HydrogenOne invests in Strohm Holding
Following the investment in Strohm, HydrogenOne will have the right to a board seat.
HydrogenOne Capital Growth plc has signed definitive agreements for an investment of £8.4m in Strohm Holding B.V. (Strohm).
HydrogenOne is investing alongside Strohm’s existing investors Shell Ventures, Chevron Technology Ventures and Evonik Venture Capital, in the first close of a funding round totalling £11.8m. HydrogenOne may also invest up to a further £1.7m in the second close of this funding round, which is anticipated to be at least £5.1m in aggregate in addition, expected later in 2022.
Strohm is a private supply chain company focused on the offshore wind-to-hydrogen sector and supporting a reliable, faster, cheaper green energy transition worldwide. The company is developing safe and dependable pipeline solutions whereby green hydrogen generated at offshore wind turbines can be transported to shore via Strohm’s subsea pipe infrastructure. From its base near Amsterdam, the Netherlands, Strohm is a global market leader in the Thermoplastic Composite Pipe (TCP) design and manufacturing.
This fundraising is expected to enable Strohm to scale up its plant capacity in the Netherlands and delivers on its energy transition agenda as it continues to support clients towards net-zero goals with its durable, lightweight and 100% recyclable pipe solution, proven to reduce the CO2 footprint of pipeline infrastructures by up to 60%.
Over 9 gigawatts (GWs) of offshore green hydrogen projects have been proposed in the North Sea basin, with further multi-GWs growth potential, alongside Carbon Capture, Utilisation and Storage (CUS), all of which will require specialist pipeline solutions at scale. Strohm is well positioned to service the development of this offshore hydrogen and CCUS market.
Simon Hogan, Chairman of HydrogenOne, said, “We continue to demonstrate the impressive pace and quality of our capital deployment through this latest investment in Strohm. This is our ninth private investment since the launch of our clean hydrogen-focused fund and an excellent addition to our growing portfolio.”
Martin van Onna, MD of Strohm, said, “TCP can transfer up to nine times the amount of energy compared to a cable, and can be used to store hydrogen, thereby increasing the uptime of offshore wind farms”.
Peter van Giessel, Partner at Shell Ventures, said, “The company has qualified its products, commercially deployed them in various applications across the world and has now reached the inflection point. This investment underlines the versatility of Strohm’s technology and its potential to play an important enabling role in the offshore renewable space.”
Bernhard Mohr, MD of Evonik Venture Capital, said, “The jointly developed thermoplastic composite pipes are the most reliable and cost-effective solution for the transport of offshore hydrogen. With HydrogenOne, we found the ideal partner to bring the technology to scale and establish Strohm in the field of renewable hydrogen.”