Good morning and welcome to the HydrogenO ne Capital Growth PLC Capital Markets Day. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time by te 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 pos ition to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. The meeting will commence shortly, and a copy of today's slides are in the handout section on the right hand side of the screen and will also be available on the Investor Meet Company platform post today's meeting.
How are you feeling? Well, good morning, everybody. I felt like I should be doing that at that point and indicating which way you should go. Good morning. Thank you for coming to our first Capital Markets Day. My name is Simon Hogan. I'm the Chairman of HydrogenOne Capital Growth PLC, so we just call it HydrogenOne. It's a bit of a mouthful. I am actually quite pleased to see so many people that I do recognize and would like to give special thanks to those who have traveled from across the U.K. and braved the U.K.'s somewhat mercurial transport system. If anybody got tuck at London Bridge trying to get through to Cannon Street this morning, I feel your pain 'cause I was there.
Actually, it's a really exciting time for the hydrogen industry and the so-called green arms race, which we talk about all the time. It's very much underway with the U.S. and Europe, with the U.K. playing its part. All are trying to make themselves more attractive to the investment community, we believe fundamentally that a significant amount, it says in my notes, billions, but I'll just say a significant amount of capital will be being funneled into the global hydrogen eco-economy. You probably already know, you know, over 30 countries have hydrogen strategies, including the U.K., which is remarkable compared to only a few years ago. It's a very fast-moving sector.
We are today gonna hear from a range of experts in the hydrogen industry, each sharing hopefully a different perspective on what they do and how fast things are actually moving. Since we listed in 2021, the whole team, and that sounds rather large, but all five of them, haven't really had a day off. We've deployed over GBP 100 million into 10 strategic investments, and that is a considerable achievement in such a short amount of time. It's actually very encouraging to see the leaders from those companies here today. I think that's enough from me.
I'll hand over to Richard Hulf, who is the Co-Manager and one of the founders of the investment advisor, to provide details on the fund and to highlight what we believe are the drivers for long-term growth in this sector and t he high-level thinking that's taking place in the fund at the moment. Thank you very much.
Thank you, Simon. I think the whole point of today is for us just to get the ball rolling for the companies we've invested into to talk to you about what they're doing. Today we're gonna showcase some of the best hydrogen companies in the world. First, the way to access these companies is by investing into Hydrogen One Capital, the fund. We founded this fund nearly years ago, listing on the London Stock Exchange mid-2021. It's about capturing growth in the hydrogen sector. We're targeting a 10-15% growth target over time. We've invested into each of the companies that you'll hear from today.
The growth comes from the incremental value in what the companies do, the step changes, the advances in those businesses, and then in the exit from those businesses when we reinvest that capital. This is being achieved by investing in low carbon technologies, making us a climate positive impact fund. SFDR Article 9, the highest accreditation for an ESG fund. Against the backdrop of a strong macro tailwind supporting a large pipeline of deals and opportunities, there's plenty more for us to go forward and to be investing into. What's our strategy? It's about really tackling the industrial space of hydrogen, changing the gray hydrogen to green, and cleaning up the heavy end of transport and power.
We've been at this for some time, we know what's going on in the hydrogen sector. We're now a GBP 130 million fund. We're a team of 10, including the board, that Simon leads. To find the best investments in the hydrogen sector, you have to understand the market and know what's going on and know the players. One of the biggest players, of course, in the hydrogen sector is INEOS, we're grateful to have them as our cornerstone investor joining us at the IPO in 2021. You're gonna hear this morning directly from the CEOs and the senior management of the companies that we've invested into. Let's just run through quickly what you're going to hear.
Initially, the first session will cover hydrogen production, storage, and distribution. The first two companies you'll hear from are HH2E, making green hydrogen in Germany, and Gen2 Energy, making green hydrogen in Norway using hydroelectric power. You've got to move this hydrogen, though, so we've invested into the development of the offshore hydrogen industry, where hydrogen is made at source, on the wind platforms, and then piped to shore. That's what Strohm do, and you'll be hearing more from Strohm. Onshore hydrogen can also run along pipes, but the pipes can't go everywhere, so we need to compress that hydrogen and move it in cylinders, and that's what NanoSUN do, and you'll be hearing from NanoSUN as well.
Our next session will be the session focusing on the critical supply chain, engineering businesses, industrial players that make and manufacture. Electrolysis, making hydrogen from water. We've invested into Sunfire, making grid-scale electrolyzers, we'll hear from them. Fuel cells, turning the hydrogen back into electricity. Elcogen will take you through that. We have to start cleaning up those fuels, HiiROC are doing just that, splitting methane into carbon and hydrogen, and we'll hear from them on how that's done later on. Caroline Cook from Baillie Gifford will host a Q&A session on that. We've saved the best to last, hydrogen applications, and the fascinating business of hydrogen in aviation with Cranfield Aerospace, flying with hydrogen. We'll hear about that.
Finally, Bramble Energy. We've got to get the cost down in this sector. We've got to make fuel cells and electrolyzers cheaper. These guys are doing it by using printed circuit board material, PCBs, an ingenious technique, and you'll see they'll talk to us about how they're doing that. Then we'll then I'll chair a Q&A session before JJ closes us out for lunch. Let me just close now, for now by saying that this silent hydrogen revolution is underway now. What today is about is companies demonstrating what they are doing now, selling and making and producing equipment into the hydrogen sector.
Before we know it, our energy infrastructure will contain quiet banks of multi-megawatt electrolyzers silently producing green hydrogen, going into fuel cells for backup power systems, for example, in data centers, quietly blending into the gas grid, having completely replaced gray hydrogen. And that's what we're focusing on right now. All that access to all those companies and businesses and projects will come through HydrogenOne Capital. I'd just like to say a huge thank you to the whole HydrogenOne team for organizing today, but particularly to Eva Bezruczko, who's masterminded the whole thing. I'd just like to give a little round of applause to Eva. Thank you. Now, ladies and gentlemen, I'm very pleased to introduce our keynote speaker, Mr.
Daniel Hanna, Global Head of Sustainable Finance, from Barclays Bank, our new broker. Daniel was previously, was the founder of Global Head of Sustainable Finance at Standard Chartered. He's also a board member of the African Export-Import Bank and part of the steering group of the UN Development Programme. Please give a hand to Dan. Thank you.
Thank you, Richard and Simon. Good morning. I actually want to start with a thank you as well just to the HydrogenOne Capital team for inviting me to give the keynote address and for appointing Barclays as their sole new corporate broker. Thank you. I have to admit a certain nervousness in speaking about hydrogen in front of such an expert group of investors and practitioners, and for a fund whose sole investment purpose is, well, hydrogen. Please be gentle. Like HydrogenOne, Barclays believes in the importance, risks, and opportunities presented by the transition to a low-carbon economy. We were one of the first banks to commit to aligning our financing to net zero, and we've committed to mobilize $1 trillion into green and transition finance, as well as investing GBP 500 million of our own balance sheet into early-stage climate technology.
That said, we recognize that we need to do more to drive the transition. 2022 was a record year for greenhouse gases, 2023 is very likely to be another one. This amount of emissions, as we all know, has profound implications for climate and society. Some analysts now believe that the probability of global warming exceeding 1.5 degrees by 2026 could have reached as much as 50%. However, record emissions are also hiding significant structural change. 2022 also saw an all-time high in new utility-scale solar and wind capacity, about 300 GW globally, a trend that is likely to be repeated this year. Electrical vehicle sales grew by 36% globally, with some estimates suggesting that China, the world's largest car market, is now selling 1 in every 3 car as an EV.
In Europe, it took till 2019 for renewable power to exceed coal as a source of energy. By 2022, it had exceeded gas. Trends like these are really encouraging. To limit global warming, simply put, we need to electrify what we can and power that through renewables. Any hope of achieving net zero also rests on decarbonizing hard-to-abate sectors where electrification is difficult and areas where grid capacity is a constraint. Enter hydrogen. When used in a fuel cell, hydrogen emits only water vapor. When co-located with renewables, hydrogen can reduce the burden on the grid. These characteristics mean that it can play a pivotal role in tackling the hard-to-abate sectors.
Barclays has built a focus around hydrogen with dedicated investment bankers like Otto, who's here today with us, closed transactions such as the Haffner Energy IPO. As of today, we have nine hydrogen mandates across the U.S., U.K., and Europe. We have also invested directly equity from our own balance sheet through our Sustainable Impact Capital program into emerging growth hydrogen companies across aviation, power, and solutions. Richard and Simon just talked about. As we know, this is not really a new molecule or market. Globally, 90 million tons of fossil fuel hydrogen is used annually. Substituting gray hydrogen for low-carbon hydrogen is an immediate opportunity. Looking ahead, to achieve net zero, the IEA estimates that we need to produce 520 million tons of low-carbon hydrogen.
Simon and Richard just talked about 2022 as a bit of a tipping point when it comes to hydrogen and the move from talk to practical action, and that's potentially changed its economics. 17 countries released new hydrogen strategies, taking the total number to 36. The U.S. went from no national plan to possibly the world's most generous, sorry, regime for green hydrogen through the Inflation Reduction Act. Hydrogen is a central part of the E.U.'s REPowerEU plan, reinforced in February with the Green Deal Industrial Plan, and the U.K. is developing the low-carbon hydrogen business model. We've seen progress in Asia too. South Korea, for example, has now set a clean hydrogen target of 7% of its energy mix by 2036 and promised 6 hydrogen cities.
242 hydrogen projects were announced in 2022, adding 22.5 million metric tons to the global project pipeline. Yet there is still a lot to do before we turn hydrogen hope into reality. While the number of announced large-scale hydrogen projects grows, only about 10% have actually reached final investment decision. The IEA's net zero assumptions don't talk about billions, they actually talk about trillions, a cumulative investment of $10 trillion required by 2050. This is gonna require plenty of debt as well as equity. Last year, we saw the first major clean hydrogen debt financing deals from development finance institutions, with EIB committing $750 million to H2 Green Steel and the EBRD loaning $80 million to an Egypt green project.
Actually, a BCG survey released just this week shows that most banks are not willing to provide financing due to concerns around offtake, 26%, capability gaps, 19%, policy changes, 18%, and technology risks. Developing long-term offtake contracts with reputable counterparties will be key and require large investments from both producers and consumers, with each depending on the success of the other. The Neom Green Hydrogen project, which I looked at from a financing perspective and is building the world's largest green hydrogen-based ammonia facility in Saudi Arabia, benefits from such an offtake agreement with their products. As Simon just talked about, driving down the cost of hydrogen is also critical. Barclays research suggests that the cheapest place to make renewable hydrogen is Brazil, and the most expensive Japan and South Korea, with a difference of more than $5 per kilogram.
By 2030, Bloomberg estimates that cost differential will have dropped to less than $2, sorry. Investors are also keen to understand which business model will prevail. Is hydrogen going to be local or global? Will low-carbon hydrogen resemble the locally driven market for industrial gases or develop into a globally traded market like LNG? We're already seeing different approaches emerge. A domestic model in Europe, an import-led model from low-cost centers in Japan and South Korea, and Australia and Chile pursuing exports given their limited domestic demand and abundant renewables. Which approach is ultimately the most successful will drive, and in part be driven by, similar questions on how best to store hydrogen, gas, liquid ammonia, which transport mode, trucks, ships or pipes, and which size of project, small co-located projects or massive giga-projects, will become dominant.
I've no doubt, given the quality of the agenda that we see today, all of that is gonna get discussed and resolved in the course of the next few hours. Of course, this is all underpinned by public policy. The absence of international agreements on what constitutes green hydrogen is a brake on rapid growth. Equally, clarity on standards will act as an accelerant. As we know, last week, the EU published its rules on what hydrogen can qualify as renewable. It's important that we're having this debate now in order to give developers, consumers, and investors confidence to plan for the future. Momentum is absolutely building. As public policy frameworks and incentive regimes are finalized, more hydrogen projects will reach FID, more industrial clusters will emerge, and a hydrogen ecosystem of infrastructure and supply chains will deepen.
This will require new skills, create new jobs, and underpin a significant structural step on our transition path to a more sustainable economy. The work that HydrogenOne is doing is exactly the kind that is needed in order to make this a reality, providing growth capital to hydrogen production projects and invested in related infrastructure and supply chains. Barclays looks forward to supporting HydrogenOne Capital team, their investee companies become sector leaders, drive rapid decarbonization, and build substantial shareholder value. Thank you.
Great. Thanks, Daniel. First session this morning from the company's hydrogen production and storage and distribution. To get that ball rolling, let me introduce Mark Page, co-founder and chief financial officer of HH2E. Mark.
