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