Good afternoon, and welcome to the Hydrogen One Capital Growth plc Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated in the right-hand corner of your screen. Just simply type in your questions and press Send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd like to hand you to Dr. JJ Traynor. Good afternoon to you, sir.
Good afternoon. Thanks, everybody, for joining this first half twenty twenty-four interim results presentation. I'm JJ Traynor, one of the managing partners here at Hydrogen One.
I'm Richard Hulf, other co-founder. Nice to meet you guys.
So the disclaimer statement, agenda for the call, I'll take you through the results. No change to the numbers, so I think that, that'll be quite a quick part of the presentation. Then Richard will come in with a portfolio update, then back to me on the hydrogen market. We thought we'd take the opportunity to talk to you about what's happening in the hydrogen industry, and then we'll bring it all back together for a Q&A, and lots of time for Q&A, so please do ask your questions. First of all, the results and highlights. This is the aggregate of the Q1 and Q2 numbers, and those numbers haven't changed.
So as we said, back in July with Q2, NAV, is up, NAV per share is up by 0.6% across the year, underpinned by financial growth in the portfolio companies. Good to see that, that's still coming through. Avoided greenhouse gas emissions, just, around 160,000 tons since the IPO. So this is an energy transition, proposition, so again, nice to see those numbers rising, and portfolio companies continue to attract a lot of interest from industrial strategic investors and from institutions. There's been around EUR 670 million invested in our portfolio companies, so far this year.
The main activity for us, as custodians of shareholder funds, has been to put in follow-on investments in some of the portfolio companies, alongside those strategics and other institutions, and of course, working on exits and secondaries, in multiple portfolio positions, to generate cash. The numbers, in a bit more detail, I'll do this very quickly. No change, really here from our Q2 presentation. NAV growth for half was driven by improving valuations in multiple private positions, and we think we're seeing the benefit here of our diversified portfolio approach. In a bit more detail, the waterfall chart on the left-hand side of this slide shows the moving parts of the NAV increase across the first half of the year.
A rise in valuations in several private positions, with a smaller offset from listed names, so totaling around three pence per share in total of growth, then with some offsets from fund expenses and exchange rate movements. On the right-hand side, on a longer term basis, since the IPO, the NAV per share has been rising steadily since the mid-2021 IPO. We would characterize that as organic growth across the portfolio. This chart breaks down the NAV growth in more detail across the half, so this is on a company-by-company basis, and this is the entire Hydrogen One private portfolio. We try to give maximum transparency to our investors here.
We've seen increased valuations in multiple portfolio companies, and the NAV at the end of the period now sits at GBP 133 million compared to a market capitalization of just over GBP 50 million. Some comments on valuation and the valuation methodology. The valuation of the entire private portfolio is reviewed and approved by the board and the AIFM on a quarterly basis, and it's reviewed by the company's auditors, KPMG, annually. The private portfolio is valued either using discounted cash flows, so discounted expression of future cash flows, or a combination of DCF and the price of recent investment, sometimes called PORI. The portfolio average discount rate for June 2024 was 13.3%, which is relatively high in the energy sector.
And DCF valuations are also benchmarked against listed peer group valuations as part of our reporting process. So multiple inputs, we think a very rigorous way of doing these valuations. By way of a sense check, four portfolio companies saw external investments, so new investors coming in so far this year. So that accounts for around 77.0% of the NAV. And the valuations that you see here are calibrated using those entry prices, so there's that very real external benchmark on the portfolio values.
So overall, we think this is a very detailed, robust, and I think we're going to have to say, quite a challenging process, which we think should give our investors confidence in the numbers that we're disclosing. In terms of the share price development, we're quite often asked about the disconnect, therefore, between our NAV and the share price development. The chart on the right-hand side so is the development of NAV in the fund on a sub-sector by sub-sector basis. So generally rising with some volatility. The dashed line on the right-hand chart, or on the right-hand side of this chart, is the listed hydrogen sector. So we've got the listed hydrogen sector, which has been falling steadily since our IPO.
