REG - HydrogenOne Cap Gwth - Half-year Report
16/09/2024 07:00
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RNS Number : 2227E HydrogenOne Capital Growth PLC 16 September 2024
LEI: 213800PMTT98U879SF45
16 September
2024
HydrogenOne Capital Growth plc
HALF-YEARLY REPORT 2024
Company Overview
HydrogenOne Capital Growth Plc ("HGEN", the "Company") is the first
London-listed fund investing in clean hydrogen for a positive environmental
impact.
The Company was launched in 2021 with an investment objective to deliver an
attractive level of capital growth by investing, directly or indirectly, in a
diversified portfolio of hydrogen and complementary hydrogen focussed assets
whilst integrating core ESG principles into its decision making and ownership
process. The Company is an Article 9 climate impact fund under the Sustainable
Finance Disclosure Regulation (the "SFDR").
· A unique offering to investors - leadership in a new green energy
technology sector from the first London-listed hydrogen fund.
· Strong orientation to ESG mandates, investing capital in
low-carbon growth and enabling the avoidance of GHG emissions.
· High quality portfolio with potential to deliver 10-15% average
NAV growth, including exits*.
· First mover advantage in the Hydrogen sector, which is
accelerating faster than anticipated with positive growth outlook.
· Investment Adviser's track record in energy and capital markets.
* For an investor in HGEN at IPO. The total NAV return target is a
target only and not a profit forecast.
£133.5m
Net Asset Value
SFDR Article 9
Climate impact fund
157,868 tCO2e
Cumulative greenhouse gas emissions avoided since IPO
Highlights and key metrics
Financial and operational highlights
· NAV per share increased by 0.6% from 31 December 2023 to 30 June
2024 (102.99p to 103.60p). NAV grew by 0.6% from £132.7 million to £133.5
million and the share price increased by 7.8% over the same period;
· Positive progress on revenue growth from portfolio companies,
delivering an aggregate £76 million in total revenue in the 12-month period
to 30 June 2024, an increase of 44% compared to the 12-month period to 30 June
2023;
· Strategic industrial and major financial investors have backed
HydrogenOne portfolio companies in 2024, totalling EUR 670 million, including
investment from Baker Hughes and GIC;
· Consolidation of HH2E adds interest in Lubmin green hydrogen
project for HGEN;
· The Company estimates the carrying value of the private portfolio
is in line with comparable listed hydrogen companies, underlining HGEN focus
on private assets and robust valuation methodology;
· Investment activity centred on follow-ons. During the six months
ended 30 June 2024, the Company made further investments in five Private
Hydrogen Assets in its portfolio, totalling £2.6 million;
· The portfolio weighted average discount rate at 30 June 2024 was
13.3% (31 December 2023: 14.2%) resulting in a 1.67 pence per share increase
in NAV between 31 December 2023 and 30 June 2024;
· The Company has retained an uncommitted cash position of £1.6
million as at 30 June 2024, and £0.3 million of listed hydrogen companies at
the end of the period; and
· The fundamentals of the clean hydrogen sector continued to
strengthen, despite continued weak macroeconomic conditions. The Investment
Adviser has tracked a 50% increase in green hydrogen production over the last
year, and a 25% increase in investment in the sector so far this year,
compared to all of 2023, underpinning further growth.
Environmental, Social and Governance ("ESG") highlights
· HGEN is an SFDR Article 9 impact fund with a sustainable
investment objective aligned with the climate change mitigation goal of the EU
Taxonomy;
· £116.3 million deployed in low-carbon growth (since fund
inception);
· 157,868 tCO2e cumulative greenhouse gas emissions avoided since
IPO;
· 62,282 MWh potential lifetime clean energy of products installed
in HY2024 and 859,576 MWh since IPO;
· 88.1% alignment with EU taxonomy for sustainable activities (the
"EU Taxonomy") assessment on Private Hydrogen Assets at 30 June 2024;
· Produced the Company's first standalone Sustainability Report
aligned with the International Sustainability Standards Board as an early
adopter, including the S2 Climate Standard that incorporates the Taskforce on
Climate-related Financial Disclosures recommendations;
· Reported to the Principles of Responsible Investment ("PRI") and
the Carbon Disclosure Project ("CDP"); and
· Continued stewardship activity with private portfolio companies
to further enhance ESG credentials and reporting.
Key metrics
At 30 June 2024 At 31 December 2023 % change(1,2,)
NAV per Ordinary Share 103.60p 102.99p 0.6%
NAV £133.5m £132.7m 0.6%
Ordinary share price 53.50p 49.65p 7.8%
Market capitalization £68.9m £64.0m 7.7%
Share price discount to NAV(1) 48.4% 51.8% (6.6)%
Ongoing charges 2.41% 2.56% n/a
Cumulative capital deployed in low-carbon growth since inception £116.3m £113.7m 2.3%
Cumulative GHG emissions avoided since IPO 157,868 tCO2e 134,076 tCO2e 17.7%
1 These are alternative performance measures
2 Total absolute percent return in sterling for the six months to 30
June 2024
Alternative Performance Measures ("APMs")
Alternative Performance Measures ("APMs"). The disclosures above are
considered to represent the Company's APMs. Definitions of these APMs and
other performance measures used by the Company, together with how these
measures have been calculated, can be found below..
Portfolio at a glance
Chair's statement
On behalf of the Board, I am pleased to present the third Interim Report of
the Company, covering the six-month period to 30 June 2024 and the Company's
financial position at that date.
Performance
The Company's NAV per share at 30 June 2024 was 103.60p, a 0.6% gain across
the period under review (102.99p at 31 December 2023) and a 2.9% gain since
30 June 2023. Overall NAV per share has continued to increase in every half
year reporting period since the Company's IPO in 2021 due principally to
valuation uplifts in multiple portfolio companies, as those management teams
deliver on their respective growth plans.
The Company's top performing investments were: HiiROC, HH2E and Bramble all of
which have demonstrated notable progress.
The macroeconomic climate continues to be a challenging one, reflected in the
discounted valuations of the investment trust sector and in capital outflows
from UK equities, in turn preventing the majority of investment trusts from
raising further capital. Higher market discount rates and reduced risk
appetite have also resulted in investors re-allocating capital away from
growth sectors in particular. As is the case for many of our peers, this has
impacted your Company's share price which remains at a steep discount to the
value of its assets, despite steady continued growth in the underlying value
of the portfolio. The Board is acutely aware that the current share price does
not reflect the ongoing tangible value creation we have witnessed across our
investments and their significant potential for further growth. We trust that
maintaining our stewardship of the portfolio, supported by selective
investments, will continue to see steady growth in the value of our portfolio
and over time improve the share price. We are also working diligently towards
successful divestments that will result in a positive cash return for the
Company from these realisations and prove the value that lies in our unique
portfolio.
By contrast, the outlook for the clean hydrogen sector remains positive,
underpinning our view that the portfolio will generate attractive returns over
time. The rapid adoption of green hydrogen underscores our view that the
Company is investing in a budding sector with a favourable outlook and
substantial growth potential.
Our investment case continues to be reinforced by increasingly supportive
regulatory regimes in the clean hydrogen sector. New regulations and funding
for clean hydrogen are being rolled out in the USA, UK and EU. The EU, where
the Company has 60% of its NAV, has reshaped its energy policy to the
REPowerEU 2030 plan, which calls for over 300GW of clean hydrogen by 2030,
compared to 80GW in previous plans. Germany is a leader in clean hydrogen
developments and has incorporated the RED III Delegated Act into national law,
which confirmed a 42% target for use of renewable hydrogen in industry by
2030, and announced plans for more stringent measures to curb GHG emissions
for use of renewable hydrogen in industry.
The newly elected UK government has pledged to deliver 10GW of low-carbon
hydrogen production by 2030. Investment companies such as HydrogenOne could
provide much needed private capital to help achieve the government's
decarbonisation targets whilst improving energy security by supporting clean
tech companies and projects.
Portfolio
Our portfolio comprises nine private investments in green hydrogen innovation
companies and is highly diversified across the sector's full value chain from
green hydrogen production developers to hydrogen applications, supply chain
and storage and distribution. Six of the Company's private investments are
revenue generating, producing equipment and technology solutions for green
hydrogen production. The aggregate revenue from these investments was £76m in
the 12‑month period to 30 June 2024, an increase of 44% from the 12-month
period to 30 June 2023. This growth is a result of portfolio companies
receiving an increasing number of customer orders for their unique
technologies.
With the Company's capital now fully deployed, our approach is focused on
incremental investments in existing portfolio companies, with £2.6 million of
total follow-on investments during the period backing these management teams
to deliver their growth plans.
We are pleased to report that our portfolio companies continue to attract
substantial fresh capital from strategic investors, with over £560 million of
investment completed during the period; a successful equity funding round by
Sunfire as part of a wider funding package totalling more than EUR 500 million
in fresh capital; the Baker Hughes investment in Elcogen marking the close of
a EUR 140 million funding round; and Strohm, completing a EUR 30 million
raise. The growing number of investments by global industrial companies and
private equity investors once again underscores the attraction of these
distinctive clean hydrogen growth technologies.
The Investment Manager's Report (below) includes a more detailed review of the
performance of the portfolio companies.
Outlook
As we continue to navigate these challenging markets, our focus remains on
nurturing our portfolio companies to achieve their full growth potential
whilst protecting invested capital, preserving cash and realising returns. Our
goal remains to exit these positions over three to five years holding periods,
at multiples of invested capital, in order to generate 10-15% NAV growth over
time.
The Company continues to assess potential divestment opportunities to
demonstrate the value of the portfolio and provide a capital injection for the
Company. Given that share registers of portfolio companies include numerous
strategic investors, some of which have increased their stakes considerably,
the Investment Adviser remains optimistic on achieving realisations in this
calendar year.
On behalf of the Board, I would like to thank all of our shareholders for
their support during this challenging period, as we continue to develop our
unique portfolio of clean hydrogen investments. I hope the solid NAV
performance of our portfolio, growing track record of revenue growth and
delivery of key operational milestones will in time be catalysts for
appreciation in our share price.
Simon Hogan
Chair
13 September 2024
Investment objective and policy
Investment objective
The Company's investment objective is to deliver an attractive level of
capital growth by investing, directly or indirectly, in a diversified
portfolio of hydrogen and complementary hydrogen focussed assets whilst
integrating core ESG principles into its decision making and ownership
process.
Investment policy
The Company will seek to achieve its investment objective through investment
in a diversified portfolio of hydrogen and complementary hydrogen focussed
assets, with an expected focus in developed markets in Europe, North America,
the GCC and Asia Pacific, comprising:
i. assets that produce clean hydrogen;
ii. large scale energy storage assets;
iii. carbon capture, use and storage assets;
iv. hydrogen distribution infrastructure assets;
v. assets involved in hydrogen supply chains, such as electrolysers and
fuel cells; and
vi. businesses that utilise hydrogen applications such as transport, power
generation, feedstock and heat (together "Hydrogen Assets").
The Company intends to implement its investment policy through the acquisition
of hydrogen and complementary hydrogen focussed assets.
Private Hydrogen Assets
The Company invests in unquoted Hydrogen Assets, which may be operational
companies or hydrogen projects (completed or under construction) ("Private
Hydrogen Assets"). Investments are expected to be mainly in the form of
equity, although investments may be made by way of debt and/or convertible
securities. The Company may acquire a mix of controlling and non-controlling
interests in Private Hydrogen Assets, however the Company intends to invest
principally in non-controlling positions (with suitable minority protection
rights to, inter alia, ensure that the Private Hydrogen Assets are operated
and managed in a manner that is consistent with the Company's investment
policy).
Given the time frame required to fully maximise the value of an investment,
the Company expects that investments in Private Hydrogen Assets will be held
for the medium to long term, although short term disposals of assets cannot be
ruled out in exceptional or opportunistic circumstances. The Company intends
to re-invest the proceeds of disposals in accordance with the Company's
investment policy.
The Company observes the following investment restrictions, assessed at the
time of an investment, when making investments in Private Hydrogen Assets:
· no single Private Hydrogen Asset will account for more than 21
per cent. of Gross Asset Value;
· Private Hydrogen Assets located outside developed markets in
Europe, North America, the GCC and Asia Pacific will account for no more than
20 per cent. of Gross Asset Value; and
· at the time of an investment, the aggregate value of the
Company's investments in Private Hydrogen Assets under contract to any single
Offtaker will not exceed 40 per cent. of Gross Asset Value.