Good morning. Thanks for the invitation today. As JJ says, Mark Page, the CFO and Co-founder of HH2E. We are a developer of green hydrogen power plants in Germany. I'd like to talk to you first of all about why we're doing that in Germany, and how we're approaching it, how we're tackling some of the challenges that Daniel was just mentioning, and then go on and talk about. Pardon me. That's me. Then go on and talk about, just in time, the Thierbach project, which is a project that we launched or announced, with funding from HydrogenOne and others, just last month. First of all, why Germany?
Daniel kind of mentioned the fact that policy is a key factor and different countries are following different models. Germany would have, I would say, a huge governmental but also societal and industrial commitment to the energy transition. The most prominent policy feature perhaps is the commitment to 80% of the electricity supply being in Germany, coming from renewables by 2030. A lot of this is driven by obviously the environmental issues which have been around, but also given the events of the last year, reducing dependence in a security sense and also in an economic sense. There is that real strong commitment and alongside the commitment to renewable electricity, a really big commitment to hydrogen, and in Germany that's green hydrogen, very green hydrogen.
And an openness to imports, but also an increasing recognition that to avoid some of the problems that we've seen in the fossil fuel world, countries need and can have and should have a domestic green hydrogen production. What is it that we are doing in terms of, you know, how are we tackling these particular issues? I would bring up this slide effectively talks and touches on some of the points that Daniel was just raising. What does it take for us to be the number one green hydrogen producer in Germany, which is the mission that we've set for ourselves as we really change the rules of the game?
In the short term, you see in the little kind of yellow box in the bottom right-hand corner, 400 megawatts of RED II compliant green hydrogen coming online by the end of 2025. That's really just the start. We want to get 4 gigawatts by 2030, which would give us a, you know, somewhere between a 20% market share based on, you know, the various forecasts that you would see. I'm looking at the clock, which is telling me I've got two minutes, which seems like okay. Right. I can go faster. Very good. It starts on the with sites, actually. You might not think of that, but in the end, everything starts in a very physical sense, with sites.
The best sites in terms of land, grid, access to renewable energy, access to pipelines, access to water. We have a team that's been out for a couple of years securing what we think are some of the best sites, and we will continue to work on those. I'll give you an example when I talk about Thierbach on that. I'll work anti-clockwise you also, of course, you need an experienced team. We have a team of senior executives from traditional energy companies and infrastructure businesses who've built big projects before. We have a team of senior executives who've worked in the renewable energy sector for decades and have scaled new technologies before. Of course, we have the next generation of people who really wanna make a difference in the work they do.
Policy is, of course, key. At the national policy level, we influence, and I think also it's fair to say we have generally tailwinds around the policy agenda, whether that's the regulations and the influence on what is RED II compliant, whether that is around the subsidy regimes for users, potentially for producers and also for infrastructure operators. It's also important to think about the regional policymakers in Germany. They control a lot of economic support issues. They control a lot of planning and permitting. We really see a very strong commitment in Germany by regional politicians to source green energy, baseload compatible green energy into their regions to anchor the decarbonization of industrial customers.
That's, you know, that regional support is obviously a key part as well of our community engagement to make sure we have people wanting us to build our plants in their vicinity. You need money. I do a lot of these presentations. Obviously, these are the best ones. We have a strong investor backing. We have a diverse capital structure. We agreed last year with HydrogenOne and with Foresight Group, which you may know is a large asset infrastructure fund, a series of funds committed to the energy transition. We have pr oject financing arranged for the first five projects that we will do.
It's the first phases of the first projects that we will do, with openness and flexibility to bring in public funds, bank debt as appropriate. That's important because 400 megawatts of capacity isn't cheap. You're heading towards EUR 1 billion of CapEx to get that, and that's just the phase ones. What we also have, and a couple of things which are perhaps also distinctive, we take a different approach, a somewhat different approach to technology. We're using mature technologies, but using them differently, and I'll talk about that. To pick up a point on customers, we are talking to a whole series of investment-grade customers across sectors. Let me jump there.
On the right-hand side of this chart, you have some numbers that you probably can see in all sorts of other forecasts. This is a mainstream German market, a German government market forecast, 13-20 million tons. If you assume some price degression by the 2040s, you're looking at over 100 billion EUR of spend, so effectively displacing a lot of what is spent on gas today. That would be spread across transportation sectors, industrial sectors, play a role in the power sector, filling in the gaps, where there's no sun or wind. JJ and Richard wanted me to talk about today. We are negotiating contracts today for delivery in 2025 with major customers in the millions and tens of millions of EUR per annum in terms of spend.
A lot of this is in the transportation sector, which has a huge policy push and financial push to get trucks in particular migrating to hydrogen. It's there for refineries which face huge penalties if they can't abate CO2, and green hydrogen is extremely valuable for them as they blend it into the mix. We have some early adopters in industry who again want to take from pipelines a blend of hydrogen into and ultimately move completely to hydrogen. Our technology and business model mix, often when people think about technology and renewable energy, you think about what happens when there's no sun and there's no wind. We have batteries.
It's also important to realize that as you put 80% or more of your electricity through solar and wind, you have huge peaks. At the moment, those peaks are currently being curtailed, and that will get worse for renewable energy producers. By taking, by investing in batteries alongside electrolyzers and making sure that we optimize how they work together, we can stretch hydrogen production to over 7,000 hours in a year. It's over 80%, if you like. It also gives us the opportunity to buy the surplus energy which would otherwise be curtailed. There's some good economics there that this is the 1-minute version. I can give you the sort of three-hour PhD version.
Certainly a complex model, which we believe gets us to be much more, firstly, much more reliable, efficient, and environmentally friendly than, if I may say, shipping hydrogen from some faraway desert, even if the sun may shine a few thousand hours a year there. We have a number of sites which we're working on, 2 which we've gone public on, Lubmin and Thierbach, and others in the pipeline that we would like to get to. 4 gigawatts, as I said, by 2030, whether it's 4 sites or whether it's spread across slightly more sites, we'll see. We can look at adding other green technologies, interesting to industrial users such as industrial, such as green heat and steam, from 2026 onwards. Also, some different electrolyzer technologies.
We need to make sure that we are advancing on the technology side of things and always looking for how we can scale and be cost competitive. Some facts about Project Thierbach. I'm guessing you don't know where Thierbach is. It is in Eastern Germany. It's very close, those of you who know that, to the Leuna chemical cluster, close to Leipzig. It is the site of a former coal power station demolished and completely cleaned up by the German authorities around 10 years ago. Thierbach, if you've grown up in East Germany, Thierbach would sound to you like Ferrybridge would sound if you grew up in the North of England or Drax or something like that. It has the advantage of being on the site of a former power station.
First of all, there's a lot of empty land, and there's a huge grid connection, which means that we can get to 1 gigawatt of capacity, and therefore feed in renewable energy. We're also about 10 miles away from an existing hydrogen pipeline, currently gray hydrogen. The hydrogen pipeline operator obviously very keen to connect us in. That pipeline connects to a whole set of chemical and industrial users. We'll also have the ability, people with trailers, to collect and use, and supply filling stations and so forth. I talked about the capacity, and the CapEx as well of around up to EUR 250 million.
We may get some of that through public funds, and we're working through the planning and approval stage right now with Hydrogen One, with Foresight, as mentioned, as well as some of the company's own capital. 6,000 tons of EUR production would give us just over EUR 50 million, and obviously that's just the start. You can multiply through and see the numbers as to where we'd like to get to. We believe that we're building a very strong business, changing the game of energy, and it's great to have Hydrogen One on board supporting us. Thank you.
Great. Thanks. Mark, and the rest of this panel will be around for the Q&A at the end of this session. Just to say that all of the slides that we're showing you today are available on our website. I can see lots of people taking notes, but you can get all the slides from the website. Next up, Jonas Meyer, who's gonna take us through the latest developments in Norway.
Thank you, JJ. Thank you, HydrogenOne, for having us here. Good morning, everyone. I think Mark and I have had quite discussions of whether we are sort of competitors or if we're more of the same. At least we survived dinner last night, Mark. Let's see where it goes. My name is Jonas. I'm the CEO of Gen2 Energy. In Gen2 Energy, we do some of the same things as what Mark do. We do large scale production of green hydrogen, but we do it in Norway instead of doing it in Germany. The current portfolio is roughly 900 megawatt of capacity, while we target 1 gigawatt by 2030. We don't only do production, we also go into the value chain that we'll look into a little bit. That was addressed as a challenge.
For us, that's all about sort of targeting core markets from Norway, both the local market, but also the market in U.K., Germany, and roughly down to the Rotterdam area. This is not all about PowerPoints and good plans. It's about having actual industry projects under development. For us, we own an old barrel factory on the west coast of Norway. It's called Jelsa for those on, in Norwegian, that we are converting into hydrogen as we speak. A core portfolio is three of our core project in the north of Norway. They're called Nesbruket, Holandsvika, and Åfjord for those that want to remember that. Today, we will look into the first 100 megawatt, which is called the Nesbruket project. Before I go into that, I just want to highlight sort of why do you produce hydrogen in Norway.
My chairman of the board, he says it quite simply. If you have the lowest CapEx and the lowest OpEx, you have a great opportunity to have a profitable project. For those of you that don't know the Norwegian power market, it's all renewable energy. I think 98%, the rest too is distributed heat. The power market is basically split into two, where the northern part of Norway is not that well grid connected to the southern part, it has a huge surplus of both wind power and hydropower. As most of you know, roughly 90% of the OpEx is renewable energy. Well, when you have a surplus of it, you have the cheapest power zone in the entire Europe, well, you have a low cost of electricity.
It's not only the low cost of electricity that is a key advantage. It's also about sort of having base load renewable energy available. For those of you that looks into wind power and solar power driven plants, maybe you can get the utilization or from capacity factor of maybe 50%, 60%. Maybe Mark can do some more with his batteries. The point is that when you can get 98% uptime, you get a quite low, levelized cost of hydrogen out of the facility. There is low transmission costs. I won't go into detail, but in Norway we have something called the k-factor, which is basically when you have a surplus power production, you get a negative grid rent, which is great for us. Lastly, we want to point out that there is ample fresh water available.
I think that goes for a majority of Europe, but maybe not in the sunnier parts that we were talking about. CapEx, I mentioned base load from hydropower is fantastic. We'll look into the first site as well. This is basically a site that used to store windmills and wind turbines before installing them in a wind farm. It's a completely flat gravel-based area, and I don't think you'll get much cheaper civil costs than this area. Lastly, strong support mechanism is always great. We discussed a little bit yesterday on how painful it can be to apply for these support mechanisms.
In Norway also, we have some OpEx support mechanisms every year back from the government. Into sort of the core of what we're doing and the core of what we're targeting to take FID on in 2023, this year. It's a plant located in Mosjøen, northern Norway, where you have the grid capacity available, the water capacity, and everything like that in place. At the 120 MW facility, we're trying to compress the hydrogen to roughly 350-380 bar, transport it over to containers, and we're actually developing and designing two of our own vessels, which is basically two small scale feeder container vessels that will transport the majority of the volumes to Europe.
At the right-hand side of this picture, we also have an option to acquire the neighboring site to expand this facility with a further 75 MW , and that will obviously have quite an impact with economies of scale, and especially when it comes to transport. We heard Barclays talking about the challenge about transporting hydrogen. I admit even though we have a cheap CapEx, cheap OpEx, transport is sort of a key hurdle to get over. At the end of last year, we acquired a minority share in a container company called Umoe Advanced Composites in Norway. It's one of the larger producers of glass fiber containers to transport hydrogen. We tried to, as you can see on the picture, have as little logistics as possible before these containers arrive at the vessel, keeping down transport costs.
It's not only about completing the Phase I . This is our second facility. You can almost see the first facility at the end of the fjord there. This is just a 10-minute drive further out of the fjord. It's a much larger site. It's a 500 megawatt site. When you come to 500 megawatt, you should start to look into sort of hydrogen and hydrogen derivatives, including ammonia, where you start to get an efficient sort of syngas process when you're above 350 MW or so. I think the beauty of this site is that there is not a lot of places in Europe where you can get 500 MW base load power available from green cheap energy.
Lastly, I just wanted to show as well, the third core site that we're looking into is looking almost exactly the same as the first site with power available. The land, as you can see, there is a port area next to it, and it's completely flat and gravel. You can basically copy-paste what we're doing at the first plant over to the second plant. This is how we try to build the portfolio and also to be able to supply customers with a security of supply from multiple sites, which is quite core to them. Lastly, a little bit of the backing of the company. We're a privately owned company. Thank God for that in these days.
We did an investment round two years ago with Vitol as the anchor investor, large oil and gas trader. Hopefully, we'll get them into a little bit more green energy than what they do today. We got two large Norwegian shipping companies called Höegh LNG and Knutsen Group that is working with us on the shipping part of hydrogen. In 2022, we were happy to get you guys on board in Hydrogen One together with Hkap. They invested in the company. We're fully equity financed to go into FID. The core target for this year is to, of course, take FID on the 1st plant.