On the left-hand side of the chart, you can see our share price, the share price of the listed hydrogen market, which are broadly tracking each other, and our NAV in the orange line, rising gently across the period. Listed hydrogen companies, and I have to say, other renewables companies and funds, listed funds, have all been under pressure since 2021, as the market's been blown around by a risk-off attitude to the future energy industry. Higher interest rates, energy geopolitics, and all of those things together have led to this de-rating of listed share prices.
Our share price, of course, is very much caught up in all that, leaving us at quite a large discount to our fundamental value. We are working hard to close that gap by demonstrating value for our investors, with our, well, obviously through our quarterly reporting, and maintaining the company in good order, pending improved market conditions. With that, Richard, over to you on the portfolio.
Thanks, JJ. What I want to do is just to take you back through the first half, just a summary of the fund and some examples of some of the investments that we've made. Just a summary of the funds here quickly. Private assets dominate 98% of the fund invested into private companies, mostly supply chain companies, manufacturers of components like electrolyzers and fuel cells. Mostly European, Germany and the UK in particular. A couple of project developers in there, in Sweden, sorry, in Norway, and in Germany. We'll take you through some examples of those in a moment. So overall, diversity between companies, services, and geographies with an OECD focus, and a lot of investment coming into the sector from our other investors in the portfolio.
Just a quick summary of the news flow in the first half. Our companies continued to attract third-party capital. That's EUR 670 million invested by third parties in the first half of the year, underpinning broad support for the hydrogen sector. That went predominantly into Sunfire, EUR 500 million for the news flow there, Elcogen, EUR 140 million, and Strohm, another EUR 30 million being invested there. In terms of the portfolio-generating revenues, as JJ said, we want to emphasize this is not an R&D portfolio. These are real companies, mature companies generating revenues, and in the first half, on a 100% basis, the portfolio generated 66 million in revenues over the last 12 months to Q2 2024.
That was up 20, sorry, 44% from the equivalent period in Q2 2023 on a pro forma basis. So it just shows that the growth is real, and it's accelerating. Our companies continue to attract the third-party capital, as we mentioned. I'd like to take you through a few examples over the next few slides, starting with Sunfire. So Sunfire is one of the largest holdings in the fund, and this is a leading alkaline and solid oxide electrolyzer business with its HQ in Dresden. Photographed on the left-hand side there. Sunfire recently announced the closure of a EUR 500 million funding round, including EUR 250 million of equity and capital from Hydrogen One in terms of convertibles into that funding round.
This leaves Sunfire as one of the best-capitalized electrolyzer names out there, and it's well positioned to grow its capacity to gigawatt scale from that factory in the coming months and years. Then we have Elcogen. EUR 140 million of investment into Elcogen, primarily from Hyundai and Baker Hughes and others, investing into the latest funding round. The investment by Hyundai comes with a strategic intent to set a manufacturing joint venture up in South Korea. This is the shipping part of Hyundai, so we should see some interesting developments in the maritime application of hydrogen. This will be used to...
the current funding round to build manufacturing capacity to 100 megawatts in the factory that you can see going up there on the left-hand side, and this construction has already commenced in Tallinn, and for first production from that factory, early next year. Then we've got HiiROC. HiiROC is now moving to scale up of the manufacture of the HiiROC units. The Gen 5 units are now installed with Centrica and CEMEX at TRL levels of seven to eight. That's technology readiness levels. JJ will take you through some examples of the other TRL levels of the rest of the fund, just showing you the maturity of the technology in these businesses. HiiROC, don't forget, makes the HiiROC unit that splits methane into carbon and hydrogen.
This is a real focus in cement, steel, energy storage and management, particularly areas where companies are looking to do something with waste methane or methane gas. And probably a lot of the hydrogen that we'll get produced in the U.K. for conversion into our current gas-fired power stations, may be using the HiiROC, the HiiROC system. A recent investment from the U.S. will see HiiROC access the U.S. gas supply chain as well. A great and interesting application in terms of flare gas mitigation. The runtime of these units is now only restricted by the carbon handling, as torch performance is excellent.