The Company will initially acquire Private Hydrogen Assets via HydrogenOne
Capital Growth Investments 1 LP (the 'HydrogenOne Partnership'), a wholly
owned subsidiary undertaking of the Company structured as an English limited
partnership which is controlled by the Company and advised by the Investment
Adviser. The HydrogenOne Partnership's investment policy and restrictions are
the same as the Company's investment policy and restrictions for Private
Hydrogen Assets and cannot be changed without the Company's consent. In due
course, the Company may acquire Private Hydrogen Assets directly or by way of
holdings in special purpose vehicles or intermediate holding entities
(including successor limited partnerships established on substantially the
same terms as the HydrogenOne Partnership) or, if the Company is considered a
'feeder fund' under the Listing Rules, other undertakings advised by the
Investment Adviser and, in such circumstances, the investment policy and
restrictions will also be applied on a look-through basis and such
undertaking(s) will also be managed in accordance with the Company's
investment policy.
Listed Hydrogen Assets
The Company also invests in quoted or traded Hydrogen Assets, which will
predominantly be equity securities but may also be corporate debt and/or other
financial instruments ("Listed Hydrogen Assets"). The Company is free to
invest in Listed Hydrogen Assets in any market or country with a market
capitalisation (at the time of investment) of at least US$100 million. The
Company's approach is to be a long-term investor and will not ordinarily adopt
short-term trading strategies. As the allocation to Private Hydrogen Assets
grows the Listed Hydrogen Assets are expected to include strategic equity
holdings derived from the listing of operational companies within the Private
Hydrogen Assets portfolio over time.
The Company observes the following investment restrictions, assessed at the
time of an investment, when making investments in Listed Hydrogen Assets:
· no single Listed Hydrogen Asset will account for more than 3 per
cent. of the Gross Asset Value;
· each Listed Hydrogen Asset must derive at least 50 per cent. of
revenues from hydrogen and/or related technologies; and
· the target allocation to Listed Hydrogen Assets will be
approximately 10 per cent or less of Gross Asset Value, subject to a maximum
allocation of 30 per cent of Gross Asset Value.
Cash
During the initial Private Hydrogen Asset investment period after a capital
raise and/or a realisation of a Private Hydrogen Asset, the Company intends to
hold the relevant net proceeds of such capital raise/realisation in cash (in
accordance with the Company's cash management policy set out below) pending
subsequent investment in Private Hydrogen Assets.
Investment restrictions
The Company, in addition to the investment restrictions set out above, comply
with the following investment restrictions when investing in Hydrogen Assets:
· the Company will not conduct any trading activity which is
significant in the context of the Company as a whole;
· the Company will, at all times, invest and manage its assets
i. in a way which is consistent with its object of spreading investment
risk; and
ii. in accordance with its published investment policy;
· the Company will not invest in other UK listed closed-ended
investment companies; and
· no investments will be made in companies or projects that
generate revenues from the extraction or production of fossil fuels (mining,
drilling or other such extraction of thermal coal, oil or gas deposits).
Compliance with the above restrictions is measured at the time of investment
and non-compliance resulting from changes in the price or value of Hydrogen
Assets following investment will not be considered as a breach of the
investment policy or restrictions.
Borrowing policy
The Company may take on debt for general working capital purposes or to
finance investments and/or acquisitions, provided that at the time of drawing
down (or acquiring) any debt (including limited recourse debt), total debt
will not exceed 25 per cent of the prevailing Gross Asset Value at the time of
drawing down (or acquiring) such debt. For the avoidance of doubt, in
calculating gearing, no account will be taken of any investments in Hydrogen
Assets that are made by the Company by way of a debt investment.
Gearing may be employed at the level of a special purpose vehicle ("SPV") or
any intermediate subsidiary undertaking of the Company (such as the
HydrogenOne Partnership) or, if the Company is considered a 'feeder fund'
under the Listing Rules, other undertakings advised by the Investment Adviser
in which the Company has invested or the Company itself. The limits on debt
shall apply on a consolidated and look-through basis across the Company, the
SPV or any such intermediate holding entities (such as the HydrogenOne
Partnership) or, if the Company is considered a 'feeder fund' under the
Listing Rules, other undertakings advised by the Investment Adviser in which
the Company has invested but intra-group debt will not be counted.
Gearing of one or more Hydrogen Assets in which the Company has a
non-controlling interest will not count towards these borrowing restrictions.
However, in such circumstances, the matter will be brought to the attention of
the Board who will determine the appropriate course of action.
Currency and hedging policy
The Company has the ability to enter into hedging transactions for the purpose
of efficient portfolio management. In particular, the Company may engage in
currency, inflation, interest rates, energy prices and commodity prices
hedging. Any such hedging transactions will not be undertaken for speculative
purposes.
Cash management
The Company may hold cash on deposit and may invest in cash equivalent
investments, which may include short-term investments in money market type
funds ("Cash and Cash Equivalents").
There is no restriction on the amount of Cash and Cash Equivalents that the
Company may hold and there may be times when it is appropriate for the Company
to have a significant Cash and Cash Equivalents position. In particular, the
Company anticipates holding cash to cover the near-term capital requirements
of the Pipeline of Private Hydrogen Assets and in periods of high market
volatility. For the avoidance of doubt, the restrictions set out above in
relation to investing in UK listed closed-ended investment companies do not
apply to money market type funds.
Investment Adviser's report
About the Investment Adviser
The Company's Alternative Investment Fund Manager ("AIFM"), FundRock
Management Company (Guernsey) Limited, (part of Apex Group), has appointed
HydrogenOne Capital LLP as the Investment Adviser to the AIFM in respect of
the Company. Its key responsibilities are to originate, analyse, assess and
recommend suitable investments within the hydrogen sector, and advise the AIFM
accordingly. Additionally, the Investment Adviser performs asset management
services in relation to the investments in the portfolio or, to the extent
asset management is delegated to third parties, oversees and monitors such
asset management.
HydrogenOne Capital LLP was founded in 2020 as an alternative investment firm
focussed specifically on investing in hydrogen assets and their role in the
energy transition. As a responsible investor, HydrogenOne Capital LLP is
committed to contributing to the energy transition through the financing of
sustainable investments and by providing investment solutions that reduce
carbon emissions.
HydrogenOne Capital LLP employs a fully integrated investment and asset
management approach and incorporates its focus on ESG criteria throughout the
entire investment process.
The Principals of the Investment Adviser
The Principals of the Investment Adviser have in excess of 60 years of
combined experience and a track record of success in the energy industry and
capital markets which are directly applicable to the hydrogen industry,
including acquisitions, mergers and divestments, development of growth energy
projects, supervision of profitable energy production, ESG, investments in
both listed and private companies and board advisory. Their biographies are
included in the annual report.
The Investment Adviser's team
The Principals have assembled an experienced team to support the Company. This
group brings a mixture of finance, technical and sector skills to support the
Investment Adviser in its day-to-day activity. The Investment Adviser has
established a team which is responsible for financial modelling, corporate and
asset valuation analysis, and opportunity assessment for the Company.
Advisory Board of the Investment Adviser
The Principals of the Investment Adviser are supported by an experienced team
which comprises the Advisory Board.
The Advisory Board has been carefully selected to provide expert advice to the
Investment Adviser on the hydrogen sector, project finance and capital
markets. The Investment Adviser has appointed the members of the Advisory
Board to provide it with advice from time to time. No members of the Advisory
Board are directors, officers, employees or consultants of the Company, the
AIFM or the Investment Adviser. It is envisaged that the Advisory Board will
evolve over time, with additional experts being added or substituted as and
when required.
Portfolio
Portfolio summary
The Company invests mainly in Private Hydrogen Assets, through the Limited
Partnership as detailed below. The Company also held £311,000 in Listed
Hydrogen Assets at 30 June 2024.
Company Country of incorporation Value of investment £'000
Private Hydrogen Assets held by the Limited Partnership at 30 June 2024
Sunfire GmbH Germany 28,369
Elcogen plc United Kingdom 26,211
HiiROC Limited United Kingdom 22,957
Strohm Holding BV The Netherlands 13,207
Bramble Energy Limited United Kingdom 12,552
HH2E AG Germany 12,300
Cranfield Aerospace Solutions Limited United Kingdom 12,169
Gen2 Energy Norway 3,455
Swift Hydrogen United Kingdom 418
Total 131,638
Valuation
As set out in note 4 of the Financial Statements, the Investment Adviser has
carried out fair market valuations of the Private Hydrogen Assets at 30 June
2024, which have been reviewed by the Valuation Committee, and the Directors
have satisfied themselves as to the methodology used, the discount rates and
key assumptions applied.
Private Hydrogen Assets at 30 June 2024 have been valued using either the
discounted cash flow ('DCF') methodology, recent third party investment, or
net asset values consistent with the International Private Equity and Venture
Capital Valuation ("IPEV") Guidelines. The valuations are also benchmarked
against listed peer group valuations.
Listed Hydrogen Assets are valued at fair value, which is the bid market
price, or, if bid price is unavailable, last traded price on the relevant
exchange.
Our approach to valuation remains consistent and unchanged. Valuations are
updated for all Private Hydrogen Assets on a quarterly basis and approved by
the AIFM, the Valuation Committee and the Board, and are audited annually by
the Company's auditor, KPMG.
Discount rates are calculated using market parameters for each investment
domicile. The weighted average discount rate for 30 June 2024 was 13.3%
compared with 14.2% at 31 December 2023, as a result of easing country base
rates and lower small company premiums. This has led to a NAV increase of 1.6%
since 31 December 2023.
The Company notes that its NAV has been steadily increasing over the last 12
months, increasing by 2.9% from 30 June 2023 to 30 June 2024. This has been
driven by organic growth in the Company's private assets and lower discount
rates, despite headwinds from lower share prices of the listed portfolio
companies. The share prices of listed hydrogen companies, which we track with
the Solactive Hydrogen Economy Index ("SOLGHYD"), have been volatile and
declining since Q3 2021. This decline is due to market allocation away from
early-stage technology businesses as interest rates have risen, and a
correction to the high valuations seen in the market in 2020-21.
The Company's own share price has tracked this decline in listed hydrogen
companies, and listed funds in general, and, despite the growth in NAV,
declined by 16% in the 12 months to 30 June 2024. In 2021-22, the Company
assessed that many listed hydrogen companies were trading on higher valuations
than its private portfolio companies, based on forward multiples of revenues.
The revenue multiples of the listed hydrogen sector and the Company's private
portfolio have converged in 2023-24, as the listed hydrogen sector had
de-rated.
· Listed hydrogen company valuations have decreased in 2022-24,
whereas the Company's NAV has been steady, reflecting our consistent valuation
methodology
· The performance of our portfolio companies by theme has continued
to outperform the SOLGHYD index of listed hydrogen companies since our first
investments in Q4 2021
· Forward revenue multiple of c. 5.5x (revenue weighted, 2025E) for
private portfolio is in line with listed hydrogen companies
Hydrogen industry landscape
The outlook for the clean hydrogen sector remains positive. The COP 28 meeting
in Dubai at the end of 2023 concluded with a call to transition away from
polluting fossil fuels and accelerate growth in renewables, in order to
mitigate the impact of climate change. At the same time, government policies
and funding in many regions remain supportive of growth in clean hydrogen, as
part of the push to 'net zero'.
The Russia-Ukraine war continues to keep political emphasis on energy
security, which results in growing policy support for domestic energy
supplies, including renewables and nuclear power in Europe, which is
supportive for the hydrogen sector. However, targets to phase out fossil fuels
from the transport sector have been postponed and reduced in several European
countries. The new UK Government has put more emphasis on policy support for
renewables, including a new £500 million funding package for clean hydrogen.
At the same time, many oil & gas companies have slowed their investments
into renewables and re-emphasised fossil fuels. These are complex and
sometimes conflicting market signals for investors in the hydrogen sector.
The Investment Adviser has tracked a 50% increase in green hydrogen production
over the last 12-months, now standing at 1.2GW of production, and an increase
of more than 25% in investment in the sector so far in 2024, compared to all
of 2023, underpinning further growth. Some 39GW of new green hydrogen capacity
is under development world-wide, with 9GW of this past Final Investment
Decision. All of this underscores the Investment Adviser's view that the
outlook for investment in clean hydrogen remains positive, despite headwinds
in markets more generally.
Performance and outlook
NAV per share increased by 0.6% from 31 December 2023 to 30 June 2024 (102.99p
to 103.60p), with NAV growing from £132.7 million to £133.5 million over the
period.
The NAV increase was driven primarily by valuation uplifts in six private
companies, positively contributing 2.9 pence per share. The main factors
behind this increase were roll-forward of discounted cash flow ("DCF")
valuations, and improving financial and growth confidence, hence de-risking
future financials and growth, from the portfolio companies. Discount rates
also had a positive impact on valuation in the 12-month period. The portfolio
weighted average discount rate at 30 June 2024 was 13.3%, lower than 31
December 2023 (14.2%), increasing NAV by 1.7 pence per share, or £2.1
million.
