Continued Focus on Green Hydrogen
Green hydrogen continues to be the buzz word in the energy sector, attracting much attention to its potential of delivering a truly clean, and sustainable, energy solution to an ever increasingly energy intensive world. Hydrogen, however, suffers from existing market limitations, both at the retail and industrial end( some of which are technology driven).
The green hydrogen market remains a key area of investment in the energy transition space. Green hydrogen is seen as a critical component in decarbonising“ hard to abate” industries and this is reflected in the many policy support and incentive packages on offer from various governments around the world. Given the capital intensive nature of these projects, project finance is a natural solution but the absence of long term bankable offtake agreements remains an issue for the market.
Regions such as the Middle East and North Africa are actively positioning themselves as green hydrogen export hubs, which will( and already has) lead to large-scale export orientated project financings.
Bracewell has been advising a consortium comprising Marubeni Corporation, OQ Alternative Energy LLC, Samsung C & T Corporation and Dutco Overseas Limited with respect to their development of a green hydrogen facility in Oman under concession from Hydrogen Oman SPC. Bracewell’ s work over the past year has focused on advising the consortium with respect to its corporate structuring, navigating complex inter-shareholder issues and decisions regarding the ideal corporate development structure.
Bracewell continues to work with clients in developing solutions to hydrogen’ s structural problems, including by advising on inter-governmental arrangements and potential sovereign support to fast track this innovative sector.
Recent Notable Matters
• Marubeni Corporation, OQ Alternative Energy LLC, Samsung C & T Corporation and Dutco Overseas Limited— advising the consortium members on the development of a green Hydrogen facility in Oman under concession from Hydrogen Oman SPC
• Hydrogen Equity Partners UK Limited— advising Hycap, through its fund HYCAP Fund 1 SCSp, on its equity and debt investment into Dragonfly International BVI, a new developer of modular sustainable aviation fuel( SAF) process plants
• Hydrogen Equity Partners UK Limited— advising on its preferential share investment in ZETI Limited, a Fintech software platform that helps vehicle fleet owners convert to electric vehicles. Entering into shareholders’ agreement with the other shareholders.
• Hydrogen Equity Partners UK Limited— advising on an up to £ 50 million debt and equity investment in ion Ventures, a battery and solar developer
• Emirates Steel Industries PJSC— development of 100 MW green hydrogen production facility in Abu Dhabi
The Year Ahead
We project that green hydrogen will remain a prominent feature on the 2025 development calendar, with countries such as the Sultanate of Oman staking multidecade investments on the prospect of green hydrogen becoming the energy source of the future. bracewell. com