What I forgot to say there is that we're currently in the middle of the front end engineering and design study, which will give us basically CapEx ±10% of all the nuts and bolts, and that will be complete in May. After that, we will probably take FID somewhere around second half of 2023. To sum it all up, pure play on green hydrogen, no gray, no blue. Large scale facilities in Norway developing the pipeline. Also own 100% of the distribution value chain, including ships and including containers. Basically the idea is to utilize that cheap electricity we have in Norway to create green hydrogen and to sell it to European market at the cost efficient level. That's it. Thank you.
Thanks. Thanks, Jonas. We're gonna change gears now and get into the storage and distribution of that hydrogen, and let's start with pipeline solutions. Martin van Onna is gonna take us through that from Strohm.
Thank you very much, JJ. Thank you all for coming over. I'll be presenting Strohm, a developer and supplier of thermoplastic composite pipe for hydrogen transfer. We see in Strohm a very strong connection between offshore wind and hydrogen generation offshore. It's a very good match, especially at longer distances from shore, where there is a good potential to generate hydrogen inside the wind turbine instead of onshore and transferring the hydrogen through pipelines to shore. In order to accelerate this development, what is required is a technology that is proven, reliable, and available at scale. This is what we in Strohm have developed. This is what we have track record that we've built up in conventional energy, oil and gas, and why we have this available today for the hydrogen opportunity. What is thermoplastic composite pipe? We developed this 15 years ago.
We're the first in the world, and we have by far the largest track record of this technology in the industry.
TCP, thermoplastic composite pipe, is made out of thermoplastic materials, as well as either glass fiber or carbon fiber. It has no corrosion. It simply does not corrode, so it can handle, CO2, it can handle hydrogen, it can handle a very large variety of chemicals without any degradation, without any corrosion, or indeed no embrittlement. Proven and reliable, we have the largest track record in the world offshore and subsea, and even starting also onshore. With that, we have proven that the certifications that we have in place, the qualifications that we have in place are readily available. TCP, when considered from a total installed and total life cycle cost, total life cycle footprint point of view, has been shown and proven to have a more than 50% smaller footprint. This is third party validated by DNV from Norway.
All in all, it provides the lowest cost opportunity for pipelines offshore. How do we develop this and how do we position this? Three basic elements to our technology. One is the manufacturing technology that we developed ourselves. We developed this in-house. We keep it confidential, we have patented it. You see this in a little movie. That's what we have as a starting point in our factory in the Netherlands. We combine this with material knowhow, where we're able to use a variety of polymers and fibers, and we understand the influence of pressure, fluid, temperature, and time on the performance of the materials. Lastly, we can translate this into a design approach that allows us to design and qualify all our systems first time right in a very conservative market.
With that, we are here, what you see on this, on this picture. We have worked for a long time to get established and create a track record. This year we're growing more than fourfold compared to last year to EUR 40 million revenue. This year will also be our first year with EBITDA. The technology has really broken through in the marketplace. We have the largest backlog in our history. More than EUR 60 million of active projects that we have under contract with this year's revenue completely secured. EBITDA, we're very proud, we have a first large scale project for hydrogen already in production this year for Wilhelmshaven, also Germany indeed, where we will be making the first offshore pipelines that will see use in Germany by the end of this year.
Thank you very much.
Great. Thanks, Martin. To complete, this session, very pleased to welcome Dean O'Connor, who's the CEO, excuse me, of NanoSUN, who's gonna take us through, moving hydrogen, in the onshore environment.
In the offshore environment?
Onshore.
Onshore. can you hear me okay? morning, everybody. Dean O'Connor, as JJ said. I'm representing NanoSUN. NanoSUN was founded for a very specific purpose, a little different from many of the other people here. We're focused on a specific application. We're all about accelerating the adoption of hydrogen as a fuel in mobility. I seem to be missing the slides.
Press the button on the remote.
There we go. Today my theme is the connective tissue for the hydrogen fuel market. Folks, I don't need to tell the people in this room, but hydrogen isn't a secret. Even beyond this room, the benefits of hydrogen as an energy carrier and the potential of it as a fuel have been known for over a century. Why then we have to ask, has hydrogen failed to get off the launchpad as a transport fuel until this point? I think empirically we would have to say that it has failed.
In large part, our conclusion is that it's about the lack of a working, affordable hydrogen refueling station network, and that's specifically the challenge that NanoSUN is setting out to address, especially targeting the hardest to electrify segments of heavy transport like buses, trucks, vans, et cetera. In recent years, the energy transition and the green arms race that Simon referenced at the beginning, has directed huge investment towards the hydrogen value chain. I borrowed this graphic from Citi because Citigroup, 'cause actually it's a pretty nice representation. But what you see if you look a little more closely is that the vast majority of this investment, and especially the investment in innovation and technology development, has been directed at the two ends of this value chain.
Into hydrogen production on the one hand, and into the end use applications on the other. Actually, even if you look at the people that are gonna talk to you today, I think you see that representation. Really, the only two companies that represent the middle of this value chain that are here today are, you know, Strohm and NanoSUN. Huge investment, huge progress being made at the two ends of the value chain.
What we hear constantly is that OEMs and producers assume that the storage, transportation, and dispensing infrastructure will be there when the time comes. But let me tell you, ladies and gentlemen, without investment and innovation in this area, what we're gonna find is it may be available, because there are mature technologies in those sectors, but it's gonna be available at a cost that's extremely high. Even today, before we see the benefits of the investment in technology and production, before we see the benefits of scale, even today, the cost of distribution transport. Sorry, the cost of storage, transportation, and dispensing of the hydrogen is more than 50% of the delivered cost of a kilo of hydrogen.
Imagine what that proportion becomes if it doesn't move at the same pace of innovation as the benefits of scale kick in on production. We'll see distribution perhaps accounting for, you know, well, certainly much more than 50%, but, you know, could be the vast majority of the cost of a delivered kilo of hydrogen. We need to do something differently. Let's take a closer look at just one part of this chain. I'm actually gonna set aside the kind of pipeline solutions. you know, it's fantastic that there is innovation happening in some parts, but the conventional approach for compressed hydrogen is really important. Why is it really important? Well, the reality is compressed hydrogen is the future, certainly in Europe for at least the next 10-20 years.
In compressed hydrogen, we've already heard about it. You know, there is this wave of investment in large scale projects. Hydrogen is going to be produced at large scale in distributed locations. Once it's produced, it gets compressed, and conventionally, it would be filled into a truck, and that truck will be driven to the point where vehicles or other, you know, end use applications exist. Then the traditional approach would be to build a hydrogen refueling station, a, you know, static refueling station, significant investment to then compress that hydrogen again and pump it into the vehicles. The issue with this is that it is massively capital intensive, and almost no drop point for hydrogen has a large enough number of vehicles that there's any possibility of recovering the capital on this.
Actually, if you try to recover genuinely the capital on this, what you find is that these projects are uninvestable unless they're completely underwritten by subsidy. If you're in an environment where the price of hydrogen is regulated, as it is in most places in the world, the cost of recovering this capital is far, far more than the price of hydrogen that's available. That's all the bad stuff. The good story is that I mean, this is the problem that NanoSUN set out to address. What did we do? We reinvented effectively the hydrogen refueling station. Our version is called the Pioneer Station. It's mobile, it's much less than half of the capital cost, and it's available today.
In our model, what works differently is you still produce the hydrogen, you still compress it at the locations that have been discussed already. You fill it directly into the mobile station. It's onboard storage. You transport that module to the place where it's going to be consumed, and you dispense it from that same module directly into the vehicles. When the hydrogen on board is used, you simply take the module back to the source and you refill it. If you want continuous operation, you have two or more of these modules operating so that you swap full for empty. That means it's completely flexible.
You can serve multiple drop points even, you know, on the same day as we have done, and overall, it results in a far lower cost of delivered hydrogen because the recovery of the capital is much more efficient. If you look at it at a larger scale, I mean, this is a kind of larger scale picture of a similar story, there's a really good reason that we are seeing this wave of investment of large scale hydrogen production. It's because hydrogen production is a chemical engineering process, and chemical engineering processes work best at scale. They're most efficient at scale. However, as I think it was Jonas said, they're also most efficient if you happen to be able to collocate them with sources of renewable energy.
Rather inconveniently, those sources of renewable energy tend to be in remote areas. Even more inconveniently, vehicle locations are not. They tend to be diffuse, they tend to be nearer to population centers, rather annoyingly, everybody wants to start at the moment with a relatively small number of vehicles. That means if you want to build fixed stations and you have these, you know, deployments popping up all over the place, the amount of capital that's needed to build the local dispensing stations is enormous. Tens of billions of EUR in addition to the production, all of that capital is inefficiently deployed.
Even as vehicle locations scale, we'll find that, you know, they'll reach tens of vehicles, but actually hundreds of vehicles in a single site's going to be relatively rare because what you see, even the largest operators of vehicles, they typically want to have more than one depot because that's more efficient from an operational point of view. NanoSUN's Pioneer and in fact, as a representation of mobile refueling, NanoSUN's Pioneer and all mobile refuelers really do represent the most efficient way of deploying capital. The, you know, the deployment scales as the vehicle fleet does, and therefore, our conclusion is that mobile refueling will be the connective tissue that links, you know, large scale industrial production and diffuse operators of vehicles. A little bit about what the product is.
NanoSUN's Pioneer Station is the world's first mass manufactured mobile refueling station. Think of it as a dual solution. It's a fuel tanker and a petrol pump or a fuel pump in one. It also if you think about it from a gas point of view, it's storage, distribution, and dispense in a single box. Sorry, we assemble that box in a factory, which means it's efficient. It means it's fast to deploy. That's what enables us to do it at the lowest possible cost. What it means from a deployment perspective is rather than taking, you know, somewhere between one and two years to permit and build fixed infrastructure, this can be deployed in three to six months from conception to realization.
Or at least it will once we actually scale the manufacturing a little bit more. It's taken a little longer last year 'cause I think everybody understands manufacturing's been hard over the last 12 months. It's also very cost-effective. It's much less. It's half, less than half. It's much less than half the cost of the smallest conventional fixed station. It's also really reliable 'cause we don't do compression on board. We do compression just once in the manufacturing site, which has to get done anyway. We just compress to a slightly higher pressure, and we transport at that pressure. I'd like to finally say just a couple of words about impact. We did some work over the last year because we're already starting to deliver these Pioneer Stations.
We did some work over the last year about the impact on emissions associated with using it. This was done as part of a European-funded project with an organization called KIC. What we found was the following: every time we fill a Pioneer station, and we use it to refuel heavy-duty vehicles, just that single fill abates a level of emissions that's about equivalent to half a year of the average UK person's carbon footprint. If you look a little bit longer, it takes one or two months to recover all of the emissions associated with manufacturing the steel and the tubes and everything else that's used in the manufacturing of a Pioneer station.
Over its entire life, using a Pioneer Station to refuel heavy-duty vehicles will produce a level of emissions avoidance that's roughly the equivalent of 400 cars on the road. That, ladies and gentlemen, is a big part of why NanoSUN was founded. I think it's a big part of why many of us are here today, and I think we'll all agree that it's an important role of the industry in addition to efficient use of capital and making a good business. Thank you very much.
Great. Thanks to the presenters for that session. We've got a good time now for Q&A, and I think there are colleagues with microphones moving through the room. Who'd like to ask a question? Gentlemen. Perhaps you could say your name and your institution.
Ken Rumph from Goodbody, more or less loudly. Firstly, thanks to HydrogenOne for setting this up and all the speakers. For the 2 developers, you've both chosen alkaline electrolyzers, I believe, for the 1st projects, or correct me. Is that purely a cost decision? Is it about the nature of the kind of electrical supply you've got? Then I was gonna ask an additional question to NanoSUN, I was trying to think, is there a point where, you know, if volumes build up, you'd have to be sort of shuttling lots of, you know... I can see how well it scales. That was a very attractive argument.
Is there a point where your petrol station is like a constant, so to speak, your hydrogen station, a constant stream of containers arriving? Thanks.
Maybe I'll start. Can you hear me? For us, it's about two things that the choice of electrolysis, primarily it's obviously about cost, and that comes from the electricity source. We don't need the flexibility of a PEM electrolyzer, and for those of you that know, the PEM electrolyzer has a lot more expensive materials, and it's a lot more expensive than the alkaline. The second part is that we try to be as low on technology risk as possible, and try to use mature electrolysis.
Sorry. You want me to start over or? Yes. Okay, let's start over. Long story short, alkaline is cheaper, and we don't need the flexibility of PEM. Second part is that we try to have as reliable technology as possible, and a few of those solutions that's been around for more than 10 years is, amongst other, alkaline electrolysis.