During the 12-months to 30 June 2024, private portfolio companies delivered an
aggregate unaudited £76 million in revenue, a 44% increase compared to the
12-months to 30 June 2023, on a pro-forma basis. Six of the nine private
companies are revenue generating. Project developers such as Gen2 Energy and
technology innovators such as HiiROC are inherently pre-revenue businesses at
this stage. These positive financial trends reflect the build out of capacity
to meet strong order books for hydrogen supply chain equipment.
Investments in the six months ended 30 June 2024 totalled £2.6 million in six
existing portfolio companies.
Cash and cash equivalents were £1.6 million, with an additional liquid
portfolio of listed hydrogen companies worth £0.3m at the end of the period.
The Company continues to focus on portfolio realisations and cash
preservation.
We continue to see strong investment interest from industrial strategic and
major financial investors in portfolio companies and the hydrogen industry
broadly in 2024 and note that Baker Hughes and the Government of Singapore
Investment Corporate ("GIC") invested in HydrogenOne businesses during 2024
which underpin the investment cases.
At 30 June 2024, the Company is invested in nine private investments, in the
UK and Europe, representing 99.8% of its invested portfolio by value.
Additional investment in strategic, global hydrogen equities represented 0.2%
of the invested portfolio.
The Investment Adviser has exited from the majority of the Company's listed
hydrogen investments during 2024, as we implement the strategy to focus on
private investments over time. As the Company enters its third full year of
trading, following its 2021 IPO, the Investment Adviser is engaging with
portfolio companies for full or partial exits from the private portfolio.
Several portfolio companies have engaged investment banks for this purpose.
The portfolio continues to perform in line with the expectations of the
Investment Adviser, HydrogenOne Capital LLP, despite the challenging
conditions in private equity fundraising currently.
Key portfolio milestones
· Sunfire successfully completed Series E financing round, totaling
over EUR 500 million, making it one of the best capitalised electrolyser
manufacturers in the industry;
· Elcogen secured a strategic investment by Baker Hughes, part of
an overall funding package totaling EUR 140 million to continue to scale up
Elcogen's leading solid oxide cell technology for green hydrogen;
· HiiROC completed a new strategic investment to accelerate its
expansion and sales into the US;
· Strohm successfully completed a new EUR 30 million capital raise,
including EUR 1.2 million from HydrogenOne, and was awarded a landmark
ultra-deep water, high CO2 pipeline contract by Totalenergies in Brazil;
· Cranfield Aerospace announced that Stratus 9, an innovator in
private aviation and fractional ownership plans to acquire up to 15 of CAeS
hydrogen propulsion conversion kits for the B-N Islander aircraft - the deal
is valued at over US$20 million;
· Bramble Energy launched PCBFC™ Gen. 2, a fuel cell system that
represents a 30% cost reduction from Gen 1;
· HH2E completed its consolidation process for enhanced efficiency
and growth preparation. The restructured corporate model exchanged interests
in five SPVs including Thierbach, and interests in a new SPV, Lubmin, for
equity in HH2E; and
· Gen2 Energy, signed a new collaboration agreement with Norsk
e-Fuel, whereby the two companies plan production facilities on neighbouring
plots at the Nesbruket industrial site in Mosjøen, Norway.
Our portfolio
Pressurized alkaline electrolyser used for green hydrogen production
Sunfire GmbH
www.sunfire.de
A German industrial electrolyser producer of pressure alkaline (AEL) and solid
oxide electrolysers (SOEC).
Total investment size £20.2m
% of NAV 21.3 %
Change in NAV in 2024 +£1.3m
Date of investment October 2021
Co-investors Planet First Partners, Lightrock, SMS, Neste, Copenhagen Infrastructure
Partners, Carbon Direct Capital Management, Blue Earth Capital, Amazon Climate
Pledge Fund, GIC
Why invested · Industry-leading electrolyser manufacturer, investing for growth
and technology development
· Material alkaline and solid oxide business, with revenues from a
growing international customer base in the global industrial electrolyser
market
· Strong product credentials backed by existing customer base and
generated by high quality in-house engineering and product design
· 500MW / annum electrolyser production site in EU - with a further
extension to gigawatt-scale already in planning
Company strategy for value creation Committed to its mission "Electrolysis. Delivered. At Scale", Sunfire is
targeting installation of multi-gigawatt electrolysis equipment by 2030 and
securing a leading position in the fast-growing global electrolyser market.
The company is providing large-scale green hydrogen projects with both
pressurized alkaline (AEL) and solid oxide electrolysers ("SOEC"). With this
unique product portfolio and a strong commitment to reliable execution and
scaling with best-in-class partners, Sunfire focuses on enabling efficient
green hydrogen production at competitive costs across different industrial
applications and making a significant contribution to generating green
industrial growth.
ESG strategy Sunfire enables industrial clients to decarbonise with clean hydrogen through
the production of electrolysers and fuel cells. The electrolysers the company
manufactures substantially contribute to avoiding greenhouse gas emissions by
producing renewable hydrogen. With that, Sunfire's electrolysis technologies
propel the energy transition in hard-to-abate sectors. During 2023, the
company officially launched the series production of core electrolyser
components at its site in Solingen where the company invested EUR 30 million
in scaling up an energy efficient production capacity.
Milestones delivered in 2024 · Successfully completed Series E financing round, totalling over
EUR 500 million, making Sunfire one of the best capitalised electrolyser
manufacturers in the industry
· Secured a term loan of up to EUR 100 million from the European
Investment Bank to scale the development and industrialization of its SOEC
electrolyser
· Conducted the front-end engineering and design study (FEED) for
500 MW hydrogen project in Europe. The comprehensive FEED study will define
operational parameters, site requirements, and execution guidelines with
integration partners for the 500 MW pressurized alkaline electrolyser
· Installed Finland's first industrial-scale electrolysis plant in
Harjavalta, with a 20MW alkaline electrolyser now in place
· Together with Linde Engineering Dresden, Fraunhofer Institute for
Ceramic Technologies and Technologies and Systems IKTS, presented the
"HyDresden" initiative, aiming to position Dresden internationally as an
innovative location for green hydrogen technologies
· After the period end, Sunfire's 10 MW pressurized alkaline
electrolyser was installed at RWE's industrial-scale green hydrogen production
in Lingen. Powered by renewable energy, the electrolyser can produce up to 200
kilograms of green hydrogen per hour. This project offers groundbreaking
insights into industrial-scale green hydrogen production
Elcogen's cells, stacks and modules
Elcogen plc
www.elcogen.com
Fuel cell and electrolyser manufacturer with presence in Estonia and Finland
Total investment size £20.5m
% of NAV 19.6%
Change in NAV in 2024 +£1.8m
Date of investment May 2022
Co-investors Biofuel OÜ, VNTM Powerfund II, Baker Hughes, HD Hyundai Group
Why invested · Industry-leading innovator and supplier of solid oxide cells and
stacks, with manufacturing facilities in Finland and Estonia, ready for
expansion
· High end offering based on advanced solid oxide ("SO") technology
with low operating temperatures and superior economics
· Developed a reversible ceramic technology that converts hydrogen
into emission-free electricity and vice versa
· Over 10-year track record
· Over 60 established industrial customers worldwide
Company strategy for value creation Elcogen believes in a future fuelled by green hydrogen and its ambition is to
become a leading global supplier of the underlying technology that can make
this future happen. Elcogen plans to achieve this through continued
development of the Group's solid oxide fuel cells ("SOFC") and SOEC technology
platform and manufacturing products at the lowest cost possible by securing
the economies of scale that come with volume production. The company plans to
fund development costs, increased production and corporate infrastructure
through increasing its revenue base, growing its list of customers and
continuing to attract strategic investors, which provide both revenue
opportunities as well as growth capital.
ESG strategy Elcogen supplies solid oxide cell for fuel cell systems and electrolysers, a
core technology that sits at the heart of energy security and the transition
away from fossil fuels. Elcogen is committed to delivering the world's most
efficient technology for the production and use of green hydrogen, providing
customers with affordable energy solutions to meet net zero targets. Green
hydrogen is promised to decarbonise hard-to-abate sectors and provide a clear
pathway away from fossil fuel reliance.
Milestones delivered in 2024 · Received strategic investment from Baker Hughes, part of an
overall funding package totaling EUR 140 million
· Laid the cornerstone for Elcogen's new factory in Tallinn. Once
completed, Elcogen's production capacity is expected to increase from 10
megawatts to 360 megawatts
· Announced collaboration under the Important Projects of Common
European Interest scheme ("IPCEI") with the Dutch Organization for Applied
Scientific Research ("TNO") to develop advanced SOE technology for future
market demands
· Signed a 10-year electricity sales agreement with Enefit Green,
under which a direct power connection line will be constructed between the Iru
power plant and Elcogen's manufacturing facility
· In collaboration with Convion, completed field testing for an
industrial scale solid oxide electrolyser system delivering green hydrogen at
superior efficiency compared to incumbent technologies. System performance was
very high, with electrical efficiency over 85%, which equates to 20-30% less
electricity used when compared with competing PEM and alkaline technologies
· After the period end, announced partnership with global
technology company AVL List GmbH to scale SOEC stack modules from small cell
footprints to multi-megawatt modules. The solution will incorporate multiple
Elcogen single SOEC stacks in a stack module which will enable industrial
scaling of the technology
Pilot units installed at Centrica's Scawby site, near Brigg
HiiROC Limited
www.hiiroc.com
UK-based thermal plasma electrolysis developer, with world-leading
(IP-protected) technology for low-cost, zero-emission hydrogen, also enabling
flare/waste gas mitigation and CO2 capture using biomethane
Total investment size £10.0m
% of NAV 17.2%
Change in NAV in 2024 +£9.3m
Date of investment November 2021
Co-investors Melrose Industries (GKN Aerospace), Centrica, Hyundai, Kia, Wintershall Dea,
VNG, CEMEX
Why invested · Proprietary technology to convert natural gas, flare gas and
biomethane into hydrogen and solid carbon black
· Multiple applications across all sectors of hydrogen use from
blending in natural gas grids to industrial decarbonisation to transport
· Opportunity to support methane reduction targets through the
global imperative to halt gas flaring and venting
· Industrial off-takers of the product such as Centrica, Hyundai
and CEMEX also on the shareholder register
· Highly scalable modular solution, producing 400kg / day of
hydrogen from a single unit through to large plants capable of 100's of tones
/ day of hydrogen, alongside carbon black
Company strategy for value creation HiiROC is focused on decarbonising production of hydrogen and carbon black and
reducing atmospheric GHGs through mitigation and capture. To do this, HiiROC
is working with customers to meet their specific needs for hydrogen and carbon
black rather than building capacity without offtake. Having demonstrated the
versatility of Thermal Plasma Electrolysis (TPE) across a number of use cases
and feedstocks in 2023, HiiROC is moving to the roll out of production plants
in the UK, USA and MENA.
ESG strategy HiiROC has developed a new process for producing affordable clean hydrogen,
TPE. This is a low-cost and zero CO2 emission process, producing clean
hydrogen and clean, versatile, solid carbon black. HiiROC can help accelerate
the transition to net zero through the deployment of its technology at scale.
HiiROC expects to make its most significant contributions to SDGs 7
(Affordable & Clean Energy), 9 (Industry, Innovation & Infrastructure)
and 11 (Sustainable Cities & Communities).
Milestones delivered in 2024 · Secured new strategic investment to accelerate HiiROC's expansion
into the US. The collaboration will see HiiROC leverage new sales channel
partnerships, expertise in energy supply and distribution, and the marketing
of 'drop-in fuels' to support this expansion
· Completed a proof-of-concept study that produced hydrogen and
carbon black from flare gas compositions in partnership with Capricorn Energy
and its joint venture partner, Cheiron Energy
· Alongside Centrica, won the Innovation Project award at Hydrogen
UK's 2024 Awards for their partnership in developing its technology to the
large demonstration stage
Strohm's Thermoplastic Composite Pipeline
Strohm Holding B.V
www.strohm.eu
The Netherlands-based hydrogen pipeline company
Total investment size £11.6m
% of NAV 9.9%
Change in NAV in 2024 (£6.5)m
Date of investment August & December 2022, November 2023
Co-investors Shell Ventures, Chevron Technology Ventures, Evonik Venture Capital, ING
Corporate Investments, SENCO Hydrogen Capital
Why invested · Industry leaders in offshore hydrogen and CO2 pipelines, where we
see significant market growth
· Thermoplastic composite pipe ("TCP") has c.50% less greenhouse
gas emissions than metal. Can transfer up to nine times the amount of hydrogen
energy compared to a cable
· TCP's flexibility, lack of corrosion, fatigue and embrittlement
make it the superior pipeline solution for offshore wind farms, generating
hydrogen
Company strategy for value creation Strohm's strategy is to enable the energy transition through proven high end
composite pipe technology. Strohm develops its technology for both
conventional energy applications, as well as in renewable energy applications.
