Hydrogenone Capital Growth Share Discussion Threads

[zeppo] 29/7/2021 15:23

eaaxs06

Thank you for the info.

pottsypotts

I concur with 16 0f 16.


Sticking with it though whatever the price tomorrow.

Many Hydrogen related stocks are down on their highs eg: JMAT, RCDO, CWR, AFC PHE and ITM.

It may be a good time for the Trust to invest.

Plus they are backing private start-ups and investing in private companies.


To me it is a diversification: spreading the risk.

The market generally is 700 points down since 2018.

When and if there is recovery I believe that this sector is one to include.

Ian Cowie, (already into ITM which he had successfully top sliced), was positive on the IPO.


I am grateful to him for suggesting GSF and EGL

I have successfully diversified into these two dividend payers.

Midas in the Mail on Sunday was also positive on the IPO.

[pottsypotts] 29/7/2021 08:53

Invested for the IPO, bit disappointed with the take up?

[eaaxs06] 28/7/2021 13:02

The offer was undersubscribed, only 107.35m applied for, when they were looking for 250m.

It will be interesting to see how strongly Panmure Gordon support the share price when it opens on Friday.

Good luck everyone, Sid.

[ec2] 27/7/2021 18:32

Offer closed today. I decided to pass on this at this time on the basis that there appears to be no seed portfolio and that a large portion of the subscription proceeds will remain in cash pending investment.

[loganair] 23/7/2021 16:14

Ultra nascent hydrogen:


Though the technologies involved are proven, clean hydrogen is very much a nascent space.

Hulf said globally barely a handful of projects globally are on-stream at the moment, but industry and governments are now rushing to build.

According to a McKinsey report for the Hydrogen Council published earlier this month, 359 large-scale hydrogen projects across industrial, transport, infrastructure and other sectors have now been announced, with 131 coming just since February.

For the portfolio, Hulf said they were in discussions over clusters of electrolyser projects around the ports in Rotterdam and Amsterdam, with end users of the hydrogen including cement and steel, as well as local bus companies.

HGEN will take stakes in these projects at the construction stage, achieving attractive yields to support the trust’s 10-15% annual total return target. Hulf said the technical risks were very low’, while engineering consultants Arup are also on board as a technical adviser.

The gap for the trust comes from being ‘one of the first movers in there from the financial sector’, given the incipient nature of the space and currently small ticket sizes, precluding many larger investors.

‘The biggest risk is not being able to get hold of the land to build the thing on, which is extremely low. And it’s getting the off-take agreement signed for the hydrogen,’ said Hulf.

The manager has some renewable energy experience from his Artemis days, as well as investing in some hydrogen and private companies. He added that Traynor’s background working at Shell (RDSB) and then later on natural gas projects in North Africa at Sound Energy was another help, given the similarity in terms of project financing, structuring and off-take agreements with buyers of the hydrogen.

While this recalls the structure of trusts in the renewable energy infrastructure sector, Hulf emphasised this is not an income fund and they plan to sell the assets once they have a track record of cash flows.

Hulf expects the relationship with Ineos, struck via the managers’ traditional energy network, to help with access. The company controlled by billionaire Jim Ratcliffe has co-investment rights in HGEN projects, while the trust will also gain the option but not right to invest in Ineos ventures.

Overall, Hulf said the response so far had been ‘very encouraging’ and expressed massive excitement for the future of the sector.

‘We’re starting from a very low starting point in terms of investment. So even if it does end up as being only 10% of the primary energy mix by 2050, there’s an awful long way to go to even get halfway there,’ he said.

‘And so that’s what this fund is trying to capture.’

The share issue, which closes on 27 July, is available on most UK investment platforms via an intermediaries offer. A prospectus is available on the company’s website. Panmure Gordon is acting as the sponsor, and the broker and Kepler Cheuvreux are acting as joint bookrunners for the IPO.

On private assets, the annual management fee will be 1.5% – falling to 0.5% where projects are waiting for investment – while a 15% performance fee (a fifth paid in shares in the trust) will be levied on realised annualised returns above 8%. The separate fee structure on public holdings will be 1% up to £100m of assets and 0.8% thereafter.

[zeppo] 23/7/2021 14:17

Ineos backs UK's first ‘clean hydrogen’ trust in £250m launch
By Jeremy Gordon 05 Jul, 2021
12Comments
HydrogenOne Capital Growth (HGEN) has already secured a cornerstone investment of at least £25m from Ineos, the world’s third-largest chemicals company, controlled by billionaire Jim Ratcliffe.
The ‘first of a kind’ investment company, which is seeking to take advantage of burgeoning activity in the space during the energy transition, will be managed by sector specialist HydrogenOne Capital.
In a document revealing its intention to float, HGEN said it would aim for a total return of 10-15% annually by investing in a mix of public companies and private businesses not quoted on any stock exchange.
The lead managers of the portfolio will be John Joseph Traynor, who has held several senior banking and energy sector roles including executive vice-president at Shell (RDSB); and Richard Hulf, a fund manager with 30 years’ experience in the utilities and energy sectors.
Targeting hydrogen and complementary hydrogen-focused assets, the managers said the fund would have an investible universe of around $90bn. They have identified 36 prospective investments, including a number where they have conducted detailed due diligence and made indicative non-binding offers.
The managers said they saw the potential for ‘green’ and ‘blue’ hydrogen projects, or both those where hydrogen is generated by renewable energy sources, as well as ‘blue’ hydrogen produced using natural gas where the emissions are captured and stored.
‘Clean hydrogen is a fast-moving and complex sector, that commands a specialist approach with access to private equity, to unlock value for shareholders. We have established HydrogenOne to fill that gap,’ said Hulf.
Ineos Energy will make a strategic investment of at least £25m in the initial public offering (IPO) and has been granted the right to co-invest in any additional capacity in private projects identified by HGEN, as well as the right to appoint a non-executive director to its board.
Brian Gilvary, Ineos Energy’s executive chairman, said the investment would ‘help to accelerate and diversify Ineos’ existing clean hydrogen strategy’.
‘It marks the beginning of another substantial and long-term partnership, opening new windows into the clean hydrogen world for Ineos,’ he said.
According to HydrogenOne, there has been a sharp acceleration in clean hydrogen projects, with a 60% increase in announced production capacity in the period to 2030 over last 12 months.
The HGEN launch follows the Liontrust’s decision to pull its plans for an investment trust focused on environmental, social and governance principles last week, after failing to hit the £100m minimum target.
Closed-ended funds focused on alternatives and private assets have been much more successful in raising new cash, however. In the first half of 2021, trusts in the Renewable Energy Infrastructure sector – where HGEN may not sit, but has some natural affinity – raised

