Octopus Renewables Infrastructure Trust plc is pleased to announce that it has agreed to invest up to £5m 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
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 £5m 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.”
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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. 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. 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. www.
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 £6.0 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. www.