You're taking methane, and you're producing five times the amount of carbon to hydrogen, but you can see the test unit operating well there in the Brigg test site on the right-hand side there, with Centrica. The last company, but one, is HH2E. HH2E own the investment rights into a portfolio of green hydrogen projects in West Germany, including Lubmin and others. Lubmin was a nice catch for us in terms of the restructuring of HH2E in the first half, where we had the special purpose vehicles being absorbed up into Topco. But the portfolio of HH2E is huge. HH2E aims to establish four gigawatts worth of green hydrogen production across various locations in Germany, seen on the map on the right-hand side there.
We've also had the announcement of the partnership with Borsig ZM in helping the production of green hydrogen in Germany through advanced compressor technology, specifically for a 200-megawatt electrolysis plant. You can see some of the units on the left-hand side there. This is vital technology. It's very important for the storage and transportation of green hydrogen in Germany, as the real network and infrastructure of Germany starts to advance. And then on to the last company we want to just focus on for now. Not so much to do with the funding of Bramble, but what Bramble do in the portfolio is they make a fuel cell. You can see a picture of one on the left-hand side there, made of printed circuit board material, so it's replacement of metal.
And in percentage terms, fuel cells made from printed circuit boards are up to 80% cheaper compared to metal-based fuel cells, and this has great application in the mobility sector. In the first half of 2024, Bramble deployed this lightweight technology in some key mobility applications in transport and marine, as you can see from the pictures on the right-hand side there. Because of the secrecy, we can't talk about in detail the application into the tier one auto sector, but as you can imagine, getting fuel cells to be cheaper and lighter is key for tier one auto manufacturers. And investors will have noticed the recent collaboration announced between Toyota and BMW in scaling up full-scale manufacture of the BMW iX5.
And this is very relevant to what we're doing with Bramble. So if I can pass you back to JJ, we can talk a little bit about some of the macro issues around hydrogen.
Thanks, Richard. Let me take a few slides to update you on how we see the development of the hydrogen macro. And I think people on the call may be familiar with quite a common theme in technology sectors. That at the early stages of a new technology sector, there's overoptimism in the market as to the potential of that new technology. And that's very rapidly replaced by overly pessimistic views as to the future of that tech. And then you get overoptimism, you get overpessimism, and then you get sort of pragmatic reality kicking in. And that's sometimes called the Gartner Hype Cycle, so over, under, and then reality.
We think very firmly, actually, that that's what's happening in the hydrogen sector. A lot of hype in twenty twenty, twenty twenty-one. Now, lots of pessimism, but actually, too much pessimism, because what we're seeing is an industry that's moving along quite nicely and actually accelerating in terms of its growth. The chart on the screen sort of summarizes how we see the deployment of clean hydrogen. Hydrogen is sometimes called the Swiss Army knife of decarbonization. So, one gadget, lots of applications. And in many, you know, of the examples on the chart, there's actually no alternative to clean hydrogen if we as a society are gonna get to net zero.
The themes in green on the left-hand side of the chart, those are already commercial. They're already out there making money, and obviously deployed, and the others are at a slightly earlier stage. What we're seeing is a lot of uptake in clean hydrogen in the industrial gas sector, and good momentum in other areas. Keep an eye on transport and synthetic aviation fuel, particularly in the European Union. Our view is that hydrogen is highly investable now. It is a $175 billion a year market. That is the so-called gray hydrogen market. Big industrial gas and a big polluter.
Replacing all of that with clean hydrogen is very much what's driving demand for the products that the companies that Richard's just described. This is not an R&D game. This is a rollout of established technology into quite a large market. Over time, we do expect to see clean hydrogen expanding more broadly in the energy system, and particularly, displacing diesel. There's value for investors in getting involved now in supply chains and key equipment providers. There's also value, we think, in getting in at the start of large-scale hydrogen supply joint ventures. Investable now and growing now.... Now, just to put that in context, around the world, we are tracking 1.2 gigawatts of green hydrogen online today.
