Canada Pension Plan Investment Board (CPP Investments) and hydrogen project developer Power2X have announced a long-term investment partnership aimed at advancing Power2X’s role in the global clean energy transition.
Under the terms of the deal, CPP Investments will acquire a majority interest in Power2X.
The partnership plans to invest an initial €130m to accelerate the growth of Power2X as a development platform and fund green molecule projects.
The investment supports Power2X’s mission to become a long-term developer, owner, and operator of next-generation energy assets with a focus on green hydrogen and other clean molecules such as green methanol and ammonia. The company has a diverse portfolio of projects that are initially prioritising European demand.
Bruce Hogg, managing director and head of the C$32bn (€22.3bn) sustainable energies business at CPP Investments, said: “Investing in Power2X is fully aligned with our ambition to play a leading role in the energy transition. The need for industrial decarbonisation is increasing rapidly, and green molecules have a vital role to play in meeting these demands, whether to create alternative fuels, hydrogen, or renewable feedstocks such as green ammonia.
”With Power2X’s development capabilities and CPP Investments’ flexible capital and sustainable energies expertise, this partnership enables us to invest in next-generation energy assets at an industrial scale with long-term business partners.”
Occo Roelofsen, CEO, Power2X, said: “In 2020, we founded Power2X to have a lasting impact on the world’s energy transition, by focusing on green and clean molecules. Working with CPP Investments will enable us to accelerate our ambition to become a leader in green molecules and, in doing so, continue on our journey as a long-term and serious player in this critical arena of global sustainability.
”Announcing this partnership with CPP Investments today shows how far our team have come in a very short time. We are actively participating in hydrogen projects, such as ErasmoPower2X, a €1bn solar and hydrogen plant, and MadoquaPower2X, a €1bn industrial-scale hydrogen and green ammonia project.”
The term ‘green molecules’ refers to the application of green hydrogen and its derivatives, including green ammonia and green methanol, to decarbonise non-power, hard-to-abate industrial activities. These green molecules can act as direct replacements for processed feedstocks or transportation and heating fuels.
To read the latest edition of the latest IPE Real Assets magazine click here.