Thank you. Very good summary. Yes, indeed, we're also going for the idea of a baseload electricity supply effectively, and working with alkaline. We're also, of course, there's just a question of looking at the supply chain, who can deliver, can deliver at what cost, can deliver in what time frames. You know, we do take that perspective as well as we think about which suppliers we want to work with.
The second question was, is there a point at which the mobile refueling station model has to give way to fixed station? I think the answer at the moment looks like yes. One of our use cases is actually with one of the larger fixed station developers. They already are convinced that they should build a fixed station. If you build a fixed station with any level of future-proofing or any level of additional capacity, you build it with significant surplus at, in the current time. What they've concluded is you build it with that surplus, but actually you then put the surplus into mobile stations, you use that, and you move that elsewhere to build next-generation demand.
In the same way, I think that you reach a point, you know, at something like 50 vehicles or something north of 50 vehicles, heavy-duty vehicles, especially if they're using perhaps 20 or 30 kilos a day, you know, a ton and a half, you're moving a lot of hydrogen. You're removing a lot of compressed hydrogen. It may even make sense at that point that you consider making it locally. You know, that's a, that's a kind of 3 megawat scale, which is really at the bottom end of what you might consider to be viable, but it might even be worth considering. It certainly would be worth considering, you know, liquid hydrogen if it were available. I guess at some point there is a threshold that it becomes less practical.
That threshold can be extended by making the transport modules larger, so you can transport it 40 foot rather than 20 foot. You can probably move a ton at a time, and the model continues to work up to a point. There, there comes a threshold. The whole point though is that if you delay the capital that you need for that fixed station until you can load it, then that's way, way more efficient. You still haven't wasted the capital in the mobile station because you have two options. It either is the backup for the fixed station, or you simply redeploy it to build your demand in another location.
Great, thanks. lady at the back.
Thank you. It's Lynn here from Shore Capital. A couple of questions for NanoSUN. Just like to know what your IP is. Is it a matter of actually putting together a ready off-the-shelf kit and making sure that your IP is the way you design the whole system together such that it's most efficient? Secondly, who's your ideal partner? Is it the back-to-depot partners such as DHL, for example, or is it the service stations up and down the motorway, for example? Lastly, how close do you have to be to the source of your hydrogen, whether it be green, blue or whatever it is? Thank you.
I should begin that. Partner. Close to the source. First of all, IP. There's an element of this that's about good engineering. You know, that's important because it's not easy to achieve compliance with the Transportable Pressure Equipment Directive, the Pressure Equipment Directive, ATEX, and all of the other elements of legislation that govern a mobile hydrogen refueling station. That alone is a significant level of know-how and IP that we possess. How do we know we possess it? Well, we've built some. There is some patent protection as well. How you control the interface with the vehicles and how you're able to configure the station for optimal performance in dispensing hydrogen into different vehicles.
For example, if a van shows up that requires five kilograms or seven Kilograms of hydrogen versus a truck that needs 20 or 30, how you configure the banks of hydrogen on board to get most efficient use of the gas that you've got. Remember, you're not compressing the hydrogen again. Therefore, making use of the high pressure inventory in the most optimal way is really super important. That's our main area of patented IP. The second question was about ideal partner. I guess what we've seen is we've got a number of use cases. In the main, our customers are people who want to take hydrogen from 1 location and deliver it into one of those applications that you cited. It's not a DHL, it's actually somebody that DHL will buy hydrogen molecules from.
We're essentially a manufacturer of capital equipment. We are not a seller of hydrogen. Our customers are people like, biggest customer is an operator of fuel stations in Germany who also happens to be an industrial gas manufacturer. They're also one of our strategic investors. Or, and one of the larger renewable energy firms in the U.K. that wants to go all the way from having wind farms and PV farms to delivering hydrogen to vehicles in different places in the country. They're kind of our ideal customers. In terms of closeness to the source, there is a simple piece of math that says for every mile that you travel with something on the back of a truck, there is a cost.
That cost is probably in the range of GBP two or three a mile or a kilometer. There is a number, but right now one of the issues that we're addressing is that you simply can't get the hydrogen to where you need it. Actually, the level of price elasticity is relatively high at the moment. I mean, we're certainly aware of projects in the U.K. where people are paying prices for hydrogen delivered, you know, that are north of GBP 70 or 80 a kilo, which makes no sense from an economic point of view. Right now we're dealing with a situation where if you've got hydrogen anywhere and you can put it in something that gets it to the place where it needs to be, people are willing to deal with that.
There, you know, in a future state, there probably is a set of economics that says within 50 to 100 km is probably about your logical radius.
Lots of questions. Let's go to the front.
Thanks. Yeah, Stuart Penson from Hydrogen Economist. We're a industry news service. Quick question to the producers on the panel. Just thinking about offtake, and the contracts that are under discussion, could you give any kind of color around, you know, what those contracts are gonna look like in terms of duration, and maybe something around the sort of pricing basis that people are talking abou in the market at the moment?
Exactly that. yeah, sure. I think first of all, in Germany we have a particular situation that there are certificates for greenhouse gas abatement, which anyone using hydrogen, whether it's in trucks or in refineries or something, benefit from. Those currently are trading with values, if you translate it into hydrogen, sort of the per kilo price, that are well north of EUR 20 per kilo.
That's going to the user. That doesn't mean that they give it all to us, and we're not expecting them to give it all to us, but it provides a degree of price support, as you can imagine. The discussions that we have is to what extent we simply take a fixed cash amount, and they keep all the certificates and do trade it at whatever value they can get. The other option of course, is that we take a split, we take a fixed cost which is covering our cost, the fixed payments are just covering our costs margin, and we get to access the value of some of the certificates. That's one of the conversations which we're having.
When you're in other sectors where it's more about industrial customers, there are also certificates available in terms of them reducing their emissions. Those tend to be lower. We're having discussions with people who want pure hydrogen, either delivered through pipelines, and the pipeline charge is reasonably modest, or which are delivered from factory gate. At the moment, we're managing to hold the position that the customer pays from factory gate. In 5, 10 years' time, I'm sure that will no longer be the case, but that's the starting position. We're being successful on that point. People accept that point. There's a whole set of discussions around who pays for the different levels of compression and purification and so forth. There's a whole set of technical details.
I guess you really, you started with the question of duration. I mean, I think anybody right now, at least given some of the limited supply of green hydrogen, people want to contract for long periods of time. I think we're very comfortable with 10-year offtake agreements. We do have to look at some of the legislation around long-term contracts, and being whether they're compatible with competition laws. We've got some work to do there. Somewhere between 5 and 10 years is probably the sweet spot. The pricing is certainly nowhere near EUR 70 or EUR 84 paying there.
I mean, I think, our point of view is the sort of pricing that gets talked about, maybe some stuff on the internet, the kind of a couple of USD per kilo is just total bollocks, and we do not support it and will not happen. If you look at where will we get to, you know, we're comfortable. I guess I gave a kind of a steer in my previous presentation that we'd expect to be well north of EUR 8 per kilo and ideally really well north of EUR 10 per kilo. We are building something which we intend to be sustainable. We're not gonna try and just kind of put market squeezes on.
I think one of the things we need to learn as we move to a green energy economy is the sort of market manipulations we've seen in the last year are not helpful for anybody. We're trying to set good prices which reward the risk of people who are taking early-stage investments, but we're not trying to kind of go crazy on that.
I'd say that's a very good and informative answer, Mark, so I'm not sure if I have too much to add on. We focus on long-term, large offtakes, usually 10 years, preferably coupled with a 10-year PPA on the power side as well, so that you can lock in almost an infrastructure play. To make it bankable, which is what we need for our projects to be bankable. Yeah, if we can get those levels on price, I think we'll all be happy.
Great. The gentleman at the back.
Hi there. Thanks for all the presentations. Christopher Leonard from Credit Suisse. If I could just ask as well on the developers' side, how comfortable you are with how the electrolyser producers are developing, especially on the stack sizes. Do you need them to do more to hit your average project sizes? Equally, in the scale-up, how confident are you that they can deliver for you by 2025 so you can get to 400 MW or 120? Are you looking at maybe more experienced players in the sector that have a history of delivering, you know, large sizes? Secondly, looking at the average hours, so 7,000 hours a year, is that using green energy PPAs, or are you directly co-locating with renewables on the electrolysers?
The last question, if I can, is just how significant do you think European subsidies could be, particularly looking into Q3 this year, where maybe we see a launch of sort of fixed premiums for green hydrogen to mirror what we're seeing in the U.S. on the IRA, and then how helpful do you think that can be for the $8 per kilogram you just spoke to? Thanks.
Yeah, sure. We're just splitting it between us. I can talk about the electrolyzer a little bit. I used to work in investment banking, financing some of these new electrolyzer projects. I think what is core to us is to see sort of those ITM, Nel, those experienced players have increased capacity from, well, I guess the 30, 40 MW per annum to 500 MW plus per annum. I'm talking about 1 GW from one year ahead or so. We're both looking at sort of the scale of 100 MW. I think if they have 500 MW available each, then that's sufficient to be able to supply us.
However, what you need to keep in mind is that, as most of you probably saw, there are contracts for roughly 100-200 megawatt projects as well. It means that you only need a handful of them, and then your project could potentially be delayed for a year. To secure that supply of electrolysers at the time, for us, that's about when you're finished with the feed, then you're going into the construction phase. That's core to the business. Obviously, for those of you that follow at least the listed players, they're also showing sort of cost curves on the electrolysers, and you're able to achieve that economy of scale when you go to this 500 to megawatt, to 1 gigawatt scale of it.
I thought I'd give a little bit on the subsidies in Norway, just to give you the scale. We have something called the CO2 compensation, which is basically a factor that you multiply with your power consumption.
You multiply it with the CO2 emission allowances in Europe, and that's equivalent to roughly EUR 1.5 per kilo every year now. Then you have the European schemes that maybe do more of a CapEx sort of it, but that's the Norway side of these subsidies at least to have a look at it. Then I'll leave you to PPAs.
Thanks. I mean, I think you definitely hit a, you know, a key point for us as well around electrolyzers and frankly also we're big into batteries, battery supply capacity. It extends even beyond that though, into some of the electrotechnical components. The whole supply chain needs to scale. Partly if they were sitting here, and I guess they are later on, they would say they need us to be placing the orders in advance. We've got, we've all got to commit kind of in tandem. I think we'll make that happen. We certainly believe that we'll have a portfolio of vendors, but we'll have, you know, a few of those who we have long-term commitments to.
In terms of how we source electricity, yes, PPA, so we're not expecting to co-locate. I mean, obviously one of our sites is on the Baltic coast, so there's a huge amount of offshore wind being built there, so that does help. We're in zones of Germany where there is a huge availability of solar and wind, and the grid operators are able to accommodate that. We are also under RED II. We can access any electricity drawn from the grid itself at times when over 90% is renewable. A very kind of sunny, windy day, everything is counted as green if you're buying it from the grid without a PPA.
We'll have a portfolio of those different aspects to get to the 7,000 hours. In terms of I'm not selling anything at EUR 8 per kilo, by the way. As I said, it would be well north of. In terms of subsidies, the US scheme is has this sort of beautiful simplicity, you know, kind of here's your kilo, here's your $3. We don't have something like that, but I imagine what we have at the moment in Germany that I was referencing, and also applies to, say, people making filling stations or the rest of it, is a lot more complicated. There is a lot of money there.
I think what we'll see coming through from a European level and then also at, probably at German national level or the EU national levels, I would expect will be complicated, and that doesn't make things easy. In the end, if you work it through, then I think we will see similar sorts of funding available.
Great. Let's, let's go over here, the gentleman in the top.
Nigel Hawkins, Hardman Investment Research. My question is about the U.K., and that accounts, as I understand, for 58% of the portfolio value, I assume, based on December 2022 net valuations, and includes NanoSUN. My particular question is comments from Baroness Parminter, the Chair of the highly influential House of Lords Environmental Committee. She recently stated, and I quote, "Frankly, hydrogen is not a serious option in the short to medium term." I assume you believe that the Baroness is much mistaken, but why?
I should perhaps take that question or perhaps...
Absolutely.
I can't claim to have met the lady, so I wouldn't want to be responding to things that she may or may not have said. I mean, look, we see a $2.5 trillion industry here by 2050. We see a portfolio of invested companies presenting today that have generated GBP 30 million of revenues last year, which is 110% higher than the prior year. I kind of disagree with all those comments, actually. Delighted to meet the lady if you'd like to arrange that.
You probably wouldn't disagree with the view it's had an impact on your very poor share price performance during 2022.