The use of TCP manufactured by Strohm allows clients the ability to
significantly reduce the CO2 footprint of their pipeline infrastructure.
Strohm has unique benefits for both hydrogen and for CCS applications, in the
key attributes of its technology - the total lack of corrosion, embrittlement,
and fatigue. These provide fundamental solutions to support the energy
transition. The company invests in product development and qualifications for
renewable energy applications including hydrogen, CO2 transport, ammonia
transport, and similar applications.
ESG strategy Strohm produces a Thermoplastic Composite Pipe which has a 50% lower carbon
footprint than the alternative steel pipe. In addition to providing a low
carbon technology pipe, the application of this product is used to transport
hydrogen. One application is the conversion of offshore wind to hydrogen for
transport back to shore, one pipe can transfer 10 times the energy of an
equivalent cable.
Milestones delivered in 2024 · Successfully completed new EUR 30 million capital raise. The
round was led by a EUR 20 million investment by new and existing investors,
including EUR 1.2 million from HydrogenOne through convertibles
· Won third and largest ever TCP contract from ExxonMobil Guyana
· Added a new product for CCS applications. As a totally
corrosion-free solution, with a 30-year design life and a proven smaller
carbon footprint compared to steel, the product is suitable for injecting CO2
offshore, both in depleted gas fields and aquifers
· Successfully completed an extensive hydrogen testing programme on
its TCP at Tüv-Süd in Germany. The results demonstrate Strohm's TCP
technology feasibility as a robust and reliable solution for offshore hydrogen
infrastructure, offering corrosion resistance, superior fatigue life, and a
reduced environmental footprint
· After the period end, was awarded a new TCP contract by
TotalEnergies - the largest commercial award for pipe supply in Strohm's
16-year history, marking Strohm's entry into the ultra-deepwater market, and
qualification of a CO2 compatible TCP solution
Bramble Energy Electrolyzer
Bramble Energy Limited
www.brambleenergy.com
UK-based fuel cell and portable power solutions company
Total investment size £10.0 m
% of NAV 9.4%
Change in NAV in 2024 +£1.9m
Date of investment February 2022
Co-investors IP Group, BGF, Parkwalk, UCL Technology Fund
Why invested · Pioneering revolutionary fuel cell design and manufacturing
techniques
· Novel printed circuit board design PCBFC™ - low cost, scalable
and recyclable fuel cell modules
· Leading global automotive businesses working closely with Bramble
to scale up product offering
· Developing high-power density, mobility fuel cell systems
Company strategy for value creation Bramble Energy has developed the world's lowest cost fuel cell, suitable for
every application. It is manufacturable globally without capex, in existing
third-party facilities. Simplified stacks, means simplified systems, and that
means lower cost all round. Joint development agreements will lead to
technology licence agreements and royalties.
ESG strategy Using printed circuit board technology, Bramble creates flexible, completely
customisable, and globally accessible clean energy. Unlike typical fuel cells,
Bramble's Energy's PCB Fuel Cell can be produced on existing PCB production
lines. As PCB production is standardised and global, Bramble believes that
leveraging it is the key to deploying fuel cells in sufficient numbers to
achieve significant decarbonisation.
Milestones delivered in 2024 · Successfully completed Scale-up Readiness Validation (SuRV)
programme, funded by the Advanced Propulsion Centre UK. As part of SuRV,
Bramble Energy was awarded £1.8 million to develop an optimised fuel cell
stack assembly with the capacity to produce up to 2,000 50 kW stacks/year. The
completion of SuRV has seen Bramble Energy simplify its fuel cell stack
assembly process through the design of its already trademarked Printed Circuit
Board Fuel Cell (PCBFC™), which includes integrated membrane electrode
assembly into unitised PCB modules (cells)
· Bramble Energy's 'Hydrogen Bus' reached a crucial milestone,
taking a significant innovative step toward transforming the transport sector.
One year after the £12.7 million landmark project commenced, the concept
designs for the hydrogen system and double-decker bus have been completed and
are now moving into the manufacturing phase. The project, which was funded by
the Advanced Propulsion Centre UK, is expected to save nearly 6 million tonnes
of CO2 from being emitted
· Launched PCBFC™ Gen. 2, a fuel cell system that represents a
30% cost reduction from Gen 1
· Deployed its PCBFC technology in a hydrogen powered boat in the
HyTime project, working alongside custom engine builder Barrus. In a maritime
first, the 57-foot narrowboat has successfully completed testing,
emissions-free, using a custom marinised fuel cell system. The fuel cell
system has the potential to provide the vessel with approximately 600 miles of
range using the 14kg of hydrogen stored on-board
Cranfield hydrogen airplane
Cranfield Aerospace Solutions Limited
www.cranfieldaerospace.com
UK-based passenger flight innovator, powering turboprop flight with hydrogen
Total investment size £11.9m
% of NAV 9.1%
Change in NAV in 2024 +£0.3m
Date of investment March 2022, January 2023, September 2023
Co-investors Safran Ventures, Tawazun Strategic Development Fund, Motus Ventures
Why invested · A technology leader in delivering hydrogen powered turboprop
flight
· Aerospace market leader in the design and manufacture of new
aircraft design concepts, complex modifications to existing aircraft and
integration of cutting-edge technologies
· Working on CAA certification of the Britten-Norman Islander
passenger aircraft using hydrogen powered fuel cells supplying electricity to
DC motors for rotational power
Company strategy for value creation The company's mission is to deliver the world's first passenger carrying zero
emission aircraft using hydrogen fuel cell propulsion. The strategy to achieve
this is based on developing hydrogen fuel cell electrically driven powertrains
in a modular fashion that can be fitted to a range of air vehicles. The
powertrains will range in size from 125kW through to 500kW enabling them to be
used in small passenger aircraft, cargo drones and in auxiliary power units
for single and twin aisle aircraft.
ESG strategy Cranfield's ("CAeS") ambition is to be a designer & manufacturer of zero
& low carbon aircraft, starting with the development and certification of
hydrogen propulsion systems for existing aircraft platforms. Cranfield is
working on Phase 1 of their roadmap. "Project Fresson" is the conversion of a
Britten-Norman Islander 9-seat aircraft from conventional fossil fuel to that
of gaseous hydrogen propulsion. This provides a zero-emission passenger
carrier service.
Milestones delivered in 2024 · Stratus 9, an innovator in private aviation and fractional
ownership, announced plans to acquire 10 (with options for up to 15) of CAeS
hydrogen propulsion conversion kits for the B-N Islander aircraft. The deal,
valued at over US$20 million, paves the way for the first zero-emissions
fractional ownership programme in the United States
· Alongside Exeter Airport Consortium and ZeroAvia, was selected by
the UK Civil Aviation Authority to work closely with the regulator to increase
readiness of industry and the regulator for hydrogen fuel in flight
· Joined a consortium of 13 partners of the Sustainable Aviation
Test Environment, the UK's first low-carbon aviation test centre based at
Kirkwall Airport in Orkney
· Cranfield University, a major shareholder in CAeS, was awarded
£69 million by Research England's Research Partnership Investment Fund, and
industry partners and academic institutions, to create the Cranfield Hydrogen
Integration Incubator, which is the largest financial injection for research
that Cranfield University has ever secured
· After the period end, signed an agreement with Evia Energy for
the development of airport infrastructure to enable both electric and
hydrogen-electric aircraft operations at regional airports, offering potential
for turn-key solutions to create sustainable airports that can provide
sustainable fuels and energy for zero emissions aircraft
Future HH2E-Werk Lubmin, located in the Baltic coast of Germany
HH2E AG
www.hh2e.de
German green hydrogen project developer with a focus on industrial customers
Total investment size £7m HH2E and Thierbach
% of NAV 9.2%
Change in NAV in 2024 +£5.3m
Date of investment May 2022, January 2023
Co-investors Foresight Group LLP
Why invested · A prominent leader in Germany focused on green hydrogen and
battery storage project development
· HH2E has secured attractive German brownfield sites close to
hydrogen offtake with grid connections capable of 1 GW capacity
· Provides HGEN with pro-rata investment rights in multiple
large-scale green hydrogen-based decarbonisation projects
· The battery and alkaline electrolyser combination enables
near-constant production using the cheapest hours of renewable electricity
supply
Company strategy for value creation HH2E is at the vanguard of energy transition in Germany, aiming to become one
of largest green hydrogen producers in the country. HH2E developed an
innovative technology mix and a forward-thinking business strategy, to exploit
the surplus of solar and wind energy sources to produce green hydrogen on a
large scale, economically. This approach not only addresses the challenge of
renewable energy curtailment by utilising excess capacity but also sets a
benchmark for efficiency and sustainability in the industry. Backed by
institutional investors, HH2E plans to develop several sites aiming for a 4 GW
capacity by 2030. Upon completion, the ongoing Final Investment Decision
process for the HH2E Lubmin project, which begins with an initial capacity of
100 MW and is scalable to 1 GW, will mark a significant advancement in
enhancing green hydrogen production in Germany and Europe.
ESG strategy The HH2E power station transforms the fluctuating feed-in of solar and wind
energy into stable power supply. This is done by using solar and wind energy
generated during production peaks and using it to generate carbon-free, green
hydrogen. HH2E makes the use of renewable energies feasible on a large scale.
Large amounts of peak wind and solar power are converted into green hydrogen
using a highly efficient, innovative combination of electrolysis and battery
technology. This is then supplied to industry, the mobility sector and
municipalities, or used as fuel for turbines or fuel cells for regenerating
electricity. Waste heat from electrolysis is also used to cover the heat
requirements of neighbouring industries and municipalities.
Milestones delivered in 2024 · Completed its corporate consolidation by the exchange of
interests in five SPVs including Thierbach, and interests in a new SPV,
Lubmin, for equity in HH2E
· Alongside other industry partners and Leipzig/Halle Airport
presented the results of the economic and feasibility study "NetZeroLEJ"
showcasing main insights for SAF production in Germany
· GASCADE confirmed the grid connection of HH2E's green hydrogen
production site in Lubmin on the German Baltic coast to the European Gas
Pipeline Link. Initially, the pipelines will transport a mix of hydrogen and
natural gas
· After the period end, agreed a long-term partnership with BORSIG
ZM Compression GmbH (BZM) for the design and delivery of integrally geared
turbo compressors and reciprocating compressors. The procurement of key
machinery is an important step ahead of the finalization of the Final
Investment Decision for Lubmin
· In addition, after the period end, signed a Global Strategic
Partnership Agreement with Siemens in digitalization and automation, ahead of
commencement of construction and operation of HH2E's green hydrogen production
plants in Germany.
Gen2 planned hydrogen plant
Gen2 Energy
www.gen2energy.com
Norwegian green hydrogen project developer
Total investment size £4.0m (incl. CLN)
% of NAV 2.6%
Change in NAV in 2024 (£1.0)m
Date of investment March 2022, November 2023
Co-investors HyCap, Vitol, Hoegh LNG, Knutsen Group
Why invested · The leading Norwegian green hydrogen project developer, with
clear plans to convert low-cost hydroelectric power to hydrogen, for export
and domestic use
· Up to 925MW green hydrogen projects in Norway, with expected
production in 2026-2027
· Specialist in low-cost 24/7 hydroelectric power
· Co invested with Norwegian LNG and ship operators that provides
input to the Gen2 hydrogen export solution
· HGEN has follow-on investment rights in multiple project SPVs
Company strategy for value creation Gen2 Energy was set up to develop, build, own and operate production
facilities for green hydrogen and hydrogen derivatives, and to ensure an
efficient distribution of these products. The company aims to establish
production capacity at large-scale based on 100% renewable energy, and the
long-term target is to have an aggregate capacity of 1GW in production by
2030. Gen2 Energy believes that the technology, means of transport and market
demand for various green hydrogen derivatives will develop over time and has
an opportunistic approach to selecting solutions that optimise the
relationship between high value, low risk and low carbon emissions.
ESG strategy By utilising Norwegian renewable electricity for hydrogen production, Gen2
Energy ensures the supply of green hydrogen to displace fossil fuels.
Milestones delivered in 2024 · Entered into an agreement with Suldal municipality for the sale
of Gen2's property at Jelsa in Suldal, covering a total of 16,800 sqm, with a
combined building mass of 8,100 sqm
· Appointed Mr Kjetil Bøhn as new CEO to support the company's
next phase, when entering FID and large-scale hydrogen project
· Signed a new collaboration agreement with Norsk e-Fuel, whereby
the two companies plan production facilities on neighbouring plots at the
Nesbruket industrial site in Mosjøen, Norway
Net assets
Net assets increased from £132.7 million at 31 December 2023 to £133.5
million at 30 June 2024. The increase is principally due to an uplift in the
value of the Private Hydrogen Assets of £4.2 million.