That's about 0.2 million tons per annum of green hydrogen. That is 50%, 50% up versus last year. And behind that, that 1.2 gigawatts, there's nearly 40 times as much in development. Money being spent in a material way on electrolyzers, on land, on the compressors, and other off-take equipment. And all of this, you know, in the end, has substantial potential to avoid greenhouse gas emissions. Same sort of thing, but just expressed in terms of money. This is the funds flow into the clean hydrogen sector since we launched in 2020. $50 billion have been invested around the world since 2020. A strong increase this year compared to 2023.
The numbers are up 25% to $20 billion so far this year, so there's some acceleration there of the investment, and just to make it real, here are some examples of hydrogen supply projects that are post-FID, so after the final investment decision, and these are under construction around the world today. Nine gigawatts of projects. When all that's on stream, that's 1.2 million tons per annum of green hydrogen, compares to 0.2 online today. EUR 18 billion is being spent to develop all of this. That's serious money from major backers and banks. These are bankable projects, large scale. It's not hype, it's not innovation R&D. This is real, it's large, and it's happening now.
And if you bring that through, in, into our portfolio companies, and think about the technology readiness levels, the TRLs of these businesses, there are some earlier stage applications here, Bramble, which Richard's mentioned, and Cranfield. These are low valuations with huge upside for our investors as those technologies mature. At the top end of the chart, there large-scale commercial rollouts, high TRL levels. These are some things like Sunfire and Strohm. Double-digit revenues and flight plans for positive EBITDA. So real assets, solid businesses, growing markets, and highly investable now.
Thanks, JJ. Let's just round off there. We continue to invest into some of the best hydrogen companies and projects globally through our own unique network. We've got a rising net asset value that represents the real value, the real calculated value in the portfolio. Material and rising revenues from these businesses that we've invested into, with a real first mover advantage to capture the best sites and the best markets in the hydrogen world. GBP 3 million invested from us in the first half of two thousand and twenty-four, compared to our co-investors of EUR 566 million invested into the same portfolio. That's the EUR 670 million euros that I mentioned earlier.
Specifically, one of the best companies in the portfolio, HH2E in Germany, the consolidation secured a great holding in some of the best green hydrogen projects globally, and we're very proud of that. Cash of £2 million so far to be topped up with portfolio disposals ongoing and on track throughout the remainder of two thousand and twenty-four. As we set out at the beginning of the year, that's all going to plan. And as JJ has just demonstrated, the hydrogen sector is material, it's growing, and the time to invest into this sector is now. Thanks very much for your attention, and we'd like to pass it back to you for a Q&A session.
Thank you very much for the presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab, which is situated on the top right corner of your screen. But just while the company take a few moments to read the questions that have already come in today, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. As you can see, we have received a number of questions throughout today's presentation. If I could just hand back to you to read out those questions and give response to it. It's appropriate to do so. I'll pick up from you both at the end.
Okay, first question, based on the cash at the end of the first half and cost of running the company, when does the cash run out, and are you addressing this issue? Yes, we are addressing this issue, and we've been working on an ongoing number of disposals from the fund that we said we would complete by the end of 2024, and that's all on track. In terms of the £2 million, well, it costs about £3 million a year to run the fund, but with the disposals that we're expecting, we would expect the fund to have funding for at least another year plus. Yeah?
Yeah.
Yeah.
... so pre-submitted question, what's been done to tackle the massive discounts in the hydrogen share price?
So thanks for the question. We did touch on this in the presentation. The value gap we see is at least 50%, so that's comparing the NAV to the share price. I think what we can do as fund managers is a couple of things. We can ensure that the NAVs that are published are correct and do reflect the fundamental valuations, and so that the market should have confidence in those numbers, and we talked about the processes and things that go into that.