I think it's difficult for us to make a specific comment about our share price. There are MAA rules that go around that. I would just say that the investment trust sector, and this is an investment trust, has been weak over the last several months, really to do with the interest rate cycle and a risk off market. I would just characterize it in that way, and I think our share price has moved in line with many other investment trusts.
With all respect, I think it's moved in line with many of the renewable energy infrastructure companies, or indeed many of the larger ones. Some have gone up by over 20% in 2022. I think I heard saying yours fell by almost a third.
I, again, it's difficult for us to make specific comments about our share price. If you look at the way our shares have moved relative to the listed hydrogen sector, I think you'll find we've outperformed quite nicely.
Thank you.
Perhaps one more question, and then we'll break for coffee.
More on the technical side, just on NanoSUN. These trucks all that you're using or the fleet that you're using are gonna be deployed on trucks. Where do you think these, the scale of these containers could go to be able to move? What kind of capacity would you be able to shift at the max, given the current fleet of big trucks shifting these kind of containers around the world? Just.
Sorry, just to clarify, do you mean per load, or do you mean at, in an aggregate of, you know?
Yeah. Yeah, per load. It's just the physical load.
Certainly, and if... This is really constrained by two things, by three things actually. It's volumetrically constrained by how much, you know, volume you can put on the back of a truck. It's constrained by weight, you know, so obviously on the, on the truck there are limits at something like 44 tons at the moment of what you can move. It's constrained by pressure that you can transport in.
In cylinders. Certainly, in a 40-foot package, so we're at, currently at 20 foot, but there's no reason that we can't move to 40 foot. In a higher pressure environment, which is our next generation of technical development, you know, certainly moving something in the range of 1 to 1.5 tons becomes quite achievable. 1 to 1.5 tons, you know, average bus, operating in a city, on a city duty uses somewhere between 20 and 25 kilos a day. 20 is probably about a good average. If you've got a ton, you've got enough fuel, to service something like 50 buses.
Okay, thanks. For Strohm, if I may, thanks for the opportunity. Can you talk through perhaps some of these technology providers who are the most advanced to deliver an electrolyzer that will deal with intermittent offshore based on their wind farm kind of technology? Is anyone out there that stands out?
Thank you very much. Yes, we have a collaboration with Siemens Gamesa, who we believe is the front runner in this space. We've been working with them for the last three years, where they are pioneering the development of electrolyzers. I believe they are more on the PEM side, working with Siemens Energy, where they are developing the electrolyzers to be integrated into the wind turbines directly offshore. We've been working with them on this for the last three years, where they're developing all the technology steps to prove this in the field. That is on the OEM side.
We see parties like RWE from Germany, Vattenfall mainly, and Ørsted coming up as developers that are keen to be the one of the first to put actually the electrolyzers into the wind turbine. We expect this year to see the first application or the first pilot to be invested in the North Sea with an integration of electrolyzers in the wind turbine that we expect then to come on stream in 2024. Following in from that, we see mid-scale projects coming in 2026, 2027, then turning to large scale projects from then onwards.
Great. Thanks. Let's bring this session to a close. Thanks again to all the presenters. There's gonna be a 20-minute coffee break, and the guys are all around to carry on the Q&A. We'll reconvene at 11:40. Brilliant. Thank you. Right. Let's get the next session started. We're gonna change gears now and get into the critical supply chains. This session is all about electrolyzers and fuel cells. To start us off, we're gonna have a presentation from Sunfire, with Benedikt Minneker, who's the Chief of Staff at Sunfire. Benedikt, over to you.
Okay. I think I need to go forward. Okay. Hi, everybody. Thank you, JJ. Thank you, Richard. Thank you to the whole HydrogenOne team. It's a pleasure to be here and to introduce Sunfire to you. I want to zoom out a little bit and give you an idea about the plan and idea that our founders had when starting Sunfire. In the beginning, Christian, Nils, and Karl were driven by the idea that it needs two things to remove fossil fuels from energy production. The first is quite obvious today. You need to electrify as many processes as possible and to use renewable power from hydro, solar, or wind to actually make it green.
Today, we are not there, we believe 50% of all energy consumption can be electrified, which leaves still a huge part of energy consumption which needs to be served by molecules. Electrons cannot do the job here. You need molecules such as hydrogen or hydrogen derivatives in order to decarbonize industrial processes. That's the basic idea behind Sunfire. We think that hydrogen is the missing piece to reach net zero goals. Who are we? Sunfire is a developer and manufacturer of electrolyzers. Electrolyzers are the plants that basically split water into their components, hydrogen and oxygen, and we have two technologies in our portfolio. First, we have pressurized alkaline electrolysis. This is our commercial and robust product, and today we are realizing projects with this technology in the multi-megawatt scale. When we look on the other hand, we have solid oxide electrolysis.
This is a technology that is currently in a validation phase, and this technology stands out by its high efficiency characteristics, and we think it will be commercial in 2025, 2026 on a multi-megawatt scale. Since the beginning of Sunfire, we were always focusing on the hard to abate sectors, so customers from steel, customers from refining, and customers from chemicals. In the production of ammonia or production of methanol, this was the focus of Sunfire. Today, we're also serving customers from the utility space and also mobility, and there especially, regarding looking at shipping and aviation. Where is Sunfire located? We are based in Dresden. It's the capital of Saxony. Which is for us a very beneficial location because it has a great access to talent.
It's, it has the highest density on research institutes in Germany, and also there are very beneficial funding schemes for technologies such as electrolysis and hydrogen. Okay, why is the electrolysis space so interesting? We see a huge market opportunity in Europe. Just looking at the European targets for installed electrolysis capacity until 2030, we see that the goal is to have 240 MW of installed electrolysis capacity in Europe. This translates into a market opportunity of EUR 120 billion. Just to put this into perspective, the wind industry actually took 22 years to reach this installation, so 240 GW of installed capacity, and we want to do it in eight years. The ambition is there.
We need to move fast, I think everybody in the room agrees to this. We believe the demand will be high, and on the supply side, we only see several players that can actually deliver on this opportunity. We think Sunfire belongs to this group. Why do we think this? Sunfire has an extensive track record in realizing electrolysis projects. Round about 70 projects have been realized internationally. We also are on the way to ramp up our production capacity to over 750 MW by the end of this year. We have one of the largest or the largest electrolysis teams in the world with over 510 employees. It's great to see.
When I started at Sunfire in 2021, we had 250-300 employees, and this just shows how rapidly the space is growing. Also Sunfire is great at attracting and retaining talent. One further reason that's very important for us is that we have good access to capital. We were able to raise over GBP 500 million in capital in total. There is one part is from public funding and the other part comes from venture capital and private equity firms. How are we performing in the first wave of electrolysis projects, and how are we capitalizing on this opportunity? We are today already realizing projects with RWE.
We are planning to commission a 10-MW plant in Lingan in 2023. We are also currently realizing a project with Power2X with a planned commissioning of a 20 MW plant in 2024. Additionally, we are looking at signing contracts with Uniper. There are two contracts for 30 MW each. We also have an agreed off-take agreement with Copenhagen Infrastructure Partners in the size of 640 megawatts. In order to actually deliver on this commercial opportunity, we are working very hard to increase our production capabilities. When we think about production scaling, we think about it in Phase III . First, you have an R&D production. In the second phase, you have a pre-commercial production. Then you move to a commercial production.
When we look at SOEC, we are still in the R&D phase, we have a capacity of 10 megawatts per year, we are looking to move this and develop this into a pre-commercial production with 50-60 megawatts per year in the near future. When we look at alkaline, we have two production streams. We have one site in Monthey, Switzerland, that covers all production steps. You have the metal forming part, you have the electroplating part, the stack assembly, there we have a capacity of 60 megawatts per year, which is a pre-commercial production site, which is not automized yet. In addition, we are looking to develop a commercial production stream in Solingen and in Chemnitz with Vitesco.
There we are looking to reach a production capacity of 750 megawatts a year by the end of this year. To zoom out again a little bit, Sunfire has went through different phases in its company history. In the beginning, Sunfire was purely focusing on R&D. It decided that it wanted to be an electrolysis player that only focuses on SOEC and alkaline. Today we say we want to do what we do, we want to do it right. We want to focus on the things we promised our customers, and we want to be a reliable partner that has industrial processes, not only production capacities, but also supply chain and the capabilities to execute on the products.
Today that's still a challenge, and we are ready to deliver, and we think that Sunfire is positioned very well to do this. In the near future, we're obviously thinking too about other markets. There's opportunities in the US, on Asia. Today, this is nothing where we put risk in because we want to deliver on the projects that we have today. Thank you very much. That's the story of Sunfire.
Great. Thanks, Benedikt. Let's keep going with with that solid oxide theme. Now to introduce Enn Õunpuu, who is the CEO of Elcogen, which is a leading player in supply of solid oxide cells and stacks.
Thank you, JJ, for this introduction. My name is Enn Õunpuu. I'm the founder and CEO of Elcogen. Elcogen is a company established about 22 years ago to develop new generation of solid oxide technology.
We are currently commercial phase, delivering products to customers in 160 customers, 25 countries globally. Our main product is solid oxide cell and stack. But first of all, maybe a short introduction and then the explanation why solid oxide technology is our choice. First of all, if we look at the cost of hydrogen or cost of electricity. We have several factors which determines the cost. One is a CapEx, and then the other thing, of course, is how efficiently can you convert either electricity to hydrogen or fuel to electricity. Solid oxide technology is far ahead of any other technologies in conversion efficiency. That makes hydrogen more affordable compared to other technologies.
I think also one of the most important features of solid oxide technology is its reversibility. Because end of the day, we need green hydrogen. Green hydrogen we can of course produce only from intermittent solar or wind. Of course, Norway has a different situation. They have 24 7 green hydro available. In most cases, you have to use solar or wind. The solar wind availability is somewhere around, I'd say 10%-60% of time. Most of this time you have very high electricity prices, so most likely you sell electricity to grid rather than produce hydrogen from very expensive electricity. That makes say PEM and alkaline electrolyzer CapEx utilization very low.
With solid oxide technology, basically you can switch over in very short time to power generation using any other fuel. And then that actually makes also potential to earn more money on power production and selling electricity when it's high price on the market. And yeah, that's I guess something very special on this technology. People sometimes often ask where are we focused on what applications. We provide core technology, which are cells and stacks, for basically all applications where technology can be used, starting from small, even portable applications for power generation, mid-size commercial power generation applications, up to large scale electrolyzer projects. We provide core technology for system manufacturers.
Very short overview of customers in different applications. As you know, automotive industry is now being, you know, transformed from combustion to electricity, and that's where also automotive industry looks new opportunities entering into fuel cell and hydrogen technologies. Atsumitec is one of these Japanese automotive industry component providers who use our cells in their system. Genvia, you know, is joint venture between French research institute CEA and Schlumberger, developing large scale electrolyzers using also our technology. Inside, Convion is a Finnish fuel cell system manufacturer, spin out from Wärtsilä. They produce 60 kilowatt fuel cell modules operating in methane, either natural gas or biogas.
Some might say that methane is not environmentally sustainable. As in fuel cell systems, we don't combust, but just electrochemically convert fuel to electricity. It means that we don't have any emissions, especially NOx is zero. WattAnyWhere is a Swiss company having systems for EV charging using biofuels, and they can do on-site generation for this kind of EV charging applications. Reverion is a German company, and here you see an excellent example of this reversibility. They use locally produced biogas for the power generation and local solar for hydrogen production in the same system, again, using our core technology.
These are just a few of the samples, and of course, a Korean shipping, offshore engineering company with whom we just signed an MOU, using our technology, will develop first stationary power generation on a few hundred kilowatt size and then converting it to marine applications, especially for deep sea vessel, base load. What we see on the market today, and it was also discussed earlier, and there was one question for hydrogen project companies, is the technology available on the market to realize all these big projects on hydrogen production? Answer is no, because as it was also in my before me, very good presentation about the market and actually the need of products on the market, it is really big.
Today we see that most of the financing actually goes to project financing. Most of these cases, projects are still subsidized one or other form, but it's not sustainable. The subsidies are mainly needed because CapEx is too high. In order to get all the projects feasible, we need to reduce CapEx heavily. Fundamentally, there is no problem in, in fuel cell, electrolyzer technologies to have low CapEx. It's, it's all about the scale. The same as we have seen, especially with photovoltaics. Already 20 years ago, let's say the net material cost in end product was very, very low, but scale was small and products were expensive.
That's actually what we need to do now is to ramp up production to get equipment cost down and also this makes possible feasible hydrogen generation projects and also power generation in all applications. Now we are currently planning also new capacities. Today, we have slightly below 10 megawatt annual electrolyzer capacity which we can provide to our customers. New plant we are now building is up to 200 megawatt, and this will be the first large scale blueprint for our next expansions. Of course, we need a team for that, so we did quite significant reinforcement this year.