The net assets of £133.5 million comprise £131.9 million portfolio value of
investments, including the holding in the HydrogenOne Capital Growth
Investments (1) LP ("Limited Partnership"), and the Company's cash balances of
£1.6 million, and net liabilities of £0.2 million.
The Limited Partnership's net assets of £131.6 million comprise £131.6
million portfolio value of investments, cash balances of £0.1 million, and
other net liabilities of £0.1 million.
Cash
At 30 June 2024, the Group had a total cash balance of £1.7 million,
including £1.6 million in the Company's balance sheet and £0.1 million in
the Limited Partnership, which is included in the Company's balance sheet
within 'investments held at fair value through profit or loss' (31 December
2023: £4.7 million).
The Company had cash and cash equivalents of £1.6 million, and £0.3 million
of listed hydrogen companies at the end of the period.
Gain for period
The Company's total gain before tax for the period ended 30 June 2024 is £0.8
million, generating gains of 0.61 pence per Ordinary Share.
In the period to 30 June 2024, the gains on fair value of investments were
£1.5 million.
The expenses included in the income statement for the year were £0.6 million,
in line with expectations. These comprise Investment Adviser fees and
operating expenses. The details on how the Investment Adviser fees are charged
are as set out in note 5 to the financial statements.
Ongoing charges
The 'ongoing charges' ratio is an indicator of the costs incurred in the
day-to-day management of the Company.
The ongoing charges percentage for the six-month period to 30 June 2024 was
2.41% (30 June 2023: 2.62%). The ongoing charges have been calculated, in
accordance with AIC guidance, as annualised ongoing charges (i.e. excluding
acquisition costs and other non-recurring items) divided by the average
published undiluted Net Asset Value in the period. The ongoing charges
percentage has been calculated on the consolidated basis and therefore takes
into consideration the expenses of Limited Partnership as well as the Company.
Richard Hulf, Dr JJ Traynor
HydrogenOne Capital LLP
13 September 2024
Environmental, social and governance ("ESG")
Displace fossil fuels
Most of the Company's investments either directly or indirectly displace
fossil fuels, making a clear contribution to achieving the Paris Accords
target of limiting global temperature rises to below 2 degrees and ideally
limiting them to 1.5 degrees.
ESG highlights:
· Produced the Company's first standalone Sustainability Report
aligned with the International Sustainability Standards Board as an early
adopter, including the S2 Climate Standard that incorporates the Taskforce on
Climate-related Financial Disclosures recommendations;
· Reported to the Principles of Responsible Investment and scored
above median average for the peer group in each of the three reported modules,
including: Policy, Governance and Strategy; Confidence Building Measures;
and Direct Private Equity;
· Submitted its second report to the Carbon Disclosure Project
("CDP"), a global non-profit organisation that runs the world's leading
environmental disclosure platform;
· Undertook a physical climate risk assessment incorporating
scenario analysis from the Intergovernmental Panel on Climate Change Shared
Socioeconomic Pathways;
· Following the period end, the Company received the S&P Global
Corporate Sustainability Assessment ("CSA") scores relating to the year ended
31 December 2023. The scores show that HGEN performs well in ESG, scoring 33
versus an industry average of 22 and putting the Company into the 85th
percentile. Performance in the Environmental and Social dimensions is
particularly strong, scoring in the 92nd and 94th percentiles, respectively.
Our Impact:
157,868 tCO2e
Cumulative greenhouse gas emissions avoided since IPO (HY2023: 134,076 tCO2e)
£116.3 million
Deployed in low-carbon growth since fund inception (HY2023: £111.1 million)
0.78 MW*
Fuel cell and electrolyser units sold in HY2024 (HY2023: 0.2 MW)
62,282 MWh*
Potential lifetime clean energy of products installed in HY2024 (HY2023: 592
MWh)
859,576 MWh*
Potential lifetime clean energy of products installed since IPO (HY2023:
227,292 MWh)
1,370
jobs supported in HY2024 (HY2023: 1,293)
88.1%
Portfolio alignment with the EU taxonomy at 30 June 2024 (HY2023: 87.6%)
· The Company's investment objective and investment policy are
closely aligned with seven of the United Nations Sustainable Development
Goals, namely Good Health and well-being (Goal 3), Affordable and Clean Energy
(Goal 7), Industry, Innovation and Infrastructure (Goal 9), Sustainable cities
and communities (Goal 11), Responsible Consumption and Production (Goal 12),
Life Below Water (Goal 14), and Life on Land (Goal 15);
· Continued stewardship activity with private portfolio companies
to further enhance ESG credentials and reporting; and
· The Company's Board gender diversity remained at 50%.
* A greater number of fuel cell and electrolyser units with higher capacity
were sold in HY2024 compared to HY2023, which led to a significant increase in
the potential lifetime clean energy of products installed. In addition, in
HY2024, includes figures from Sunfire which were not included in HY2023.
HY24 HY23
Total GHG emissions (tCO2e) 128 126
Scope 1 (tCO2e)* 7 14
Scope 2 (tCO2e)* 43 19
Scope 3 (tCO2e) 78 92
Carbon footprint (tCO2e per million EUR of value invested) 0.8 1.1
GHG intensity of portfolio companies (tCO2e per million EUR revenue) 64 31
Avoided emissions (tCO2e)*** 16,173 83,497
Avoided cumulative (tCO2e) 157,868 134,076
EU Taxonomy alignment (%) 88.1 87.6
Hazardous waste (tonnes per million EUR of value invested) 0.04 0.03
Energy consumption per high-impact climate sector (GWh per million EUR of 0.15 0.15
revenue)
Methodology
The greenhouse gas emissions have been calculated in accordance with the
Greenhouse Gas Protocol. Each portfolio company has been engaged to develop a
greenhouse gas inventory. This process includes the identification of
appropriate data sources for each inventory item. Data has been collected,
reviewed, and processed by an external provider to calculate the emissions.
Each portfolio company receives feedback on data quality based on relevance,
completeness, timeliness, and accuracy. Recommendations to improve quality are
also provided, and their implementation will be monitored on a quarterly basis
as data is collected throughout the year.
Estimates form a necessary part of the greenhouse gas emission process, and
emission factors are central to this. Primarily, the UK Department for
Environment, Food and Rural Affairs ("DEFRA") emission factors have been used
or, where more appropriate, the Intergovernmental Panel on Climate Change
("IPPC") emission factors can be relied upon. The Greenhouse Gas Protocol
recognises both sources.
Avoided emissions have been calculated on a consequential basis using the
International Financial Institution Framework for a Harmonised Approach to
Greenhouse Gas Accounting. The membership behind this approach includes the
United Nations Climate Change Secretariat, the World Bank, the European
Investment Bank, and others, in total constituting 25 financial institutions.
This framework produces an updated data set on grid emissions for many
countries, and this has been used as a key input into the estimation process.
In accordance with the framework, Private Hydrogen Assets which provide
products (e.g. fuel cells or electrolysers) take the expected lifetime
emissions of those products as sold. During HY2024 none of the Private
Hydrogen Assets were producing hydrogen. Once production commences, the annual
avoided emissions from the hydrogen produced will also be reported.
* Scope 1 emissions decreased in HY2024 after one private company
confirmed that onsite heating uses renewable electricity.
** One private company's electricity emissions were reclassified from
Scope 3 to Scope 2 in HY2024 due to changes in operational control.
*** Swift Hydrogen (formerly named NanoSUN) was excluded from
calculations, which accounts for the decrease in avoided emissions.
Interim management report
The Directors are required to provide an Interim Management Report in
accordance with the Financial Conduct Authority ("FCA") Disclosure Guidance
and Transparency Rules ("DTR").
The Directors consider that the Chair's Statement and the Investment Adviser's
Report of this Half-yearly Financial Report, provide details of the important
events which have occurred during the six months ended 30 June 2024 ("Period")
and their impact on the financial statements. The following statements on
principal and emerging risks and uncertainties, related party transactions,
going concern and the Directors' Statement of Responsibility, the Chair's
Statement and the Investment Adviser's Report together constitute the Interim
Management Report of the Company for the Period. The outlook for the Company
for the remaining six months of the year ending 31 December 2024 is discussed
in the Chair's Statement and the Investment Adviser's Report.
Details of the Private and Listed Hydrogen Assets held at the Period end are
provided above.
Risks and uncertainties
The Company's Annual Report for the year ended 31 December 2023 contains more
detail on the Company's principal risks and uncertainties, including the
Board's ongoing process to identify, and where possible mitigate, emerging
risks (pages 52 to 54). The Annual Report can be found on the Company's
website at www.hydrogenonecapitalgrowthplc.com. The Board is of the opinion
that these principal risks are equally applicable to the remaining six months
of the financial year as they were to the six months being reported on.
Related party transactions
Details of the investment management arrangements were provided in the Annual
Report. There have been no changes to the related party transactions described
in the Annual Report that could have a material effect on the financial
position or performance of the Company. Amounts payable to the Investment
Adviser and the Directors in the period are detailed in notes 5 and 12 to the
financial statements below.
Going concern
This Half-yearly Financial Report has been prepared on a going concern basis.
The Directors consider this to be the appropriate basis as they have a
reasonable expectation that the Company and Group has adequate resources to
continue in operational existence for at least 12-months from the date of this
report.
In reaching this conclusion, the Directors considered the income and expense
projections and the liquidity of the investment portfolio and considered the
impact to the Company and portfolio of investments from the economic
conditions such as higher interest rates and inflationary pressures and market
volatility arising from the ongoing conflicts in Ukraine and the Middle East.
The Company and Group continue to meet day-to-day liquidity needs through its
cash resources. As at 30 June 2024, the Company and the Group have
unrestricted cash of £1.6 million and £1.7 million (31 December 2023: £4.6
million), respectively as well as £0.3 million (31 December 2023: £2.3
million) in Listed Hydrogen Assets. The Company and Group's net assets as at
30 June 2024 were £133.5 million (31 December 2023: £132.7 million) and
total annualised expenses for the period ended 30 June 2024 were £3.1 million
(30 June 2023: £3.4 million), which represented approximately 2.4% (30 June
2023: 2.6%) of the average net assets value of the Company in the six months
to 30 June 2024 of £133.2 million (30 June 2023: £127.9 million).
The Company's share price was 51.10p representing a 50.7% discount to the Net
Asset Value (31 December 2023: discount of 51.8%).
The Directors also recognise that the continuation of the Company is subject
to the approval of shareholders at the Annual General Meeting ("AGM") in 2026,
and every fifth AGM thereafter. The Board has considered the long-term
prospects of the Company and has no reason to believe that the continuation
vote will fail.
Based on the foregoing, the Directors have adopted the going concern basis in
preparing the Financial Statements. The Directors have a reasonable
expectation that the Company and Group have adequate operational resources to
continue in operational existence for at least 12-months from the date of
approval of these Financial Statements.
Directors' Responsibility Statement
The Directors confirm to the best of their knowledge that:
· The condensed set of financial statements contained within the
Half-yearly Financial Report has been prepared in accordance with IAS 34
Interim Financial Reporting and gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and its
subsidiary undertakings;
· The Interim Management Report includes a fair review of the
information required by Disclosure and Transparency Rule 4.2.7R (indication of
important events during the first six months, their impact on the condensed
set of Financial Statements and a description of the principal risks and
uncertainties for the remaining six months of the year); and
· The Interim Financial Report includes a fair review of the
information required by Disclosure and Transparency Rule 4.2.8R (disclosure of
related party transactions and changes therein).
For and on behalf of the Board
Simon Hogan, Chair
For and on behalf of the Board
13 September 2024
Condensed parent and consolidated statement of comprehensive income
For the six months ended 30 June 2024
For the six months ended For the six months ended
30 June 2024 (unaudited)
30 June 2023 (unaudited)
Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 1,514 1,514 - 5,070 5,070
Losses on currency
movements - (186) (186) - (5) (5)
Gross investment gains - 1,328 1,328 - 5,065 5,065
Income 86 - 86 114 - 114
Total gain 86 1,328 1,414 114 5,065 5,179
Investment Adviser fee 5 (24) - (24) (82) - (82)
Other expenses 6 (599) (2) (601) (730) - (730)
Profit before finance costs and taxation (537) 1,326 789 (698) 5,065 4,367
Operating profit before taxation (537) 1,326 789 (698) 5,065 4,367
Taxation - - - - - -
Net profit for the period (537) 1,326 789 (698) 5,065 4,367
Return per Ordinary Share (basic and diluted) 10 (0.42)p 1.03p 0.61p (0.54)p 3.93p 3.39p
There is no other comprehensive income and therefore the 'Profit/(loss) for
the period' is the total comprehensive income for the period.
The total column of the above statement is the Parent and Consolidated
Statement of Comprehensive Income, including the return per Ordinary Share,
which has been prepared in accordance with IFRS. The supplementary revenue and
capital columns, including the return per Ordinary Share, are prepared under
guidance from the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing
operations.