We can also show value back to investors by ultimately divesting from positions and showing that value in expressed in terms of cash. And I think I have to say there is a large macro effect in this, which isn't really in our control, which is all around the interest rate cycle and the geopolitics that go with energy. And what we are working on is all of those things, and making sure the company is run properly and maintained properly until such time as that macro position improves.
I mean, it's also worth adding, the last time we updated you was the end of July, in terms of exits from the portfolio. Then we had August. This is a European portfolio, not much happens in Europe, during the summer. So we're now reentering that window. So there's a question here about, exits haven't happened. Well, they didn't happen in August, but we've got now till the end of the year, and everything's on track, as we said, for a continuing disposal process.
Following on from that, there was a pre-submitted question, which mentioned that last year we talked about divestments this year. And are you still on track for all of that? The answer is very firmly, we are on track for divestments in 2024.
The discount rate has come down from 14.2 to 13.3, having a positive impact on the NAV. Can you go into the reasons for this? Yes. The way we calculate our weighted average cost of capital starts with the risk-free rate of return, which has come down across the world, and we have a look, a weighted average discount rate of cost of capital going forward. So that's come down a lot in real terms. We also apply a small company discount. That's also come down, that comes from third-party data. So there has been an incremental move, and that's been calculated. That's not just guesswork.
There's again a pre-submitted question referring to the chart that talks about the Swiss Army knife of decarbonization. Which hydrogen application under development excites you the most, and why? Well, I just mentioned two, and Richard might want to come in too, but the industrial gas sector, so replacing gray with green, that's what we thought would drive the industry when we did the IPO, and that's all coming through, and that frankly is keeping us pretty busy. But at the other end of the spectrum, if you like, at the bottom end of the Swiss Army knife, there's a section there around flight, and this is fundamentally earlier stage, but decarbonization of flight is extremely challenging.
Essentially, what you can do is have fuel cells running on hydrogen in turboprop, or you can find a way to use hydrogen in jet. There are some significant, you know, monies being invested in creation of what are called synthetic aviation fuels, which are basically a like for like aviation fuel, but using sustainable components, CO2 that's captured from the atmosphere, and of course, hydrogen that's manufactured using electrolysis. In the European Union, there are rules coming in that require the use of synthetic aviation fuel, and that, we think, is gonna be a big demand pull for clean hydrogen going forward.
What are the brokers doing to bring the discount in to get you noticed? Do you have any face-to-face meetings or group presentations, please?
Well, if that's coming from someone that hasn't had a meeting, we will come and see you. Do not worry. But yes, Barclays, our broker, and Buchanan, our PR guys, have organized a lot of meetings for us, and we've been meeting institutional investors alike throughout the summer. So yes, we think we've got that covered.
Miguel M, thanks for the question: Why has the last twelve months revenue declined in Q2 twenty twenty-four versus Q1 twenty twenty-four and Q4 twenty twenty-three?
Miguel, thanks for the question. We look at this year over year, so the revenues that we show for the portfolio, it is the last twelve months of revenue expressed at the end of the current quarter. And we think the thing to do is compare Q1 to Q1, Q2 to Q2, Q3 to Q3, et cetera, which takes away the seasonal variations in revenues, and that's frankly a fairly standard way of looking at revenues in the market. So year over year, so Q2 to Q2, the revenues were up 44%, and we think that's a very comfortable position to be in.
We think there's more revenue growth to come.
And view the correlation between your share valuation and the rest of the sector. What makes up the rest of the sector?
Well, it's basically the list of companies like ITM Power in the U.K., Ceres Power in the U.K., Bloom, Ballard, Plug Power, other companies in the U.S., companies, Enapter on the continent. It's a global mix of the main companies. There are very few project developers. They're mostly a supply chain businesses and manufacturers. That's what makes up the mix. Pretty close to what our portfolio looks like, but all listed, obviously.
