A green hydrogen joint venture has been formed with UK-based renewables producer Renewable Energy Systems by Octopus Renewables Infrastructure Trust plc and another fund administered by Octopus Energy Generation.
To deliver green hydrogen electrolysis projects in England, Scotland, and Wales to industrial customers, the venture, known as HYRO Energy Ltd. By 2030, it plans to create an electrolyser capacity of roughly 700 MW.
According to ORIT, it has decided to invest up to $5 million and 6.2 minutes in HYRO. Its sister fund Sky (ORI SCSp) is also investing under the same conditions, and each will hold a 25% stake in the company. The funds will be granted preferred rights to fund the building of the electrolyser projects and exclusive rights to offer money for further development.
Octopus Energy and RES announced a hydrogen partnership back in 2021 with plans to invest GBP 3 billion in UK green hydrogen plants by 2030.
The joint venture combines RES’ renewable development experience, the two funds’ investment potential and Octopus Energy Generation’s links with potential industrial offtakers and its ability to supply green electricity.
ORIT said that HYRO’s first three projects totalling around 30 MW have been shortlisted for the first allocations of ongoing revenue support under the UK government’s Hydrogen Production Business Model. Awards to successful projects are expected to be made in the fourth quarter of 2023. The shortlist was published last week as the government announced its Powering Up Britain: Energy Security Plan.