HY24: Ardian cooperates with Five T Hydrogen for clean hydrogen infrastructure
Paris / Zurich — The infrastructure division of Ardian, one of the world’s leading independent investment firms, and FiveT Hydrogen, an investment platform specializing in clean hydrogen, have jointly launched Hy24, www.hy24partners.com. As the world’s largest clean hydrogen infrastructure investment platform, Hy24, a joint venture company owned 50/50 by the two partners, will invest in projects critical to global decarbonization.
Hy24 is targeting €1.5 billion for its first fund, making the platform the manager of the industry’s largest clean hydrogen infrastructure fund. The fund already has commitments of €800 million from a number of leading industrial and financial investors, all of whom are already involved in clean hydrogen. The initiative for the fund can be traced back to two investor groups:
Air Liquide, TotalEnergies and VINCI Concessions are committed to the development of low-carbon and renewable hydrogen and have each pledged €100 million in funding as anchor investors.
Plug Power, Chart Industries and Baker Hughes, FiveT’s founding investors, will also support the new fund as anchor investors.
In addition, the major South Korean group Lotte Chemical and AXA, one of the world’s leading institutional investors, will invest in the new fund as anchor investors. Other major international industrial groups with extensive commitments to carbon neutrality also plan to participate in the initiative. So far, these include Groupe ADP, Ballard, EDF and Schaeffler — with other partners expected to join shortly.
The international selection process under which Hy24 was chosen as the investment vehicle and the engagement of industrial investors was led by Société Générale.
Hy24 plans to bring together more international institutional investors and industry players to fund hydrogen projects around the world on a large scale.
Hy24 combines Ardian’s proven infrastructure investment expertise and asset management capabilities with FiveT Hydrogen’s extensive access and experience in the hydrogen value chain. This combination creates the largest and most convincing partner for energy companies and investors who want to contribute to the expansion of the hydrogen infrastructure. It also responds to the enormous demand from governments, companies and investors who want to support global climate targets with their investments in hydrogen. Recent analyses show that by 2050, up to 100 trillion people will have to live on the streets. US dollars of investment in hydrogen will be required to achieve greenhouse gas neutrality.
Hy24’s first fund is launched under Article 9 of the Sustainable Finance Disclosure Regulation (“SFDR”) as an impact fund with the aim of reducing global carbon emissions. It will scale proven technologies into mature infrastructure assets that generate predictable cash flows and offer investors exclusive access to a new asset class with the potential to grow at a pace comparable to renewable energy. The portfolio will be diversified across different regions (Europe, Americas and Asia) and across the value chain: from upstream projects such as green hydrogen production to downstream projects such as vehicle fleet and refueling stations. The value creation opportunities are significant and include both job creation and decarbonization — especially in sectors where progress has been slow.
Mathias Burghardt, Head of Ardian Infrastructure and Member of Ardian’s Executive Committee, said: “We are proud to have been selected by some of the world’s leading industrial companies and investors to lead this initiative. The European Union has only recently announced the strengthening of its efforts to achieve climate goals. Just before the start of the UN Climate Change Conference in 2021, it is a great responsibility to lead such a platform. In the field of renewable energies, we are one of the investors from the very beginning. Today, our platform has a capacity of 7.5 GW for heat and renewables. We expect a similarly promising development in the hydrogen sector. Moreover, the joint venture is exactly in line with Ardian Infrastructure’s way of working. We are confident that Hy24 will play a leading role in accelerating hydrogen deployment, as building hydrogen capacity is critical to decarbonizing our economies.”
Pierre-Etienne Franc, co-founder and CEO of FiveT Hydrogen, said, “This is a major step forward for FiveT Hydrogen. Through this unique partnership, we expect to mobilize €15 billion in investments that will serve as a catalyst for the rapid expansion of the industry. The world urgently needs to accelerate the energy transition and reduce carbon emissions, including in energy-intensive, hard-to-contain sectors like transportation and industrial production.”
Hy24’s Board of Directors consists of Laurent Fayollas (President), Pierre-Etienne Franc (CEO), Amir Sharifi (Chief Investment Officer), Nicolas Brahy (General Counsel, Public Affairs and ESG Director) and Sébastien Paillat (Managing Director, Investments). A recruitment process is currently underway to build a dedicated global team that will operate in France, Switzerland, the US and Singapore.
The Hy24 joint venture was established jointly by Ardian and FiveT Hydrogen as the first major global investment platform focused exclusively on hydrogen infrastructure. It grew out of an initiative launched by leading industrial companies: Air Liquide, TotalEnergies, VINCI Concessions, Plug Power, Baker Hughes, Chart Industries and AXA, a leading institutional investor.
The new investment platform combines extensive industrial expertise with the ability to accelerate the scaling of hydrogen solutions along the entire value chain. These include production, conversion, storage, supply and use. HY24 will support large early-stage projects as well as strategic projects to become major energy infrastructures. hy24partners.com
Ardian is one of the world’s leading independent investment firms, managing over US$114 billion in assets for its investors from Europe, South and North America and Asia. The company is majority-owned by its employees and generates sustainable, attractive returns for its investors. With the objective of achieving positive results for all stakeholders, Ardian’s activities promote individuals, companies and economies worldwide. Ardian’s investment philosophy is aligned with the three guiding principles of excellence, loyalty and entrepreneurship.
The company has a global network of more than 750 employees and 15 offices in Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), South America (Santiago de Chile), North America (New York and San Francisco) and Asia (Beijing, Seoul, Singapore and Tokyo). Ardian manages the assets of its more than 1,200 investors in five investment areas: Direct Funds, Funds of Funds, Infrastructure, Private Debt and Real Estate. www.ardian.com