The accompanying notes form part of these financial statements.
Condensed parent and consolidated statement of financial position
At 30 June 2024 (Unaudited)
31 December
30 June 2024 2023
(Unaudited) (Audited)
Notes £'000 £'000
Assets
Non-current assets
Investments held at fair value through profit or loss 4 131,949 128,183
Current assets
Cash and cash equivalents 1,644 4,626
Trade and other receivables 7 23 51
Total current assets 1,667 4,677
Total assets 133,616 132,860
Current liabilities
Trade and other payables 8 (157) (190)
Total liabilities (157) (190)
Net assets 133,459 132,670
Equity
Share capital 9 1,288 1,288
Share premium account 124,928 124,928
Capital reserve 11,318 9,992
Revenue reserve (4,075) (3,538)
Total equity 133,459 132,670
Net asset value per Ordinary Share 11 103.60p 102.99p
Approved by the Board of Directors and authorised for issue on 13 September
2024 and signed on their behalf by:
Simon Hogan
Chair
13 September 2024
HydrogenOne Capital Growth plc is incorporated in England and Wales with
registration number 13340859. The accompanying notes form part of these
financial statements.
Condensed parent and consolidated statement of changes in equity
For the six months ended 30 June 2024 (Unaudited)
Share
Share premium Capital Revenue
Capital account reserve reserve Total
Opening balance as at 1 January 2024 1,288 124,928 9,992 (3,538) 132,670
Net profit for the period - - 1,326 (537) 789
Closing balance as at 30 June 2024 1,288 124,928 11,318 (4,075) 133,459
For the six months ended 30 June 2023 (Unaudited)
Share
Share premium Capital Revenue
Capital account reserve reserve Total
Opening balance as at 1 January 2023 1,288 124,928 1,347 (2,210) 125,353
Net profit for the period - - 5,065 (698) 4,367
Closing balance as at 30 June 2023 1,288 124,928 6,412 (2,908) 129,720
The accompanying notes form part of these financial statements.
Condensed parent and consolidated statement of cash flows
For the six months ended 30 June 2024
For the six For the six
months ended months ended
30 June 2024 30 June 2023
(Unaudited) (Unaudited)
£'000 £'000
Cash flows from operating activities
Income 86 114
Management expenses (625) (812)
Foreign exchange losses (186) (5)
Decrease in trade and other receivables 28 26
Increase/(decrease) in trade and other payables (33) 32
Net cash flow used in operating activities (730) (645)
Cash flows from investing activities
Purchase of investments (3,962) (9,103)
Sale of investments 1,710 112
Net cash flow used in investing activities (2,252) (8,991)
Net cash flow from financing activities - -
Decrease in cash and cash equivalents (2,982) (9,636)
Cash and cash equivalents at start of period 4,626 18,192
Cash and cash equivalents at end of period 1,644 8,556
The accompanying notes form part of these financial statements.
Notes to the parent and consolidated financial statements
1. General information
Company information
HydrogenOne Capital Growth plc (the "Company" or "Parent") was incorporated in
England and Wales on 16 April 2021 with registered number 13340859 as a public
company limited by shares and is an investment company within the terms of
Section 833 of the Companies Act 2006 (the "Act"). The Company is listed and
began trading on the Main Market of the London Stock Exchange and was admitted
to the premium segment of the Official List on 30 July 2021 (the "IPO"). The
Company has applied for and been accepted as an approved investment trust
under sections 1158 and 1159 of the Corporation Tax Act 2010 and Part 2
Chapter 1 of Statutory Instrument 2011/2999.
FundRock Management Company (Guernsey) Limited acts as the Company's
Alternative Investment Fund Manager ("AIFM").
Apex Listed Companies Services (UK) Limited (the "Company Secretary and
Administrator") provides administrative and company secretarial services to
the Company.
The Company's Investment Adviser is HydrogenOne Capital LLP.
The Company's registered office is 6th Floor, 125 London Wall, London, EC2Y
5AS.
Investment objective
The Company's investment objective is to deliver an attractive level of
capital growth by investing, directly or indirectly, in a diversified
portfolio of hydrogen and complementary hydrogen focused assets whilst
integrating core environmental, social and governance ("ESG") principles into
its decision making and ownership process.
Company structure
The Company makes its investment in unquoted Hydrogen Assets ("Private
Hydrogen Assets") through HydrogenOne Capital Growth Investments (1) LP (the
"Limited Partnership"), in which the Company is the sole Limited Partner. The
Limited Partnership is registered as a private fund limited partnership in
England and Wales under the Limited Partnerships Act 1907 with registered
number LP021814. The Limited Partnership has been established pursuant to a
Limited Partnership Agreement dated 5 July 2021 as amended and restated on 26
November 2021 (the "Limited Partnership Agreement") in order to make
investments pursuant to the investment policy of the Limited Partnership.
The Limited Partnership's investment policy and restrictions are consistent
with the Company's investment policy and restrictions for Private Hydrogen
Assets.
The General Partner of the Limited Partnership is HydrogenOne Capital Growth
(GP) Limited (the "General Partner"), a wholly owned subsidiary of the
Company. The General Partner was incorporated in England and Wales on 19 May
2021 with registered number 13407844. The General Partner undertakes the
responsibility for the management, operation and administration of the
business and affairs of the Limited Partnership. The General Partner's Profit
Share for each accounting period shall be an amount equal to 1.5% per annum of
the prevailing NAV of the Limited Partnership, which shall be allocated to the
General Partner as a first charge on the profits of the Limited Partnership.
For so long as the Company is the sole Limited Partner, the General Partner's
Profit Share shall be allocated and distributed to the Company rather than the
General Partner.
The carried interest partner of the Limited Partnership is HydrogenOne Capital
Growth (Carried Interest) LP (the "Carried Interest Partner") which, in
certain circumstances, will receive carried interest on the realisation of
Private Hydrogen Assets by the Limited Partnership. The Carried Interest
Partner has been set up for the benefit of the principals of the Investment
Adviser.
The Company may also make investment in Private Hydrogen Assets through
HydrogenOne Capital Growth Investments (1A) LP ("Limited Partnership 1A") in
which the Limited Partnership is the sole Limited Partner. The Limited
Partnership 1A is registered as a private fund limited partnership in England
and Wales under the Limited Partnerships Act 1907 with registered number
LP023743. Limited Partnership 1A has been established pursuant to a Limited
Partnership Agreement dated 19 June 2024 (the "Limited Partnership Agreement
1A") in order to make investments pursuant to the investment policy of the
Limited Partnership. 1A Limited Partnership IA's investment policy and
restrictions are consistent with the Company's investment policy and
restrictions for Private Hydrogen Assets.
The General Partner of Limited Partnership 1A is HydrogenOne Capital Growth
Investments (1A) GP LLP (the "General Partner 1A"), a wholly owned subsidiary
of the Company. The General Partner 1A was incorporated in England and Wales
on 3 June 2024 with registered number OC452544. The General Partner 1A
undertakes the responsibility for the management, operation and administration
of the business and affairs of Limited Partnership 1A. All income and profits
of Limited Partnership 1A (if any) shall be allocated and distributed to the
Limited Partner after deducting a prior profit amount of £100 per annum to
the General Partner 1A.
Private Hydrogen Assets
The Company invests via Limited Partnerships in Private Hydrogen Assets, which
may be operational companies or hydrogen projects. Investments are mainly in
the form of equity, although investments may be made by way of debt and/or
convertible securities. The Company may acquire a mix of controlling and
non-controlling interests in Private Hydrogen Assets, however the Company
invests principally in non-controlling positions (with suitable minority
protection rights to, inter alia, ensure that the Private Hydrogen Assets are
operated and managed in a manner that is consistent with the Company's
investment policy).
The Company acquires Private Hydrogen Assets via Limited Partnerships,
directly or by way of holdings in special purpose vehicles or intermediate
holding entities (including successor limited partnerships established on
substantially the same terms as the Limited Partnership) or, if the Company is
considered a 'feeder fund' under the Listing Rules, other undertakings advised
by the Investment Adviser and, in such circumstances, the investment policy
and restrictions will also be applied on a look-through basis and such
undertaking(s) will also be managed in accordance with the Company's
investment policy.
Listed Hydrogen Assets
The Company also invests directly in quoted or traded Hydrogen Assets, which
are predominantly equity securities but may also be corporate debt and/or
other financial instruments ("Listed Hydrogen Assets"). The Company has the
ability to invest in Listed Hydrogen Assets in any market or country with a
market capitalisation (at the time of investment) of at least US$100 million.
The Company's approach is to be a long-term investor and will not ordinarily
adopt short-term trading strategies.
Liquidity reserve
During the initial Private Hydrogen Asset investment period after a capital
raise and/or a realisation of a Private Hydrogen Asset, the Company intends to
allocate the relevant net proceeds of such capital raise/realisation to cash
(in accordance with the Company's cash management policy) and/or additional
Listed Hydrogen Assets and related businesses pending subsequent investment in
Private Hydrogen Assets (the ''Liquidity Reserve'').
The Company anticipates holding cash to cover the near-term capital
requirements of the pipeline of Private Hydrogen Assets and in periods of high
market volatility.
2. Basis of preparation and accounting policies
The principal accounting policies are set out below:
Reporting entity
These Parent and Consolidated Financial Statements (the "Financial
Statements") present the results of both the Parent; and the Parent and the
General Partner and General Partner 1A (together referred to as the "Group").
At 30 June 2024, the statement of financial position of both the General
Partner and General Partner 1A consisted each of issued share capital and
corresponding share capital receivable in the amount of £1. The General
Partners had no income, expenditure or cash flows for the period.
Due to the immaterial balances of the General Partners there is no material
difference between the results of the Parent and the results of the Group. As
a result, the Financial Statements as presented represent both the Parent's
and the Group's financial position, performance, and cash flows.
Basis of accounting
The Financial Statements have been prepared in accordance with UK-adopted
international accounting standards ("IFRS") and the applicable legal
requirements of the Companies Act 2006.
The Financial Statements have also been prepared as far as is relevant and
applicable to the Company and Group in accordance with the Statement of
Recommended Practice ("SORP") issued by the Association of Investment
Companies ("AIC") in July 2022.
The Financial Statements are prepared on the historical cost basis, except for
the revaluation of financial instruments measured at fair value through profit
or loss.
Fair value is the price that would be received on sale of an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date, regardless of whether that price is directly observable
or estimated using another valuation technique. In estimating the fair value
of an asset or liability, the Company and Group take into account the
characteristics of the asset or liability if market participants would take
those characteristics into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/or disclosure purposes in
these Financial Statements is determined on such a basis.
The Financial Statements are presented in Pounds Sterling because that is the
currency of the primary economic environment in which the Company and Group
operate.
The accounting policies applied in these Financial Statements are consistent
with those applied in the last Annual Audited Financial Statements for the
year ended 31 December 2023. These condensed financial statements do not
include all information and disclosures required in the annual financial
statements and should be read in conjunction with the Company's annual
financial statements as of 31 December 2023. The audited annual accounts for
the year ended 31 December 2023 have been delivered to Companies House and
the audit report thereon was unqualified.
Going concern
Having reassessed the principal risks, the Directors considered it appropriate
to adopt the going concern basis of accounting in preparing these Financial
Statements. Details of the Directors' assessment of the going concern status
of the Company and Group, which considered the adequacy of resources and the
impacts of economic conditions and market volatility arising from the
conflicts in Ukraine and the Middle East are given above.
Critical accounting judgements, estimates and assumptions
There have been no changes to the critical accounting judgements estimates and
assumptions from those applied in the Company's Audited Annual Financial
Statements for the year ended 31 December 2023.
Comparatives
Comparative information is included for the six months ended 30 June 2023 and
as at 31 December 2023.
3. Segmental reporting
The Board has considered the requirements of IFRS 8 - 'Operating Segments'.
The Company has entered into an Investment Advisory Agreement with the
Investment Adviser under which the Investment Adviser is responsible for the
management of the Company's investment portfolio, subject to the overall
supervision of the Board of Directors. Subject to its terms and conditions,
the Investment Advisory Agreement requires the Investment Adviser to manage
the Company's investment portfolio in accordance with the Company's investment
guidelines as in effect from time to time, including the authority to purchase
and sell investments and to carry out other actions as appropriate to give
effect thereto. However, the Board retains full responsibility to ensure that
the Investment Adviser adheres to its mandate. Moreover, the Board is fully
responsible for the appointment and/or removal of the Investment Adviser.
Accordingly, the Board is deemed to be the 'Chief Operating Decision Maker' of
the Company.
The Directors are of the opinion that the Company is engaged in a single
segment of business being investment into the hydrogen focused investments.
Segment information is measured on the same basis as that used in the
preparation of the Company's Financial Statements.
