TIDMORIT
RNS Number : 5587V
Octopus Renewables Infra Trust PLC
06 April 2023
6 April 2023
LEI: 213800B81BFJKWM2JV13
Octopus Renewables Infrastructure Trust plc
("ORIT", the "Company")
Investment into Green Hydrogen Developer
Octopus Renewables Infrastructure Trust plc is pleased to
announce that it has agreed to invest up to GBP5m into HYRO Energy
Limited, ("HYRO") a new joint venture between ORIT (co-invested
alongside another fund managed by Octopus Energy Generation, Sky
(ORI SCSp)("Sky")) and Renewable Energy Systems ("RES"). HYRO has
been established to develop green hydrogen electrolysis projects in
England, Scotland and Wales for industrial offtake/consumption.
HYRO intends to develop c.700MW of green hydrogen electrolyser
capacity by 2030. HYRO will leverage the decades of renewable
development experience of RES and the investment capabilities of
ORIT and Sky, along with Octopus Energy Generation's strong
relationships with potential industrial end-users of the green
hydrogen, and their ability to supply green electricity. HYRO's
strategy is aligned with the UK's wider decarbonisation ambitions,
with the UK Government targeting the construction of 10 GW of low
carbon hydrogen capacity by 2030, with at least 5GW of that target
being green.
HYRO's three initial pipeline projects totalling c.30MW of
electrolyser capacity have been included on the UK Government's
shortlist for the first round of allocations to receive ongoing
revenue support under the Hydrogen Production Business Model, which
aims to bridge the operating cost gap between low carbon hydrogen
and high carbon fuels. The Department for Energy Security and Net
Zero aims to award contracts to the successful projects in Q4
2023.
ORIT and Sky, which are investing on the same terms, will each
own 25% of HYRO and will have the exclusive rights to provide
further development funding beyond each fund's initial GBP5m
commitment, as well as preferential rights to fund the construction
of the electrolyser projects.
Phil Austin, Chairman of Octopus Renewables Infrastructure Trust
plc, commented: "This partnership with experienced renewables
company RES is our first investment into the green hydrogen sector
- an exciting, vital and fast-growing part of the net zero economy.
It adds further technological diversification and provides the
potential to significantly contribute to future decarbonisation and
the reduction of greenhouse gases in hard-to-electrify industries
where green hydrogen will be the fuel of the future. The investment
marks ORIT's fourth developer investment and provides even more
value for the future expansion of our proprietary pipeline."
Chris Gaydon, Investment Director at Octopus Energy Generation
commented: "Green hydrogen is expected to become a critical part of
the energy transition. Whilst electrification should be the
preferred solution to decarbonisation wherever possible, there are
some sectors of the economy, including heavy industry, where this
is not always possible, and green hydrogen has a huge role to play
here."
For further information please contact:
Octopus Energy Generation (Investment Manager) Via Buchanan
Chris Gaydon, David Bird
Peel Hunt (Broker)
Liz Yong, Luke Simpson, Huw Jeremy (Investment
Banking)
Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris,
Michael Bateman (Sales) 020 7418 8900
Buchanan (Financial PR)
Charles Ryland, Hannah Ratcliff, George Beale 020 7466 5000
Apex Listed Companies Services (UK) Limited (Company
Secretary) 020 3327 9720
Notes to editors
About RES
RES is the world's largest independent renewable energy company
active in onshore and offshore wind, solar, green hydrogen, energy
storage and transmission and distribution. At the forefront of the
industry for over 40 years, RES has delivered more than 23GW of
renewable energy projects across the globe and supports an
operational asset portfolio exceeding 12GW worldwide for a large
client base. Understanding the unique needs of corporate clients,
RES has secured over 1.5GW of corporate power purchase agreements
(PPAs) enabling access to energy at the lowest cost. RES employs
over 2,500 people and is active in 14 countries.
Further details can be found at www.res-group.com
About HYRO
HYRO is RES' green hydrogen joint venture with ORIT and Sky,
funds managed by Octopus Energy Generation. HYRO is developing
green hydrogen solutions to energy-intensive industrial businesses
with hard-to-electrify processes. HYRO will work with these
industrial businesses to develop, own and operate green hydrogen
plants, providing reliable and cost-competitive sources of clean
hydrogen from renewable energy.
Further details can be found at https://hyro.energy/
About Octopus Renewables Infrastructure Trust
Octopus Renewables Infrastructure Trust ("ORIT") is a
closed-ended investment company incorporated in England and Wales
focused on providing investors with an attractive and sustainable
level of income returns, with an element of capital growth, by
investing in a diversified portfolio of renewable energy assets in
Europe and Australia. ORIT's investment manager is Octopus Energy
Generation.
Further details can be found at
www.octopusrenewablesinfrastructure.com
About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda
by building green power for the future. Its London-based, leading
specialist renewable energy fund management team invests in
renewable energy assets and broader projects helping the energy
transition, across operational, construction and development
stages. The team was set up in 2010 based on the belief that
investors can play a vital role in accelerating the shift to a
future powered by renewable energy. It has a 12-year track record
with approximately GBP6.0 billion of assets under management (AUM)
(as of January 2023) across 13 countries and total 3.2GW. These
renewable projects generate enough green energy to power 2 million
homes every year, the equivalent of taking over 800,000 petrol cars
off the road. Octopus Energy Generation is the trading name of
Octopus Renewables Limited.
Further details can be found at
www.octopusenergygeneration.com
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