... There's a question from Andrew M. And a question from Andrew L. So I'll try and 'cause I think you're in the same area, so let me try and combine those. Any disappointments in the portfolio? What hasn't developed as you'd hoped? And then, with the recent election in the UK, are there any upcoming changes in government policy that could, you know, boost the hydrogen sector in the UK? So, I think taking those two together, the thing that has disappointed is the UK, frankly. So we do have some interesting supply chain businesses invested in the UK. So Bramble, which you mentioned, HiiROC would be another example. But the customer basis for those products tend to be overseas.
And the development of the hydrogen industry in the U.K. itself has not been, you know, globally leading. And you know, around the world, California, the European Union, the Far East have just made a lot more progress on that. If there was one thing that the new U.K. government could do, well, two things the new U.K. government could do, first of all, continue with the policies that were set out by the previous government, which is all around a target for 10 gigawatts for 2030, and providing some of the funding to make that happen. But what they could also do is introduce a timetable to remove gray hydrogen from U.K. industry.
That, of course, would do two things. It would take down 5% of U.K. greenhouse gas emissions, because gray hydrogen is a big polluter in this country. And secondly, it would create demand pull for clean hydrogen to replace the gray. And you know what? That is what's going on in the European Union under legislation called RED III. So some form of phase out of gray hydrogen in the U.K. would, we think, be very beneficial for the hydrogen industry in the U.K. I think one more on this topic. This is a global fund, and so if one country moves more quickly than another country, that's just fine.
We allocate the capital where there's the best NAV potential, for our investors, kind of wherever it is in the OECD.
Another good question from Andrew. Light transport not typically being considered a central part of the usage, but I saw an article recently about BMW reconsidering it. Well, you're absolutely right, and I mentioned it earlier. Yes, BMW have announced they're putting the iX5 into production with a fuel cell. It comes on the back of if people consider EV vehicle sales globally, it's stopped going up. And so people are starting to think about on the tier one manufacturing side, where else can we get a product from? And people are turning back to hydrogen. So that is absolutely. You're absolutely right. That one is going ahead.
So there's questions on blue and green hydrogen from Ivan and from Barry. Let me try and combine those questions. So what's the scale of green versus blue worldwide and going forward? And, you know, Barry, does blue hydrogen have more of a chance of making money? Why isn't Hydrogen One investing in blue? So just to calibrate everybody, green hydrogen is made using renewable electricity and electrolysis, splitting water, so it's zero emission hydrogen. Blue hydrogen uses natural gas, sometimes coal, but more often natural gas as the feedstock. And of course, that creates greenhouse gas emissions. Those are captured and stored geologically using carbon capture and storage. So two fundamentally different ways of making hydrogen.
One of the major differences is the capital cost, and I think this does come to some of the answers to those questions. If you want to build a green hydrogen facility, it costs you about 250 million EUR. If you want to build a blue hydrogen facility, you're in the billions because you need the CCS site, the drilling, the big petrochemicals plant that goes with it. So that capital intensity, we think, in the end, is going to mean that green hydrogen has the advantage. Now, around the world, there are blue hydrogen projects on the table and online in North America. Exxon has a proposal in Baytown. For example, Shell have a project online in Canada.
Here in the UK, again, Equinor and BP have blue hydrogen projects, and ENI have blue hydrogen projects on the drawing board. These are in the billions. In the end, we are interested to grow NAV for our investors and take down greenhouse gas emissions, and we think we're best served doing that, investing in green. Lower capital intensity, lower emissions, and frankly, more affordable for a fund of our size, so that's how we see it. In the end, we think green. We think blue won't be the winner, it'll be green or other forms of clean hydrogen.
David asks, "Can we give an explanation about the falls in value of Strohm and Gen2 Energy?" This is mainly to do with the timing of cash flows. It's not about things going away, it's just things going away slightly into the future. And that has quite a difference when you're doing discounted cash flows, when you start to move a large increase in cash flows out by a year or even six months. So there have been some moderate movement in timing, and that's had a moderate effect on valuation.