4. Investments held at fair value through profit or loss
(a) Summary of valuation
30 June 2024 31 December 2023
As at £'000 £'000
Investments held at fair value through profit or loss
Listed Hydrogen Assets 314 2,322
Limited Partnership 131,635 125,861
Closing valuation of financial assets at fair value through profit or loss 131,949 128,183
(b) Movements in valuation
Year ended
Six months ended 31 December
30 June 2024 2023
£'000 £'000
Opening valuation of financial assets at fair value through profit or loss 128,183 106,673
Opening unrealised gain on Investments (10,606) (1,426)
Opening cost of financial assets at fair value through profit or loss 117,577 105,247
Additions, at cost - Listed Hydrogen Assets - 74
Additions, at cost - Limited Partnership 3,962 12,398
Disposals at cost - Listed Hydrogen Assets (4,986) (142)
Cost of financial assets at fair value through profit or loss at the end of 116,553 117,577
the period/year
Unrealised losses on investments - Listed Hydrogen Assets (2,321) (5,299)
Unrealised gains on investments - Limited Partnership 17,717 15,905
Closing valuation of financial assets at fair value through profit or loss 131,949 128,183
(c) Gain/(loss) on investments
Year ended
Six months ended 31 December
30 June 2024 2023
£'000 £'000
Movement in unrealised losses - Listed Hydrogen Assets 2,978 (1,277)
Movement in unrealised gains - Limited Partnership 1,812 10,457
Realised losses on investments - Listed Hydrogen Assets (3,276) (30)
Total gain on investments 1,514 9,150
Under IFRS 13 'Fair Value Measurement', an entity is required to classify
investments using a fair value hierarchy that reflects the significance of the
inputs used in making the measurement decision.
The following shows the analysis of financial assets recognised at fair value
based on:
Level 1
The unadjusted quoted price in an active market for identical assets or
liabilities that the entity can access at the measurement date.
Level 2
Inputs other than quoted prices included within Level 1 that are observable
(i.e. developed using market data) for the asset or liability, either directly
or indirectly.
Level 3
Inputs are unobservable (i.e. for which market data is unavailable) for the
asset or liability.
Transfers between levels of the fair value hierarchy are recognised at the end
of the reporting period during which the change has occurred. There have been
no transfers between levels during the period ended 30 June 2024. (December
2023: no transfers).
The classification of the Company and Group's investments held at fair value
through profit or loss is detailed in the table below:
30 June 2024
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed Hydrogen Assets 314 - - 314
Limited Partnership - - 131,635 131,635
Total 314 - 131,635 131,949
31 December 2023
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed Hydrogen Assets 2,322 - - 2,322
Limited Partnership - - 125,861 125,861
Total 2,322 - 125,861 128,183
The Company and Group's Level 3 investment is the investment in the Limited
Partnership. The NAV of the Limited Partnership as of 30 June 2024 is
£131,635,000 (31 December 2023: £125,861,000). The movement on the Level 3
investments during the period is shown below:
31 December
30 June 2024 2023
£'000 £'000
Opening balance 125,861 103,006
Investment in Limited Partnership 3,962 12,398
Unrealised gains on investment in Limited Partnership 1,812 10,457
Closing balance 131,635 125,861
Look-through financial information
The NAV of the Limited Partnership consists of the fair value of its Private
Hydrogen Assets and the carrying value of its assets and liabilities. At the
period end, the Limited Partnership held nine Private Hydrogen Assets (31
December 2023: ten).
The following table reconciles the fair value of the Private Hydrogen Assets
and the NAV of the Limited Partnership.
31 December
30 June 2024 2023
£'000 £'000
Investment in Private Hydrogen Assets 131,638 126,206
Plus/(minus): net current assets/(liabilities) (3) (345)
NAV of the Limited Partnership 131,635 125,861
The Level 3 Private Hydrogen Assets are valued by the Investment Adviser using
the valuation techniques as outlined below.
At 30 June 2024, the valuations of the Limited Partnership's underlying
investments in Private Hydrogen Assets were determined as follows:
Name Country of Value of Primary Significant unobservable inputs Range input
valuation
Incorporation Investment
technique
£'000
Sunfire GmbH Germany 28,369 DCF Discount rates 11.3-12.3%
Elcogen Group plc United Kingdom 26,211 DCF Discount rates 12.5-13.1%
HiiROC Limited United Kingdom 22,957 DCF Discount rates 13.0-13.7%
Strohm Holding BV Netherlands 13,207 Weighted Discount rates 13.7-14.3%
DCF and Price
of Recent
Investment
Weighting between Price (22)%
of Recent Investment and
DCF valuation(1)
Bramble Energy Limited United Kingdom 12,552 DCF Discount rates 15.1-15.8%
HH2E AG Germany 12,300 DCF Discount rates 12.0%; and
(project SPVs & Company) 13.7-14.7%
Cranfield Aerospace United 12,169 DCF Discount rates 17.0-17.7%
Solutions Limited Kingdom
GEN2 Energy AS Norway 3,455 DCF Discount rates 12.0%; and
(project SPVs & Company) 16.4-17.3%
Swift Hydrogen Limited UK 418 Net Assets n/a n/a
1. This is the effective discount or premium to the full DCF
valuation, as a result of application of the weighted valuation in line with
the valuation methodology. A negative percentage denotes that the weighted
valuation is at a discount to the full DCF valuation; whilst a positive
percentage denotes that the weighted valuation is at a premium to the full DCF
valuation.
At 31 December 2023, the valuations of the Limited Partnership's underlying
investments in Private Hydrogen Assets were determined as follows:
Value of Primary
Country of Investment valuation
Name Incorporation £'000 technique Significant unobservable inputs Range input
Sunfire GmbH Germany 27,068 DCF Discount rates 11.3%-12.4%
Elcogen Group plc United 24,430 DCF Discount rates 13.1%-13.9%
Kingdom
Strohm Holding BV Netherlands 19,719 DCF Discount rates 14.4%-15.4%
HiiROC Limited United 13,701 DCF Discount rates 13.8%-14.9%
Kingdom
Cranfield Aerospace Solutions Limited United 11,870 DCF Discount rates 17.5%-18.6%
Kingdom
Bramble Energy Limited United 10,621 DCF Discount rates 16.0%-17.1%
Kingdom
HH2E AG Germany 6,971 DCF Discount rates (project SPVs & 12.0%; and
Company) 16.5%-17.6%
NanoSUN Limited United 5,428 Probability Discount rates applied in DCF 15.3%-15.9%
Kingdom weighted
approach
incorporating
DCF, indicative
offers and net
assets*
Net Assets n/a
Weighting 10%-50%
GEN2 Energy AS Norway 4,443 DCF Discount rates (project SPVs & Company) 12.0%; and 16.7%-17.6%
HH2E Werk Thierbach GmbH Germany 1,955 Loan principal and accrued interest N/a N/a
* In deriving the fair value of NanoSUN a probability weighted
approach was applied whereby a valuation for the investment was derived from
each technique (DCF, indicative offers and assets), each of which represented
management's assessment of the fair value for the investment in the reasonable
possible scenarios that may have transpired, as of the valuation date. A
percentage likelihood (aggregating to 100% across each of the three
techniques) was then applied to each of these valuations, which represented
management's view of the probability of each scenario transpiring, as of the
valuation date. The range of inputs disclosed represent the lowest and highest
discreet percentages applied to the three scenarios.
The following table shows the Directors best estimate of the sensitivity of
the Level 3 Private Hydrogen Assets to changes in the principle unobservable
input, with all other variables held constant.
Effect on fair value of investments £'000
Unobservable input Possible reasonable change in input 30 June 2024 31 December 2023
Discount rates applied in full DCF valuation +1% (5,526) (7,767)
-1% 6,056 8,584
+/- 10% weighting to DCF n/a 968/(968)
+/- 10% weighting to indicative offers n/a 124/(124)
Weighting between DCF, indicative offers and Net Asset valuation +/- 10% weighting to Net Assets n/a (1,092)/1,092
Weighting between Price of Recent Investment and full DCF Valuation +/- 15% weighting to DCF (821)/821 n/a
The European Central Bank ('ECB') and the Bank of England ('BOE') base rates
at 30 June 2024 were 4.25% and 5.25% respectively. We anticipate that the base
rates will ease and fall (based on independent research) reaching 2.50% for
ECB and 3.00% for BOE by end of 2025. Since long term gilt yields already
factor in long term forecasts, we have performed sensitivities of +/- 1% on
the discount rate assumptions for any shock events. At 31 December 2023, the
ECB and the BOE base rates were 4.5% and 5.25% respectively. We anticipate
that the terminal base rate would ease and fall (based on independent
research) reaching 2.5% for ECB and 3.0% for BOE and as such, performed
sensitivities of +/- 1% on the discount rate assumptions.
For the period ended 30 June 2024, where noted in the table above, valuations
are weighted towards the full DCF valuation based on the time since the price
of recent investment until the full DCF valuation is applied. We have applied
a sensitivity of +/- 15% weighting to DCF as this is deemed a reasonable
assumption by which the weighting may move on a quarterly basis.
For the year ended 31 December 2023, the NanoSUN Limited valuation was
weighted between DCF, indicative offers and Net assets based on the expected
likelihood of each scenario occurring. We applied a sensitivity of +/- 10%
weighting to each scenario, with the movement being shared equally with the
remaining two scenarios, as this was deemed to be a reasonable possible shift
in the scenario weightings as of the valuation date.
For those investments that have been fair valued using the price of a recent
investment based on unadjusted third-party pricing information, the Company is
not required to disclose any quantitative information regarding the
unobservable inputs as they have not been developed by the Company and are not
reasonably available to the Company.
In April 2024, the Company agreed to a restructuring of HH2E, ahead of planned
material third party fund raising for green hydrogen projects in Germany. As
part of this transaction the Company exchanged its development rights in five
project SPVs, including the Thierbach SPV, for equity in HH2E in a non-cash
transaction for the Company. Under the terms of the transaction the Company
may be required to contribute future investments in the project SPVs up to a
maximum value of £3.9m to HH2E as deferred consideration for the exchange of
development rights. The timing and total quantum of SPV shares to be
contributed in settlement of this consideration is still to be confirmed.
5. Investment adviser fee
For the six months ended 30 June 2024 For the six months ended 30 June 2023
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment Adviser fee 24 - 24 82 - 82
At 30 June 2024 no fees were payable to the Investment Adviser in respect of
the Investment Adviser fee (31 December 2023: nil).
Investment Adviser fee
The Company has entered into an Investment Adviser Agreement dated 5 July 2021
between the Company, the AIFM and the Investment Adviser (the "Investment
Adviser Agreement"), pursuant to which the Investment Adviser has been given
responsibility for investment advisory services in respect of any Private
Hydrogen Assets the Company invests in directly and the Listed Hydrogen Assets
(including Listed Hydrogen Assets forming part of the Liquidity Reserve and
uninvested cash) in accordance with the Company's investment policy, subject
to the overall control and supervision of the Board and the AIFM.
Under the Investment Adviser Agreement, the Investment Adviser receives from
the Company, quarterly in advance, an advisory fee, details of which are given
in the Annual Report and which have remained unchanged during the Period.
General Partner's priority profit share
Under the Limited Partnership Agreement, the General Partner of the Limited
Partnership shall be entitled to a General Partner's Profit Share ("GPS"). The
GPS for each accounting period shall be an amount equal to 1.5% of the
prevailing NAV of the Limited Partnership. For so long as the Company is the
sole limited partner of the Limited Partnership, the GPS shall be distributed
to the Company rather than the General Partner. The Company is currently the
sole limited partner of the Limited Partnership. Therefore, under the
Investment Adviser Agreement, the investment adviser fee in relation to the
Private Hydrogen Assets held by the Limited Partnership is settled by the
Company which for the period totalled £960,424 (30 June 2023: £803,722).
During the period the Limited Partnership did not call any GPS from the
Company as the net effect of the calling and distributing GPS from/to the
Company is £nil (30 June 2023: £nil).
Carried Interest Partner Fees
Pursuant to the terms of the Limited Partnership Agreement dated 5 July 2021
as amended and restated on 26 November 2021 (the "Limited Partnership
Agreement"), the Carried Interest Partner is, subject to the limited partners
of the Limited Partnership receiving an aggregate annualised 8% realised
return (i.e. the Company and, in due course, any additional co-investors),
entitled to a carried interest fee in respect of the performance of the
Private Hydrogen Assets.
Subject to certain exceptions, the Carried Interest Partner will receive, in
aggregate, 15% of the net realised cash profits from the Private Hydrogen
Assets held by the Limited Partnership once the limited partners of the
Limited Partnership (i.e. the Company and, in due course, any additional
co-investors) have received an aggregate annualised 8% realised return. This
return is subject to a 'catch-up' provision in the Carried Interest Partner's
favour. Any realised or unrealised carried interest fee paid or payable to the
Carried Interest Partner is reflected through the NAV of the Limited
Partnership. During the period no carried interest fees (31 December 2023:
£403,343) were accrued as payable to the Carried Interest Partner.
