JLEN Environmental Assets Group Limited (“JLEN” or the “Company”), the listed environmental infrastructure fund, is pleased to announce its investment up to the value of €9.2m into the Company’s second green hydrogen development opportunity, also in Germany, alongside a consortium including other Foresight managed funds and its development partner HH2E, a specialist in developing green hydrogen projects to decarbonise industry.
The green hydrogen production site is located in Lubmin, Germany and is capable of producing over 6,000 tonnes (200,000 MWh) of green hydrogen per annum during the first 100 MW phase, which will encompass electrolysis and integrated high-capacity battery storage. Subsequent expansion phases are expected to increase capacity to over 1 GW, with annual production exceeding 60,000 tonnes of green hydrogen.
The Lubmin plant will be built and operated by HH2E and will serve green hydrogen customers and offtakers, including the mobility sector and large-scale energy and industrial consumers. Lubmin benefits from excellent pre-existing grid infrastructure, including two LNG terminals, built in 2022, which connect the town with the country’s pipeline network.
The consortium of investors has approved the Preliminary Investment Decision and the initial investment is being utilised for detailed engineering designs and the procurement of long lead items. The Final Investment Decision is expected in the coming months, with construction of the plant commencing immediately thereafter.
This follows an announcement made in January to invest in the Thierbach green hydrogen project near Borna in Germany in partnership with HH2E. Both opportunities are expected to provide attractive returns compared to the portfolio average.
Ed Warner, Chair of JLEN, said:
“We are pleased to be making good progress with our partnership with HH2E, which is poised to become one of the largest producers of green hydrogen in Europe. They have a deep understanding of the sector and they are highly capable of developing attractive opportunities to unlock value for investors. Hydrogen has an important role to play in decarbonising heavy transport, industry, and other hard-to-abate sectors of the economy. Investing in this sector will remain an important near-term focus for the Company as we continue to assess opportunities to recycle capital within the portfolio.”
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