Chart Industries has reaffirmed its strong commitment in the hydrogen sector, having today (September 8) acquired a 25% stake in Hydrogen Technology & Energy Corporation (HTEC).
The acquisition follows an initial announcement completed in December (2020), through which the US-based cryogenic equipment manufacturer acquired 15% of HTEC, a Canadian hydrogen technology and station developer.
As part of the expanded ownership, Chart partnered with I Squared Capital, an independent global infrastructure investment manager focusing on clean energies, which acquired 35% of HTEC’s capital stock.
Together, Chart and I Squared Capital own 60% of HTEC.
In addition to placing Chart and I Squared Capital at the heart of the Canadian hydrogen market, the acquisition also provides HTEC with significant capital to pursue new green hydrogen production projects and expand its hydrogen station portfolio.
On the transaction, Jill Evanko, Chart’s CEO and President, said, “Our increased investment in HTEC and partnership with I Squared Capital is highly strategic.”
“It capitalises HTEC well to address near term opportunities where Chart can benefit as a core supply partner, while also providing flexibility to further consolidate our ownership position in a high-growth hydrogen business with a significant Canadian presence and customer base.”
As well as extending its ownership of HTEC, Chart and HTEC’s existing binding commercial Memorandum of Understanding (MoU) remains in place and has now been approved by I Squared Capital.
The MoU sees Chart supply HTEC with its hydrogen equipment. Opening doors to HTEC’s strong customer base, including Shell, 7 Eleven, Toyota and Hyundai, along with solid relationships with Canadian governments, the MoU and investment helps to expand Chart’s equipment presence.
Colin Armstrong, HTEC’s President and CEO, said, “This additional vote of confidence from Chart and new investment from I Squared Capital gives HTEC the funding and partnerships necessary to accelerate our development of low carbon hydrogen solutions, which are crucial to rapidly hit global net-zero targets.”
Thomas Lefebvre, Partner at I Squared Capital, concluded, “I Squared Capital has tracked the growth of hydrogen in North America for some time and is excited to partner with two industry leading companies in HTEC and Chart in a sector that is so vital for the energy transition revolution.”