[tenapen] 23/7/2021 12:11

Double post :-/

[tenapen] 23/7/2021 12:10

I won't invest directly but it will be interesting to follow HGEN and it's holdings going forward.

Good luck.

[pob69] 23/7/2021 11:29

Further reading

[pob69] 22/7/2021 22:12

Ian Cowie: new trust offers chance to buy hot sector without overpaying

[pob69] 22/7/2021 22:07

Worth noting HL has a deal where you will gain an additional 0.5% of shares as a bonus for your initial investment! (ii and AJ Bell are not offering such a bonus.)

[zeppo] 21/7/2021 21:10

HydrogenOne's launch webinar last week showed that they are considering many private companies as well as public ones.

Companies like JCB or Riversimple (below) could be included.

It is difficult for private investors to get into this area unless through a fund like HydrogenOne which invests in private companies including start-ups and PLCs:

They mentioned ITM and listed AFC on their PLC indications.


'Hydrogen-powered cars to be built in Wales with Siemens support
Alan Tovey 10/02/2021

A British start-up building hydrogen-powered cars has won backing from Siemens, which will help mass-produce the vehicles.

a car parked on the side of a lush green field: The Riversimple Rasa has a top speed of 60mph and a range of 300 miles © Provided by The Telegraph The Riversimple Rasa has a top speed of 60mph and a range of 300 miles
Riversimple, based in Wales, has joined forces with the German industrial giant to collaborate on product design, supply chain management and industrialisation as well as helping secure financial backing for the “Rasa” cars.

Powered by a hydrogen fuel cell, the Rasa – “clean slate” in Latin – is pollution-free.

The two-seat cars, which have a top speed of 60mph and a 300mph range, will be leased rather than sold to drivers.

Riversimple estimates the total cost of ownership – including fuel, insurance and tax – will be about £500 a month to drive about 10,000 miles a year. That is about the same total cost of running a VW Golf, according to founder Hugo Spowers.

a person wearing a helmet and holding a piece of luggage: Hugo Spowers, founder of Riversimple cars© Provided by The Telegraph Hugo Spowers, founder of Riversimple cars
Rasas are expected to have a 20-year life and then be recycled, with many of the components going into new models, promoting environmental sustainability.

Mr Spowers said Siemens' backing was a very significant seal of approval.

“The are looking at future technologies and models in ways that existing cars companies can’t because of their legacy with the internal combustion engine," he said.

“Siemens is engaged in understanding business models of the future, and their support brings options for accessing financing that does not fit into the models of existing car makers.”

Brian Holliday of Siemens said the company was delighted to work with Riversimple and support firms producing "boundary-breaking products”.

Although they have a range comparable to conventional cars, the Rasa is intended for “local use”, hence their low top speed.

It also eliminates concerns about the lack of hydrogen fuel stations, as customers are likely to be those who live near one.

As hydrogen becomes more popular as a fuel source, Mr Spowers said industry – rather than government – would build more hydrogen fuel stations to meet demand.'

Two and a half days to throw your hat into the ring if the offer stays open until nest Monday afternoon.

[zeppo] 20/7/2021 16:47

'Make your mind up time'.

hxxps://hydrogenonecapital.com/


Applications by afternoon of Monday 26th July 2021.


If oversubscribed it offer may close early.

[zeppo] 20/7/2021 14:17

Roller coaster market may affect this IPO but Jim Ratcliffe/INEOS is putting in a minimum of £25 million.

If oversubscribed it offer may close early..

After finding the pre-launch webinar impressive I regard it as an interesting 'hedge' and diversification from my direct Hydrogen/Fuel Cell investments which could do extremely well.

[zeppo] 18/7/2021 18:55

Punted by Joanne Hart, Mail on Sunday 18th July 2021: 'Midas verdict: Clean hydrogen is one of the fastest-growing sectors within the green energy market and is expected to be worth at least £600billion by 2040. Traynor and Hulf are starting small but they hope to scale up rapidly, providing much needed capital to small and mid-sized businesses and delivering returns for investors too. The pair know what they are doing, they are well connected and each investing £100,000 of their own money in the flotation. An attractive long-term buy.

To be traded on: Main market Contact: hydrogenonecapitalgrowthplc.com or 020 4513 9260 Ticker: HGEN '

'High ambition: HydrogenOne Capital will invest in hydrogen to provide clean fuel for planes, ships and trains'

I watched the recent HGEN webinar and will make applications for my family ISAs.

HGEN invest in private companies as well as PLCs. They are already in AFC Energy and stated that they understand it can take time to conclude deals and that they understand that. (that was not particularly in relation to AFC. ITM was mentioned.

[zeppo] 18/7/2021 18:47

!FOLLOWFEED😊


hxxps://hydrogenonecapital.com