A unique private infrastructure fund aiming to act as a catalyst in the scaling of the global hydrogen economy has been launched today (8th April) by a team of world-class hydrogen and financial executives.
Led by former Hydrogen Council co-secretary Pierre-Etienne Franc, the FiveT Hydrogen Fund aims to raise €1bn ($1.1bn) and is dedicated to delivering clean hydrogen infrastructure projects at scale.
With national decarbonisation strategies already adopting hydrogen as an integral role in the process of achieving net-zero emissions, the Fund is part of FiveT Hydrogen’s broader ambition to establish an investment platform focused on accelerating the hydrogen economy.
By serving as a catalyst to scale the hydrogen market, the Fund’s initial priority is to develop infrastructure and then extend its investment strategy into hydrogen-related technologies and companies.
“We firmly believe that clean hydrogen, an energy carrier created from low-carbon sources, will help transform and decarbonise the world’s economy, addressing the global climate emergency and making a positive change to our planet for future generations,” Pierre-Etienne Franc, co-founder and CEO of FiveT Hydrogen, said.
“The Fund will serve as a catalyst for both the financing and building of global hydrogen infrastructure projects. We believe it creates the right investment platform to support existing and future hydrogen initiatives.
“The value-creation opportunity is huge. We want to deliver hydrogen energy infrastructure at scale and at pace. We will partner with the primary financial and strategic hydrogen players to do that.”
Franc continued, “Being a first mover in the market means that our fund will have the agility and flexibility to identify the right projects and invest in the most compelling infrastructure assets of the future.
“This is expected to unlock superior, risk-adjusted returns for our investors.”
Backed by established alternative asset manager FiveT Capital Holding, the Fund said it
will look to make co-investments into greenfield projects with key industrial players.
This could see investment opportunities across the value chain, including green hydrogen production and use and downstream distribution assets to the transport segment and associated fleet development schemes.
The Fund has already received combined commitments intentions of €260m ($309m) from Plug Power, Chart Industries and Baker Hughes.
In addition, Francisco Fernandez, an accomplished serial entrepreneur, founder and former CEO of Avaloq, and a shareholder and member of the Board of Directors of FiveT Capital, is committing €30m ($35m).
This commitment is part of a global FiveT Capital contribution to the Fund expected to reach up to 5% of the final Fund size.
It is expected that this new fund will play a major role in the decarbonisation of the global economy with the Fund’s first closing expected in the fourth quarter of 2021, with first cash contributed by investors by early 2022 and drawn as required for investment over several years.
H2 View is set to get the inside track on FiveT Hydrogen from Pierre-Etienne Franc in an exclusive interview coming soon.