Last year, hired COO from Northvolt, having a very good experience on scaling up to giga scale, and CTO from Topsoe, having very good experience on hydrogen technologies earlier. That was my short presentation. I hope to get a lot of questions afterwards. Thank you.
Great. Thanks. The last presentation in this session is all about cleaning up natural gas into hydrogen. To take us through that, Tim Davies, who's the CEO of HiiROC.
Can't believe you put that picture on the screen. Trading standards. That was only 23 years ago. We're a bit different, right? Get ready. It's not green. It's different. It's better. To talk you through who we are and what we do, we're a transformational new way of making affordable clean hydrogen, which is a hell of a mouthful, but hopefully in nine and a half minutes time you'll believe me. We're four years old, about 100 engineers, a couple of hangers on that do commercial stuff, based in the U.K. and in Bulgaria. We do a thing called Thermal Plasma Electrolysis. I'll explain what that means, it's basically electrolysis but of hydrocarbons. We decarbonize hydrocarbons. We produce five times as much hydrogen per kilowatt than water electrolysis.
We are as cheap as steam methane reforming, but don't make any CO2. Additionally, which if we get time we can discuss in questions, we can mitigate flare gas, so avoid CO2 emissions. If you give us biomethane, we can create negative CO2 hydrogen. Golden hydrogen. We actually made some this week in the lab up in Hull and it didn't come out golden it just looked like all the other hydrogen but there you go. In terms of where we're at as a business, we've got live pilots, I'll talk those through in a second, but we got GBP 30 million of funding which was enough to get us to commercialization. We didn't wanna raise too much. You don't need to. There's a bit of a bubble going on.
We wanted to raise the right amount for us to deliver what we will deliver on. The people on the right-hand side are strategic investors predominantly. That's because they need our hydrogen. They want to invest in us and get it. We only do clients, only do projects where there's rollout. We don't make hydrogen for the sake of it. We make it for a client that wants it and wants a lot of it. You know, if we just delivered on all of those guys, Centrica as an example, on all the hydrogen they want, we'd be making GBP billions of revenue in a few years' time. There's a load of other people that I'll talk through we're also working for. Right. Hopefully we'll have a little bit of debate about this market size, $2.5 trillion mentioned before by 2050.
Good challenge in terms of whether we'll actually get there in the near term. Bloomberg think it's $11 trillion by 2050. My challenge and thesis on it though is we need a way to make the hydrogen to enable the hydrogen economy. Steam methane reforming clearly produces a lot of CO2. Water electrolysis requires a lot of energy. You need to be in clever places like Norway to be able to get that much renewable energy. What we say is, "Let's take a hydrocarbon, a really good fuel, strip off the carbon, store it as solid carbon and hey presto you've got affordable hydrogen." That's all we do. It's a new process. It's electrolysis. We use a really cool stuff called thermal plasma. 10 minutes, we'll never get anywhere near that.
It's a very simple process and it enables the hydrogen economy because you can use existing infrastructure. You can use all the existing pipelines, the natural gas that's there and then flip it into hydrogen where you actually need it, not all the question marks about distribution and everything else. Right. The process, it looks scary but the cartoon that one of my co-founders produced basically says you take methane's an example, any hydrocarbon will do. We'll take biomethane, flare gas, propane, even liquid fuels. We take diesel, end-of-life diesel and can convert that. We basically put it through a strong electric field and it produces carbon and hydrogen, but because it's really, really cool physics, you basically produce carbon in a way that you can solidify it very quickly as solid carbon with no CO2.
That solid carbon I'll come back to is a thing called carbon black and it's pretty valuable but the actual process chemistry-wise is really simple, physics-wise incredibly complicated and patented it to within an inch of its life. Our plasma is pretty damn cool plasma, albeit it's quite hot. Therefore we have a huge amount of protection behind it. We're the only people in the world that can do this process. What does that mean? It's world-leading technology. It's economical. It's as cheap as SMR, far cheaper than water electrolysis. It's efficient. We'll produce the hydrogen where it's needed so get round that storage, transport, pressurization, shindig we'll make it where you need it. Versatile, we are doing trials across all sectors of hydrogen use, industrial decarbonization, transport, blending the full gamut. We'll talk through some client examples.
Scalable, we go small so our basic unit produces 100 kilos a day to prove it works. The largest units we're talking about are 20, 30 thousand times as big as that. Plasma works really well to scale by having a modular kit that you can expand out, so when the wind blows a lot and you're using wind energy you can produce a lot of hydrogen, when the wind blows less you take less. In terms of clean and I will come back to carbon black, the beauty of this is it's also a clean by-product. If you remember we split methane CH4 into carbon and hydrogen. The carbon comes out as carbon black. It's the, it's the clever product that goes into tires that makes them rubbery bizarrely enough.
That's currently made if you look on the right-hand side, by a process called the oil furnace process that produces CO2 and a load of other pollution. Our process does none of that, we make green carbon black if that makes sense. We can replace for Pirelli for example one of the people we're talking to we can replace their nasty process with a much cleaner process which is a by-product of ours so thereby we can generate revenue out of something which otherwise is not wanted obviously we're producing hydrogen. The solid carbon black is used in a lot of places already. We're also researching with Cambridge University, Hull University, Cemex, Jaguar Land Rover and a bunch of others new use cases for that carbon black.
You can do some really clever things with it around soil remediation, filters and in construction. Cemex, for example, cement producer, are looking to insert it into cement to strengthen the cement, use less cement and very low weight. The other thing that's really interesting is where you can get a good source of biomethane that I was talking about before. Not only do you produce solid carbon but when you do the carbon accounting of where that biomethane came from i.e., CO2 from the air runs through a plant pretty damn good photovoltaic cell and then gets turned into biomethane. We then take that biomethane, split that into carbon and hydrogen. The carbon here is therefore sequestering the CO2 that was in the air.
It's a cool new process as I said earlier we did it in the lab for the first time this week. We think that could be a huge addition to what we're actually doing on top of the hydrogen production. What I'm saying is we've got an amazing new process. Is it true? Is it made up? I'm hoping a lot of you are skeptical. Last year we entered KPMG competition, global competition and they believed that we were right. We won that out of I think 1,250 people. The FT decided we were probably telling the truth. The government I was gonna say BEIS but it's not called BEIS anymore obviously it's fragmented but they've given us money behind projects because they believe in what we're doing.
The Guardian headline in the middle there, it's just one example from Centrica, we're the first hydrogen injection into power generation at Brigg, which is just south of the Humber. Finally, which we're very excited about, back in November last year at COP27, we were there with EGAS, who are the state-owned oil and gas company. We are working with them on a flare mitigation project. If you imagine an oil field, you've got a massive flare going off, big flames, that's because you can't use the gas that effectively. What we do is we take that gas and instead of it burning to go to CO2, we flip it into hydrogen and solid carbon. That solid carbon can go into the ground to improve the soil. The hydrogen can be used for a bunch of different use cases.
EGAS had assigned that, so it's the Chairman of EGAS on my right-hand side as you look. We had the ambassador, various ministers there as well. It was quite a big part of what they were actually doing. If we could roll that out across the whole of Egypt, it would have a significant impact of a few % on the carbon footprint of the country. Now, to finish up, what I wanted to do is try and pull it together and explain some of the clients that we're doing. If you remember back at the start, I explained we only produce hydrogen for clients. We don't produce it and then try and find people that want it. The list across the bottom is some of, we couldn't get all the logos on, the people we are working with at the moment on projects.
The demonstrator was live last year. The pilots are going out this year. We're piloting, not rolling out, because we wanna practice, get it right, make mistakes, 'cause let's face it, we're engineers, therefore we make a lot of mistakes, and then rolling out next year. It's going across all the sectors of hydrogen use. Transport is an obvious one. Hyundai, one of our investors, are heavily involved with that project. Decarbonizing industry, cement is one of the worst industries. Cemex are basically saying, "How do we work with you on those pieces?" Energy generation and storage. The Brick project is in effect a peak shaving model that we can provide a much better solution for than they're doing at the moment. Interesting stuff, as I said. That's hydrogen on either end.
Abating emissions, we can take the flare gas we talked about, but also waste gases. Meggitt is on that list. They make a huge amount of aviation brakes. That has a by-product which is a really nasty hydrocarbon mix. We can take that. Instead of that getting burnt and making CO2, we take it, convert it into hydrogen, store the carbon, and therefore they've got a valuable by-product from a waste product. In terms of GBP per kilo, the hydrogen we produce from that process, bearing in mind we're dealing with Meggitt's problem, is negative cost. It's minus GBP 2 per kilo. The spectrum of where we can go to enable the hydrogen economy is huge if you're clever about your feed sources.
Finally, over on the right-hand side, which personally to me is one of the most exciting things, is the CO2 reduction. We can take biomethane where we can work with the right partners and EPI are one of those biomethane providers and one of our investors to produce biomethane to allow us to then turn that into hydrogen, sequester the carbon and net end to end we have reduced atmospheric CO2. That's HiiROC. Thanks very much.
Great. Thanks, Tim. To take you through the Q&A, very pleased to welcome Caroline Cook, who's head of climate at Baillie Gifford. Caroline, over to you.
Thanks very much, JJ. Yep, that's working. Thanks very much for having me today. It's been great to follow the journey of the hydrogen economy through HydrogenOne over the course of the last few years. Just to be clear from a compliance perspective, Baillie Gifford isn't an investor in HydrogenOne. It's out of scope for us, but we are fascinated by the hydrogen economy and the growth of renewables. Maybe I'll use the chair's privilege to maybe ask the first question of all the presenters. You're all in different stages really of the scale-up journey. I just wonder from a technical perspective, what your biggest frustration has been as you've gone through that, maybe starting with Sunfire furthest along.
What makes you perhaps the most optimistic now as we move into 2023, 2024, that these scale-ups can actually start to really get going?
Happy to take this question for the first being first here. I think for us, what has been a challenge, was that we needed to figure out a way how to put capital into work to actually ramp up our production capacities for alkaline. For SOEC, that's at the moment not as relevant because we do not have any commercial fraction with this product yet. I think what's very...
it's a very capital intensive business and to be a scale-up that has no conglomerate behind, and we have not a big balance sheet, I think that's a challenge for us and our shareholders that this business is so capital intensive and that we need to finance the ramp up of production capacities in a different way than folks at the larger companies do that. I think that's one big challenge. Then also there's one challenge, also referring to the point with the balance sheet, right? When we are successful on the commercial side, our customers actually, market standard is that you need to provide guarantees and being a company, again, small scale up, growing scale up, there are certain things that are on the working capital side challenging for us.
Thanks.
I guess the challenges are pretty similar also for Elcogen and although we are not delivering full systems to projects, but the core technology for our system integrators. The challenge is the same that how can we really meet the customer demand, which is growing so fast, and the need for a ramp up is huge. Of course, we have to finance all these, all these capacity expansions, and that's, I guess, the largest challenge today we have. Good stuff. I'll give two answers if I may. First answer, 'cause I'm a geek, is some of the bits that we need. We need chips, lots of chips, and it's really annoying when we can't get them because everybody else in the world wants them.
The thing we have noticed increasingly though is when we run out of other things, and we do every now and again run out of Swagelok, is we get on the phone to Richard, and Richard finds that NanoSUN have some spare Swagelok. There are benefits of being in a portfolio to address mygeekiness. The second answer and probably slightly more serious answer is very similar to Enn's, and that's actually Robin, our CFO, who's in the audience today's answer, which is: How the hell do you do everything that you're being asked to do? We get so many requests coming in. I mean, 1 week after a presentation we gave back in November, it was 50 requests for units that week. I mean, everywhere around the world, China, India and everything else. You can't do it.
Technical challenges, enough good engineers that can deliver the projects. It's not about the technology itself.
Exactly. Technology is there. It is pretty mature for the current stage. Ability to deliver to customers, this is a problem. Really to engage capital investments into this scaling up is a challenge.
That's great. Thanks very much. I could keep this session to myself, but I must open it up. Questions from the floor. One there in the back, that corner.
Thanks. Maybe, a question for Tim, but if anyone else wants to, also chime in. Is there an opportunity and what is it in the sort of food sector, food transformation piece in terms of your business and what hydrogen can do? You know, I'm thinking of methane, but obviously there's other greenhouse gases and, you know, have you looked at that, in terms of what role, hydrogen can play in transformation of the food sector?
Brilliant question. We look at it in a series of different ways, and we try and prioritize what we're going through. A lot of the work we're doing at the moment around flare gas actually says you produce a large amount of carbon in a place that needs better quality soil. Just digging it into the soil and the water that you'll end up as a byproduct if you use the hydrogen becomes actually quite a good way of greening the desert. The use cases go so much further. You've got a facility, we're looking, ironically a few years back, at a pig farm where there's lots of effluent going out into the rivers causing eutrophication. You can use our carbon black as a filter to prevent that going through.