20% of any carried interest received (net of tax) will be used by the
principals of the Investment Adviser to acquire Ordinary Shares in the market.
Any such acquired shares will be subject to a 12-month lock-up from the date
of purchase.
6. Other expenses
For the six For the six
months ended months ended
30 June 2024 30 June 2023
£'000 £'000
Administration & Secretarial Fees 96 105
AIFM Fees 57 54
Directors' Fees 97 96
Custodian Charges 25 25
Brokers Fees 30 36
Registrar's Fees 15 8
Website Fees 18 25
Legal Fees 12 13
LSE Fees 9 16
Audit Fees 84 77
D & O Insurances 22 24
PR & Marketing 87 152
Printing Fees 33 32
Other expenses 14 67
Total revenue expenses 599 730
Expenses charged to capital:
Capital transaction costs 2 -
Total expenses 601 730
During the period to 30 June 2024, no non-audit fees were paid to KPMG LLP UK.
During the period to 30 June 2023, the auditors received £12,000 (including
VAT of £2,000) for non-audit services in respect of the Company's equity
raise, which were treated as a capital expense and included in 'share issue
costs' disclosed in the Statement of Changes in Equity. This service is
required by law or regulation and is therefore a permissible non-audit service
under the FRC Ethical Standard.
7. Trade and other receivables
As at As at
30 June 2024 31 December
£'000 2023
£'000
Prepayments 13 41
Other receivables 10 10
Total 23 51
8. Trade and other payables
As at As at
30 June 2024 31 December
£'000 2023
£'000
Amounts falling due within one year:
Accrued expenses 157 190
Total 157 190
9. Share capital
As at 30 June 2024 As at 31 December 2023
Allotted, issued and fully paid Ordinary Shares of 1p each: No. of shares Nominal value of shares (£) No. of shares Nominal value of shares (£)
Brought forward 128,819,999 1,288,199.99 128,819,999 1,288,199.99
Closing balance 128,819,999 1,288,199.99 128,819,999 1,288,199.99
During the six months ended 30 June 2024 and the year ended 31 December 2023,
no shares were issued or repurchased.
Each Ordinary Share held entitles the holder to one vote. All shares carry
equal voting rights and there are no restrictions on those voting rights.
10. Return per Ordinary Share
Return per share is based on the weighted average number of Ordinary Shares in
issue during the six months ended 30 June 2023 of 128,819,999.
For the six months ended For the six months ended
30 June 2024 30 June 2023
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Net profit for the period (£'000) (537) 1,326 789 (698) 5,065 4,367
Return per Ordinary Share (0.42)p 1.03p 0.61p (0.54)p 3.93p 3.93p
There is no dilution to return per share as the Company has only Ordinary
Shares in issue.
11. Net asset value per Ordinary Share
As at As at
30 June 2024 31 December 2023
£'000 £'000
Net Asset Value (£'000) 133,459 132,670
Ordinary Shares in issue 128,819,999 128,819,999
NAV per Ordinary Share 103.60p 102.99p
There is no diluted Net Asset Value per share as the Company has only Ordinary
Shares in issue.
12. Related party transactions and material contracts
Directors
During the period, fees were payable to the Directors at an annual rate of
£68,250 to the Chair, £57,750 to the Chair of the Audit and Risk and
Valuation Committees and £47,250 to the Chair of the Management Engagement
and Remuneration Committees. Mr Bucknall is not remunerated for his role as a
Non-Executive Director. These fees were effective from the 1 January 2024.
Details of the Directors remuneration paid during the period is given in note
6. At the period end, the Directors had the following holdings in the Company:
Ordinary Shares at Ordinary Shares at
30 June 2024 31 December 2023
Simon Hogan 40,000 40,000
Afkenel Schipstra 10,100 10,100
Abigail Rotheroe 10,000 10,000
David Bucknall - -
Details of the Company's other material contracts, which remain applicable at
30 June 2024, are given in the Annual Report in note 14 to the Financial
Statements.
13. Subsidiary and related entities
Subsidiary
The Company owns 100% of HydrogenOne Capital Growth (GP) Limited and
HydrogenOne Capital Growth Investments (1A) GP LLP at 30 June 2024 and owned
100% of HydrogenOne Capital Growth (GP) Limited at 31 December 2023.
Subsidiary name Effective ownership Country of ownership Principal activity Issued share capital Registered
address
HydrogenOne Capital Growth (GP) Limited 100% United Kingdom General partner of HydrogenOne Capital Growth Investments (1) LP £1 6th Floor, 125 London Wall, London, EC2Y 5AS
HydrogenOne Capital Growth Investments (1A) GP LLP 100% United Kingdom General partner of HydrogenOne Capital Growth Investments (1A) LP £1 6th Floor, 125 London Wall, London, EC2Y 5AS
Related entities
The Company holds Private Hydrogen Assets through its investment in the
Limited Partnership, which has not been consolidated as a result of the
adoption of IFRS 10: Investment entities exemption to consolidation. There are
no cross guarantees amongst related entities. Below are details of the
unconsolidated Private Hydrogen Asset held through the Limited Partnership.
30 June 2024
Name Purpose of the entity Country of Incorporation Value of investment Registered
£'000
address
Sunfire GmbH Electrolyser producer Germany 28,369 Gasanstaltstraße 2
01237 Dresden,
Germany
HiiROC Limited Supplier of clean hydrogen production technology United Kingdom 26,211 22 Mount Ephraim,
Tunbridge Wells, Kent,
TN4 8AS
Elcogen Group plc Solid oxide fuel cell supply United Kingdom 22,957 Highdown House,
Yeoman Way, Worthing,
West Sussex,
BN99 3HH
Strohm Holding BV Supplier of thermoplastic composite pipe The Netherlands 13,207 Monnickendamkade 1,
1976 EC Ijmuiden
The Netherlands
Bramble Energy Limited Printed Circuit Board fuel cell solutions United Kingdom 12,552 6 Satellite Business
Village, Fleming Way,
Crawley,
RH10 9NE
HH2E AG Supplier of green electrolysis and energy storage facilities Germany 12,300 HRB 167243, Kaiser-
Wilhelm-Straße 93,
20355 Hamburg
Germany
Cranfield Aerospace Solutions Limited Aviation design and maintenance United Kingdom 12,169 Hanger 2, Cranfield
Airport, Cranfield,
Bedfordshire,
MK43 0AL
GEN2 Energy AS Green Hydrogen development Norway 3,455 Raveien 205, 3184 Borre,
Norway
Swift Hydrogen Limited Supplier of mobile hydrogen storage and refueling systems United Kingdom 418 6th Floor 125 London Wall, London, EC2Y 5AS
31 December 2023
Name Purpose of the entity Country of Incorporation Value of investment £'000 Registered address
Sunfire GmbH Electrolyser producer Germany 27,068 Gasanstaltstraße 2 01237
Dresden, Germany
Elcogen Group plc Solid oxide fuel cell supply United Kingdom 24,430 Highdown House,
Yeoman Way, Worthing,
West Sussex, BN99 3HH
Strohm Holding BV Supplier of thermoplastic composite pipe The Netherlands 19,719 Monnickendamkade 1,
1976 EC Ijmuiden
The Netherlands
HiiROC Limited Supplier of clean hydrogen production technology United Kingdom 13,701 22 Mount Ephraim,
Tunbridge Wells, Kent,
TN4 8AS
Cranfield Aerospace Solutions Limited Aviation design and maintenance United Kingdom 11,870 Hanger 2, Cranfield
Airport, Cranfield,
Bedfordshire, MK43 0AL
Bramble Energy Limited Printed Circuit Board fuel cell solutions United Kingdom 10,621 6 Satellite Business
Village, Fleming Way,
Crawley, England, RH10
9NE
HH2E AG Supplier of green electrolysis and energy storage facilities Germany 6,971 HRB 167243, Kaiser-
Wilhelm-Straße 93,
20355 Hamburg
Germany
NanoSUN Limited Supplier of mobile hydrogen storage and refueling systems United Kingdom 5,428 Abraham Heights Farm,
Westbourne Road,
Lancaster, LA1 5EF
GEN2 Energy AS Green Hydrogen development Norway 4,443 Raveien 205, 3184
Borre, Norway
HH2E Werk Thierbach GmbH Supplier of green electrolysis and energy storage facilities Germany 1,955 HRB 167243, Kaiser-
Wilhelm-Straße 93,
20355 Hamburg
Germany
The maximum exposure to loss from the unconsolidated entities is the carrying
amount of the financial assets held.
During the period the Company did not provide financial support and has no
intention of providing financial or other support to the subsidiary and the
unconsolidated Private Hydrogen Assets held through the Limited Partnership.
14. Status of this report
These Half-yearly Financial Statements are not the Company's statutory
accounts for the purposes of section 434 of the Companies Act 2006. They are
unaudited. The unaudited Half-yearly Financial Report will be made available
to the public at the registered office of the Company.
The report will also be available in electronic format on the Company's
website https://hydrogenonecapitalgrowthplc.com/
The information for the year ended 31 December 2023 has been extracted from
the last published audited financial statements, unless otherwise stated. The
audited financial statement has been delivered to the Registrar of Companies.
KPMG Channel Islands Limited reported on those accounts and their report was
unqualified, did not draw attention to any matters by way of emphasis and did
not contain a statement under sections 498(2) or 498(3) of the Companies Act
2006.
The Half-yearly Financial Report was approved by the Board on 13 September
2024.
Alternative performance measures ("APM")
APMs are often used to describe the performance of investment companies
although they are not specifically defined under IFRS. APM calculations for
the Company are shown below.
(Discount)/Premium
The amount, expressed as a percentage, by which the share price is less than/
more than the Net Asset Value per Ordinary Share.
31 December
30 June 2024 2023
NAV per Ordinary Share (pence) a 103.60 102.99
Share price (pence) b 53.50 49.65
Discount (b÷a)-1 (48.4)% (51.8)%
Ongoing charges
A measure, expressed as a percentage of average net assets during the period,
of the regular, recurring annual costs of running an Investment Company.
For the six months ended 30 June 2024 2023
Average NAV a 133,179,440 127,965,802
Annualised expenses b 3,134,547 3,358,733
Ongoing charges (b÷a) 2.36% 2.62%
The ongoing charges percentage is on a consolidated basis and therefore takes
into consideration the expenses of the Limited Partnership as well as the
Company and is calculated in accordance with the methodology set out by the
AIC.
The recurring expenses of the Company and Limited Partnership charged in the
six months to 30 June 2024 have been annualised for the ongoing charges
calculation.
Total return
A measure of performance that includes both income and capital returns. This
takes into account capital gains and reinvestment of dividends paid out by the
Company into the Ordinary Shares of the Company on the ex-dividend date.
Six months to 30 June 2024 Page Share price (p)(1) NAV(2)
Opening at 1 January 2024 a n/a 49.65 102.99
Closing at 30 June 2024 b 3 53.50 103.60
Total return (b÷a)-1 7.8% 0.6%
1 Share price total return is based on an opening share price of
49.65p.
2 NAV total return is based on an opening NAV 102.99p per Ordinary
Share.
n/a = not applicable.
Notes
For further information, please visit www.hydrogenonecapitalgrowthplc.com
(http://www.hydrogenonecapitalgrowthplc.com/) or contact:
HydrogenOne Capital LLP - Investment Adviser +44 20 3830 8231
JJ Traynor/Richard Hulf
Barclays Bank PLC - Corporate Broker +44 20 7623 2323
Dion Di Miceli BarclaysInvestmentCompanies@barclays.com
Stuart Muress
Buchanan Communications - Financial PR Tel: +44 (0) 20 7466 5000
Henry Harrison-Topham Email: HGEN@buchanancomms.co.uk (mailto:HGEN@buchanancomms.co.uk)
Henry Wilson
George Beale
About HydrogenOne Capital Growth plc:
HydrogenOne is the first London-listed hydrogen fund investing in clean
hydrogen for a positive environmental impact. The Company was launched in 2021
with an investment objective to deliver an attractive level of capital growth
by investing in a diversified portfolio of hydrogen and complementary hydrogen
focussed assets. INEOS Energy is a strategic investor in HydrogenOne. The
Company is listed on the London Stock Exchange's main market (ticker code:
HGEN). The Company is an Article 9 climate impact fund with an ESG policy
integrated in investment decisions and asset monitoring.
The Company's Investment Adviser, HydrogenOne Capital LLP (FRN: 954060), is
an appointed representative of Thornbridge Investment Management LLP (FRN:
713859) which is authorised and regulated by the Financial Conduct Authority.
END
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