Maersk Parent AP Moller Holding Invests in Green Hydrogen Systems

Moller invests in green hydrogen
(file photo)

Published Dec 23, 2020 8:40 PM by The Maritime Executive

A.P. Moller Holding, the private investment company that is the parent of the Moller Group and the Maersk shipping and logistics company, is making a significant investment in the green hydrogen sector as the shipping industry looks towards the future and new environmental solutions. Moller is taking the lead in a new round of funding to Green Hydrogen Systems, a Danish company working to scale up its electrolyzer technology.

Under the terms of the agreement, Moller is investing approximately $25 million in Green Hydrogen Systems in the form of a convertible loan. They will also will have the right to appoint one member to the board of directors of the company, which was founded in 2007.

“We see hydrogen as an important part of the future green energy mix for industry, shipping and heavy transport,” said Jan T. Nielsen, CIO of A. P. Moller Holding. “Green Hydrogen Systems has a compelling technology platform for electrolytic hydrogen production based on green energy and we are excited to support them in developing this platform further.”

In addition to Moller, two other funds that are current investors have also agreed to increase their positions. Nordic Alpha Partners, the major shareholder of Green Hydrogen Systems, agreed to invest an additional approximately $8.5 million, and current shareholder Norlys Holding will invest an additional $1.2 million in the company. The total investment comes to more than $34 million raised in this round of financing.

The company said that it will use the new investments to meet the accelerating demand for electrolyzer capacity. The ongoing scale-up implies investment in larger facilities and a larger organization with added resources and competencies along the full value chain of the company, i.e. R&D, sales, manufacturing, and assembly, commissioning and after-sales service, they noted.

“There is an unprecedented momentum in the market for green hydrogen supported by industrial demand and political decisions to sharply increase installed hydrogen capacity in the coming years,” said Sebastian Koks Andreassen, CEO of Green Hydrogen Systems. “The additional funds enable us to scale-up our existing production facilities to meet the surging demand. The investment from A. P. Moller Holding is a vote of confidence in our company and the incredible market potential we are looking into.”

The company points to the EU’s recently announced ambitious hydrogen strategy as a demonstration of the coming opportunities. They highlighted that the EU is targeting 6 GW of installed capacity by 2024 and 40 GW by 2030. That compares with the approximately 300 MW of installed hydrogen capacity today. In addition to this, Germany, the Netherlands, France, Portugal and Norway have established ambitious national strategies for green hydrogen production.

Troels Øberg, Partner at Nordic Alpha Partners added: “Green Hydrogen Systems is very well positioned to become a leading supplier in this fast-growing green hydrogen market. It requires significant investments to unfold the full potential, and therefore an IPO of Green Hydrogen Systems could be the next step on the funding journey. So far, we are very pleased that a qualified and reputable investor as A.P. Moller Holding has decided to become a key partner in taking Green Hydrogen Systems to the next level.”

Green Hydrogen Systems is recognized for its pioneering wind-to-hydrogen projects in Denmark in cooperation with leading wind energy players. It is forecast that its products will play a key role in decarbonizing energy systems in the coming years.