Miraculously, once you've used it as a filter, you then get a slow release fertilizer as a result. It's the rush through of, you know, nutrients and fertilizers going through that you can then capture and bring back. The most bizarre one as well, which is important to me because I like steak, is the beef industry. If you feed carbon black, if it's edible grade, to cows, they grow quicker and they produce less methane along the way. Ironically, our carbon, which is zero CO2, actually prevents cow burps and farts.
Thought it was all in seaweed, actually. It's in tires. Other questions? Yep. Front, front here. Just in the gray jumper.
Sorry. Ken Rock from Goodbody again. Benedict, your CEO, Nils, had a blog post out the other day basically urging governments and the EU generally to get moving. What, it's a question to all of the panelists, what could Europe in particular perhaps do? There's been lots of discussion about the kind of competition from America via the IRA project. You know, what particular measures would get things moving faster? Is it about permitting? Is it about OpEx subsidies or CapEx? What, you know, grid or renewables? What are the bottlenecks that government needs to address, you know, to help the business expand more quickly? Thanks.
Thanks. Thanks for this question. Can you hear me? Actually, very. Thanks for the question. I'm happy to take this. When we think about regulation and public support, and we think about first definition of green hydrogen, and this definition of green hydrogen, I think there was tremendous progress that we made. I think the Delegated act was negotiated since 2018, and now just recently became clear in Europe what actually green hydrogen means. That's a big plus for us, and we are confident this will help customers of ours to actually FID because this is something that was missing, right? It was clear demand is high. On the customer side, we've seen not as many projects actually delivering FIDs.
This was kind of frustrating also maybe linking to the first question here in the Q&A for us because our customers couldn't actually order equipment. The first stage definition of green hydrogen is tremendously helpful for us. It is now, it seems to be more clear in Europe. The second part is incentives for customers that we need to make sure that companies that use the technologies actually have the incentives, the financial incentives to make investments, right? I think Europe, we think about quotas and there's also this RED III actually under negotiation, and we are very positive that this will help the European economic center to be competitive against U.S., right?
Because Inflation Reduction Act, I think, was a very pragmatic move in terms of making actual business cases in North America. I think in the European Union, we tended to be a little bit slow because we needed to define green hydrogen first, and we went through all the stages. At the same time, the US, they were observing the market and observing what the EU was doing. Very quickly, they acted and actually provided a real business case to companies that want to engage in hydrogen projects.
Yeah, I would like to add again the same, capacity increase is critical. We need more equipment and faster. That will drive cost down eventually. How Europe can be in competition with U.S. and Asia, where such, let's say investments and subsidies are made for production scale-up. That's, I guess, crucial also for Europe not to be in a similar situation what happened with photovoltaics. The Chinese made it. Most probably we don't want that hydrogen and then fuel cell technologies will have the same fate.
Thanks. I'll just read out 1 question from the guys watching online as well. I think it goes to this issue about partnerships into the downstream. Obviously, as we've talked about already in the questions, there's a lack of capacity in terms of manufacturing, huge amount of potential demand downstream of you. What do you look for in a good downstream partner when there are so many potential, you know, as you said, incoming, requests? Tim, maybe start.
I'll take that. Scale, right? We want people that are gonna be huge. Each of our clients we've got at the moment would be hundreds of millions GBP if not billions GBP of rollout. I mean, they're only global multinationals. We do try and explore some of the other newer areas. We're skeptical about some sectors, but we'll work with that sector to see if we can make it work and see if we can learn about it. Ultimately it's ruthless prioritization because there's too much to do. The beauty of what we're trying to do, right, is it's a committed client. We will go to their site, we will put a unit on site and produce hydrogen for them, so therefore we know that they will take it.
Either of you want to follow up with that in terms of maybe specific sectors where you're seeing that scale, that commitment come through more clearly?
Sure. Yeah. I think for us, we also focus on larger corporates on the customer side. I think that's also due to limited resources that you have at the scale-up. You need to focus, and you also need to invest in partnerships where you think there's also a good possibility there will be follow-up business in the later wave of hydrogen projects, so to say, when we go to 100 megawatt or 200 megawatt projects. We like to partner with companies that actually have a hydrogen strategy. Also, and in this context, want to move from the multi-megawatt projects, I'm referring to 10 megawatt, 20 megawatt, 50 megawatt projects to larger projects.
I think this is from us a very pragmatic approach because it's just saving resources. It's just, the companies, if they know you can deliver, you have a good likelihood that they will come back.
Thanks. Time for one more question from the floor. In the front here. Yes.
Hi, this is Monica Tepes from, Stockbroker finnCap. I'm taking the perspective of an investor in HydrogenOne. You say, you know, "Give me your 100 pence at IPO, and I'll give you 10%-15% return." I'm just trying to get my head round, you know, I listened to your story about, you know, being also a fund investor, generalist investor. You know, I don't understand all the nuances and the detail, but I'm trying to get a sense of the business model and, you know, you need gross capital and there's a life cycle. I'm just trying to get an idea. There's two things here. When do you get to a stage where you're profitable run rate, you no longer need external capital? There's do you need external capital? How much?
When? What happens if you don't get it? I guess that's a question for the fund as well. What if you can't follow on your investments? Just simplistically, I'm trying to understand because I know that you're growing and expand, but the question is profit, right? To have to deliver it, then you need to make a profit or you need to sell on to somebody who's gonna make a profit, you know. I guess you're not quite technology companies, which can be unprofitable for 20 years, but they still, you know, worth billions. Just kind of try to explain it sort of in a, if possible, simplistically for somebody who's a generalist investor. They just need kind of like a back on the envelope, "This is how I'm gonna deliver your return.
It's a very-
I hope that makes sense.
It's a very good question for somebody that claims not to ask good questions. I completely agree with your concern, right? For me and my co-founders, it's not our first rodeo, right? We tried startups before. Some have worked, some haven't. We have raised enough capital to get to commercialization and profitability. We didn't wanna be in a situation where we needed to go again, and we are on track with that process. The slightly easier thing for us is we are low CapEx. It doesn't cost a lot to make our kit. Our IP is protected in the torches. Rollout for us isn't a massive capital ask. Most of our partners we're working with are more than happy to fund the rollout themselves, but it's not huge, right? It's, it's low CapEx, low OpEx.
I guess same here because I talked about this 200 megawatt factory. It will be profitable standalone also. Of course, for further expansions we need the one factory will not feed the whole growth. There are several scenarios also because we work with our customers, we grow with customers. There are also licensing models included, especially on, let's say, stack assembly with our system integrator partner and so on. Which makes actually it less capital.
or intensive as you might think. That's why I guess it's not a problem to have profitability at quite low capacity already. It's not an issue here.
It's interesting though, I mean, capital to accelerate. Like if we're gonna enable the hydrogen economy, we need to all go quickly. Capital to accelerate is an interesting debate, and when it's right, when isn't it right, when the hydrogen bubble bursts and we get back to some more normality, which is kind of a little bit going on at the moment, that's gonna be fascinating as it plays out. We as a company, we've made ourselves immune to that by raising enough that we don't need to. It will be an interesting challenge as we go through. For example, our business, we expand to the U.S., you know, maybe we raise some more capital to drive that faster. It's a good problem to have.
Okay. Great. Thank you.
Can I just add to that because I think there was a slight question to the fund as well. EBITDA is very important if the exit is going to be an IPO. It's less important if it's gonna be a trade sale. Quite a lot of the exits for these businesses will be strategic acquisitions, where market share and technology are as important. We are seasoned investors, and so EBITDA is a very important thing for us in seeking out these good businesses.
Sorry, if I can just quickly question. From all your invested companies, how many are profitable?
They're all revenue generating, but like all listed, margin companies, probably we're two or three years away from profitability.
Okay. Cool. Thank you.
That's great. We'll have to wrap it up there 'cause we're moving straight into the next session with Richard. Please join me in thanking our speakers very much indeed.
Thank you.
All right. Great. For the last session, we're gonna get into hydrogen applications. This is about portable power. This is about transport on the ground and in the skies. The first presentation here is from Cranfield Aerospace with Richard Moody, who's the Chief Investment Officer of Cranfield Aerospace. Richard.
Great. Good afternoon, everybody, and thanks again to HydrogenOne for inviting Cranfield to present. We're very excited about this opportunity. The first thing to say though is Cranfield is not a hydrogen company. We take hydrogen application and apply it to what we do. We're an aerospace engineering solutions provider, and I'll explain to you exactly what that means. Let's just have a bit of quick audience participation. How many people in this room have taken a flight in the last three months? Okay. Just bear that in mind. It's over half of people who can't see. It's probably about three quarters maybe. Right, you all created a carbon footprint, okay? We know that aviation and the transport industry is one of the hardest to abate industries in terms of sort of carbon emissions. How can Cranfield help solve this issue?
First of all, Cranfield is a company that was born out of the university, a technologically led university. Cranfield University has a pedigree in high tech research and technology. It has done a lot of work with the major OEMs, Boeing, Airbus. We've done conversion work for the UK government. The weather forecast that you get, the flying weather laboratories, Cranfield designed and modified the aircraft to collect that data. We have a pedigree and a technology in terms of designing and applying technology to aircraft applications. So what do we do at Cranfield? Number 1, as I said, it's an engineering integration company. Out of the back of that technology, we also have an MRO business, which is an aircraft maintenance business.
Thirdly, because of the tech and the IP that we developed, we also got into sort of flight simulators, and that flight simulation technology is now developed into Formula One simulators. We actually have three business lines, but by far and away, the most application in terms of our head count is developing hydrogen technology. It wasn't something we just turned up one night and said, "Hey, we're gonna be a hydrogen aviation company." We did meticulous research into the various value chains across aviation decarbonization. We looked at battery, we looked at eVTOL, and we landed on hydrogen because we believe hydrogen has the greatest application in a decarbonization agenda. I talked a little bit about being at Cranfield, and we obviously are located at the business park at the university, so we can use university technology, university resources.
There's an airport there, flight testing, et cetera. Finally, we don't go on this journey without, you know, our shareholders and capital, and obviously HydrogenOne have sort of seen the potential in us. We also have Safran, which is almost everybody in the room I'm sure has flown on an aircraft powered by a CFM engine. Safran built that, so they believe in this. We have some other investors there, including SDF, which is a sovereign wealth fund, Motus, and of course the university. This is what we're trying to address. 2.5% of global emissions come from the aviation industry. If we do nothing, that gets to 22% in 2050. Just to put it in perspective, 4.5 billion passengers flew in 2019.
That's gonna be GBP 10 billion in 2050. We cannot grow the aviation industry without doing something about it. This journey is not just on hydrogen, and I think this is the right-hand side of the slide. We have to collectively as an industry look at different types of technology. It's not just hydrogen. It's synthetic aviation fuels, green aviation fuels. It's batteries, it's fleet renewal, new technology, and also even sort of airspace sort of design. I mean, how many times have you guys circled around Heathrow for 40 minutes? I mean, think of your carbon footprint doing that. It's a combination of all of these things, and one of the things you'll hear me say time and time again is that none of these is a panacea for solving the problem. We need everybody's help to try to do this.
What is Cranfield doing about it? It sounds very simple what I'm going to say, but it really isn't. We are going to say that actually the carbon footprint is going to be solved with the smallest aircraft first. We're gonna develop the technology, we're gonna develop the IP and the tech, and we're gonna scale it. I mean, hydrogen aircraft will not fly between London and Singapore in the next 20 years, right? Hydrogen aircraft will fly between London and Edinburgh in the next 20 years. Hopefully it will. That's what we're trying to solve. We're trying to solve the problem at the root, and then we're gonna try and scale. We have a 4-phase development. Phase I and phase II, let's take existing infrastructure in terms of aircraft fuselage, apply hydrogen fuel cell technology.
Phase three and four is then to scale out into sort of new design aircraft. That is where the optimization is. That's where we get to 50, 60, 70, 100 seats. I think that that probably is going to be where the sort of the optimum sort of range is going to be. It's gonna sort of take time. I think the most important thing here, which people forget, is that aviation is highly regulated. Whatever we do needs to be certified, and it needs to be certified not only in the U.K. with the CAA. EASA, across Europe needs to certify it. The FAA in the U.S. needs to certify it. Transport Canada goes on and on and on. We know that we know what the problem is.
