrogen sector such as Air Liquide, TotalEnergies, VINCI Concessions, Plug Power, Baker Hughes, Chart Industries, AXA, CCR, LOTTE Chemicals, Snam, Enagas, GRTgaz, ADP, Ballard, EDF and Schaeffler. The Fund intends to unlock strategic and large-scale projects under development to accelerate the scaling up of hydrogen markets. JBIC’s equity participation is expected to contribute toward reducing carbon emission through the efforts of the Fund.
Hydrogen, which does not emit CO2 when used as a fuel, is drawing attention as the energy solution of the future. With “Basic Hydrogen Strategy” formulated in December 2017 and “Green Growth Strategy Through Achieving Carbon Neutrality in 2050” formulated in December 2020 (updated in June 2021), the Government of Japan calls for international cooperation in social implementation of hydrogen. The Fund is in line with the hydrogen-related policies of the Government of Japan.
As Japan’s policy-based financial institution, JBIC will continue to support global environmental preservation efforts by drawing on its various financial facilities including its equity participation function.
The SFDR (Sustainable Finance Disclosure Regulation) was enacted by the European Union with the aim of achieving more transparency of sustainability characteristics of financial products including funds. Funds fall into three taxonomic groups based on Article 6, Article 8, and Article 9 of the SFDR. Article 9 Funds, to whom the applicable disclosure requirements are the most rigorous, have sustainable investment as their objective and measure how much the objective is attained based on a quantitative benchmark.