Brian P has asked: Hydrogen pricing is not competitive. What are you doing to put pressure on governments to stop interfering in the price manipulation, to make the hydrogen price more competitive? Brian, thanks for the question. I don't think we've got a lot of calling cards on governments around the world. Let me give you a couple of numbers. If you go down to the Land Rover dealer and you buy a Discovery S, a fossil fuel-powered Discovery S, it'll cost you about GBP 63,000. If you call Toyota and buy a hydrogen-powered Mirai, guess what? It costs you about GBP 63,000, and the Hyundai Nexo , some similar sort of price. If you want to fill up the tank with either diesel or hydrogen in those vehicles, guess what?
But in both applications, it costs about GBP 80. And the range of a Toyota Mirai, guess what? It's about 400 miles, which is the same as a Land Rover Discovery. So I'm not sure I fully agree with you on your pricing point. From where we sit, there's pricing parity between hydrogen transport vehicles and luxury SUV. And SUV market is basically what hydrogen transport is all about. The big gap, actually, and the questions back to the governments are where are the hydrogen filling stations? And then here in the U.K., that's basically a big zero. In Germany, the Netherlands, it's a completely different picture.
There are hundreds of hydrogen refueling stations, and frankly, those regions are just much more advanced on this stuff than we are here in the U.K.
Slightly plays into John's question, why is Germany so far ahead of us, seemingly, in hydrogen use? I'm going to give a personal answer to this. I think Germany is a lot more pragmatic. It's run by engineers, and hydrogen is a great engineering solution. Whereas in the UK, maybe we're not so much run by engineers. We do things for different reasons, and we'll get there in the end. But as JJ said, it's law in Germany. You have to build these refueling stations. That means that people like Daimler and Shell and others can start thinking about putting in infrastructure to run HGV trucks. We'll get there in the end in the UK, and hopefully the labor government will take us even further forward.
Do you want to take the Norway question?
Yeah. How is the Norwegian hydrogen development coming on? It's coming on very well. What we've got in Norway, remember, is a very, very cheap source of constant hydroelectricity. So we've got 100% load factors, whereas when you're getting green electricity in the rest of the world, it's normally about, you know, a third to half of the day from, you know, sunshine and wind. So we've got high load factors, great forward thinking from the Norwegian government, and therefore, very, very cheap green hydrogen being produced.
We're currently working with the logistics of getting the hydrogen produced in Norway and being sold down in Germany, in Hamburg, in fact, the same place as HH2E is selling its hydrogen, and working with real engineering businesses to ship and move it by train, and so that's all going very well, and we should be announcing more about that throughout the rest of this year.
And Paul, Paul T, thanks for the question asking about the EUR 670 million and the, I think trying to get the Da Vinci Code of which investment adds to what to get to that 670 billion euros. So I salute the question, Paul, but there is some confidentiality around this, and so, four investments, four companies for external investment in the first half of the year, and those numbers are being used in valuations of the portfolio that we've shown you today.
Perfect. JJ, Richard, thank you very much for taking those questions we have from investors. Of course, the company can review all the questions for today, and we will publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you their feedback, which I know is particularly important to you both, Richard, could I just ask you for a few closing comments?
Yes. Thanks, everybody, for coming along to listen to us this afternoon. Listen, the fund is on track. The growth is real, it's material. Revenue growth from these businesses is very encouraging. There's a very excellent market for acquisitions and disposals that we're playing into, and we'll be updating you through the rest of this year on our progress in that area. So watch this space. We really have first mover advantage here with the Hydrogen One Capital currently not reflected in the share price, but things can change very quickly. So, well, stay with us, and thanks very much for your support.
Thank you once again for updating investors today. Could I please ask investors not to close the session, as you'll now be automatically redirected to provide your feedback and all the management team can better understand your views and expectations. It should take a few moments to complete. It should be greatly valued by the company. On behalf of the management team of Hydrogen One Capital Growth PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.