We have a very clear solution of how it's going to happen. What the challenge is for us is to prove the technology and the capability of hydrogen flight and scale. This is what it's about. It's not a high-tech aircraft in terms of like, you know, you would have seen some investor presentations. I think that sort of loses the point. The point is that we want to make hydrogen flight a reality. What we're going to take is a Britten-Norman aircraft, which I don't know how many people have flown a Britten-Norman aircraft. It's a 9-seat aircraft, so if you've flown, you know, in the Isles of Scilly, or if you've flown to the Aran Islands in Ireland, it's a great aircraft, short takeoff and landing aircraft.
What we're trying to do is fundamentally change the power unit and the propulsion to hydrogen technology so that it still flies. Of course, with any aircraft, you have challenges of weight, you have challenges of mass, you have challenges of power output. All of these things need to be addressed. You can see that we're dealing with different partners to help us with different things so that there'll be a new propeller on the plane. There'll be a new sort of electric motor on the plane. There'll be a new thermal management. We have to integrate all of this, and we still have to make the aircraft fly. Making the aircraft fly is not enough. We have to get the aircraft certified. I think that's a really important point.
You might hear people talk about hydrogen flight, but you're not there, you're not over the finishing line until you're certified. Finally, I think that this is a really important slide. We're part of a broader ecosystem. I think some of our, the previous portfolio companies talked about partnership and talked about the ecosystem. We realize that we can't do this. Aviation, you know, it's a massive CapEx industry, but you need to worry about sort of airport infrastructure. You need to worry about regulation. You need to worry about government. You need to worry about, you know, where there's capital coming from. Our approach to this is collaborative. We're working as part of an ecosystem to try to develop the solution for decarbonized aviation.
I think that actually partnering and spending more time with folks like this, plus other portfolio companies, will hopefully help us achieve that. I'm happy to take any questions later on. Thank you very much.
Great. Thanks, Richard. The last company presentation today, very pleased to welcome Tom Mason, who's the CFO of Bramble Energy, who I'm sure Alex will explain are a leader in low-cost fuel cell, and taking that into mobility and portable power.
Thank you. Hello, and thank you. As JJ says, CFO of Bramble Energy. I'm also acutely aware that I'm the last thing between all of you and lunch, so I will keep this pretty brief. Who are we? I think actually before I say who we are, I should say why we exist. I looked earlier and actually found out that fuel cells, hydrogen fuel cells were first invented over 200 years ago, or almost 200 years ago. Really, it's an industry that's been crying out for a revolution and for a disruptor. That's what we are. At our heart, we're a disruptive fuel cell company in an industry crying out for a revolution.
Founded 7 years ago from research labs of UCL and Imperial. Now operating from 40,000 sq ft of a world-class hydrogen innovation center. Team of over 80 and growing all the time, lots and lots of PhDs and engineers in fuel cells in the team. We've raised GBP 40 million to date with Hydrogen One leading the last round last February. The business is protected by significant patent and internal know-how. What are our advantages then? Firstly, creating fuel cells from PCBs instead of the heavy metals or graphite that our competitors use give us huge advantages over our competitors. We can firstly, we can outsource to the global supply chain rather than having to build a factory for each new and fuel cell that's required.
We've got global partners in PCB industry now and significant deep relationships that allow us to deliver these fuel cells globally. The advantages of using PCB rather than heavy metal in a fuel cell. Firstly, low cost. It's far cheaper than our competition. Scalable. This modular approach can be scaled up or down to right down from a few dozen watts right up to multi kilowatts. Rapid delivery. If you went to one of the big fuel cell manufacturers today and said, "We'd quite like a fuel cell that looks like this," they'll say, "Great, we just need GBP 30 million. Give us two years and we'll start churning them out." We have no such requirements. We can use the existing PCB industry.
We don't need to build a factory. We don't need upfront CapEx, and we can start delivering in weeks, not months or years. Customizable. Built, as I say, to any form factor. It's digitally tooled rather than heavy metals, so can be scaled and adapted to exist in architecture. Also global. Can be fulfilled globally by any pre-existing PCB industry, which is significant and developed. Now, clearly key focus of our fuel cells is in the mobility space. As you'll know, mobility can mean everything from passenger vehicles right up to the likes of the work that Primefield are doing. We see that fuel cells can have a part to play in all aspects of that.
There are some exciting demonstrations we're working on right now. For example, the van you can see there is powered by a Bramble fuel cell. Beyond that, we're looking at generators as well and further integration into applications such as marine. Actually Bramble, whilst fuel cells dominate the business currently, we're more than that. We're a platform technology. We have, for example, sensors which are built from the same core tech, built from PCBs, and detect hydrogen, low cost and ready to commercialize. We're developing the same approach to modular electrolyzers, and have demonstrated that in the lab at multi-kilowatt level already.
A bit further down the line, but some potential here is in redox flow batteries and using again that core PCB approach to demonstrate that. What's next? What does 2023 look like for us? We're scaling up our technology, and then that will be tested and scaled to 100 kilowatts during the year. We're aiming to achieve volumetric and gravimetric energy densities which in line with the best in the market. Produce some real world demonstrations within marine, light commercial vehicles and generators. I think this is really a key one, demonstrate the long-term pathway to GBP 100 per kilowatt for a fuel cell stack, almost the holy grail for the market. That's me. Thank you.
Thanks very much. Please have a seat, Alex, and let's take some questions just to close out the session. I'm gonna start off by just taking a question that's come online. This is directed to you, Richard. When do you envisage to have an operational hydrogen fueled aircraft?
Can you hear me okay? Our current plans are to be certified by the back end of 2025 and to be entering service in terms of sort of commercial use in Q1 2026.
Okay. Thank you. Right. Questions from the audience. Any? Question over there.
Thanks very much. It's James Burgess with Platts . Question for Alex. I wonder if you could say a bit more about the technology and how it works for those of us not so familiar with the process versus some of the other technologies that we've heard about today. Thank you.
Well, the beauty of it is that it works like any other fuel cell effectively. It is just the fact that rather than being, say, built from graphite, it's built from PCB laminate materials layered up. So in essence, it works in a similar way to any other fuel cell. I think the one hurdle that the team had to overcome in doing that, or certainly the largest hurdle, was actually around how to stop the degradation of the fuel cell. That's where one of our secret sources internally is creation of a carbon ink, which stops that. But in essence, it works in line the same as any other fuel cell.
Yeah. Any more questions? Oh, just one down here at the front.
Thanks. Ivan Serg with LBBW. Question for Richard, Chris. Question for Alex. Question for Richard, why fuel cells rather than batteries? And for Alex, Yeah, what hurdles do you have to reach to persuade, to actually land orders, life cycle, performance degradation, what, where do you have to get to?
I mentioned earlier on that actually the decarbonization agenda was a combination of a whole bunch of different new technologies. Cranfield University did do extensive research into batteries. It looked at SAF and so on. The reality is that there is battery technology out there, and there are, you know, manufacturers looking at that. Those of you who may or may not be familiar, there's a big market called the eVTOL market that's fact, and you can sort of see what the results of that are. You know, that's a 4-seat, 5-seat, urban inter-urban, intercity sort of like route using batteries.
Battery technology is, well, happened in parallel, but I think hydrogen ultimately has the performance and the range and better sort of energy density for better performance. Ultimately, we think that we're talking about mass transportation of people, and we think that hydrogen will be able to provide that in a more efficient way than battery.
Cool. Thank you.
Just to your point as to hurdles we're facing commercially. It's yeah, I think sometimes there's. Unlike if you're trying to sell batteries into, let's say, the automotive industry, it's well understood now. Sometimes there's a kinda educational piece, and that means you're starting from a bit further back. Really from first engagement to feasibility study, to prototyping, there's. You're bringing customers on a journey along that, along that path as well.
Okay. Yeah. Question there.
Thank you. Johan Brode from Liberum Capital again. Just for Richard, quickly on other schemes in the process. Airbus had a hydrogen plane that they project that they scrapped. Why? What was the hurdles that they faced that you think you would be able to overcome? Then on Alex, just quickly on the capacities that you currently have that are capable of achieving with your fuel cells and where you think that can go over the next five years.
In terms of other OEMs, we were actually in the initial sort of like decarbonization consortium with Airbus. They pivoted. They do have a hydrogen program incidentally. We sort of see, I think my last slide sort of said it's a collaboration, right? We can't do it without it. Frankly, we collaborate with other OEMs. We talk to, you know, we talk to them all. The reality is that, you know, I used to work in a large investment bank, and I now work in a small company. I see how decisions are made. I see how things work. In my limited time at Cranfield, I've only been there, you know, 6 months or so, I've had some interactions with some of the OEMs, and I financed some of these OEMs in the past.
I think the portfolio companies that have presented today will realize that because they're smaller, because they're private, they just have a different way to do things, right? If you wanna make a decision to do something. We had a problem two weeks ago, a mass issue, okay. It was quite a significant mass issue. We got everybody into a room, okay. The CTO, the CEO, the CFO. I sat there, but I just didn't say anything 'cause I'm not an engineer. Anyway, the point of the matter was that that was resolved. I don't know how long that would've taken in a large OEM.
Okay. Thank you. Any more?
There was.
Oh, this is.
There was a question on capacity.
He was just answering that question on the capacity.
Oh, yes. Yeah.
Sorry.
Well, I mean, really the beauty, the beauty of Bramble is that we don't have a factory. We will not need a factory. Whereas again, competition would have to either go to the markets or go through continuous fundraising every time a large order comes in and to be able to build fuel cells for different customers as we are seeing.
The beauty of Bramble is actually we leverage a pre-existing supply chain, the PCB industry, which is global and significant, and effectively they produce the fuel cells on our behalf. Really our capacity is limitless in that sense.
Firstly, I just wanted to say, my name's Nima from Wells Fargo, I just wanted to say, thank you for hosting the session today. I guess my question is more on the governmental sort of policy regarding energy in the U.K. I went to an event in October actually, where Sir Jim Ratcliffe was talking about, you know, the U.K. and energy policy, et cetera, was very critical of the fact that the U.K. Have had so many different energy ministers with different direction. I've noticed in the last few weeks they've just set up this new net zero minister, et cetera. I'm just wondering from managing the portfolio and being UK-based, how that sort of uncertainty that we've seen from energy policy and new ministers every few months and U-turns, change in direction, how that's been for managing the portfolio.
Yeah. Yeah. It's a, it's a good question. I mean, it's a sort of political question. I think what we wanna draw investors' attention to is the fact that this is a global hydrogen fund. Although some of the businesses are based in the U.K., quite a lot of their sales are outside of the U.K. The project developers you've heard from are in Germany, and in Norway. Ultimately, if there's a problem with the politics in the U.K., we can just invest around it and invest internationally.
What we would refer people back to is Boris Johnson making a commitment that we will have 10 gigawatts worth of hydrogen, some by blue, but mostly by green by 2030, the same as Germany. The government has stated its long-term position. There are factions, there are other, there's politics that I don't think we're qualified to comment on. Really the demand for hydrogen is coming from the consumers who want to buy, for example, a car made from green steel. They want to eat yogurt that is zero carbon yogurt. There is a race on amongst the commercial providers of products to get to zero carbon, and hydrogen plays a big role in that.
Regardless of what government policy is, there's a very, very strong commercial demand for zero carbon products where hydrogen has to be part of that solution. That's what we rely on. Politicians will come and go, but hydrogen and infrastructure will outlast. Thank you. We're just going to close out now. JJ is going to make final comments and then we'd like to invite you for lunch.
Great. Well, thanks to all of the presenters today, and thanks for the great, the great turnout here and obviously on the internet. We've had presentations from 10 private equity positions across our portfolio of material businesses, six countries in aggregate employing over 1,000 staff. From the developer companies, where HydrogenOne now has 10 green hydrogen projects under exclusivity for over 7 gigawatts of capacity, and the first of those projects, in Thierbach, 100 megawatts, in development. Those were presentations from Gen2 Energy, from HH2E, and of course from the Thierbach project. We heard from the storage and distribution sector, manufacturing the equipment for onshore and offshore, storage and distribution of hydrogen. That was NanoSUN and Strohm.
We had some great presentations from the supply chain technology businesses, including leading players in electrolysis, and in fuel cells. In aggregate, those companies were installing over a gigawatt of manufacturing capacity for primarily industrial customers. Those were talks from Sunfire, from HiiROC, and from Elcogen. Then in the last session we heard about the hydrogen applications, innovative technology developers pioneering in emissions-free portable power, road transport and flight, and that was from Bramble Energy and Cranfield Aerospace. Aggregate revenues from all of that portfolio, GBP 30 million in 2022. That was a 110% increase in revenue compared to 2021. There's rapid growth coming through from this portfolio and there's a lot more to come as those companies complete their strategies.
Last one from me and then lunch. Ultimately, what we're all about here is backing the best hydrogen companies and the best hydrogen projects on behalf of our investors through our, we think, rather unique network in this sector. I think you've seen that today. Distinctive positions, growth-orientated, strong management teams, powerful technologies. GBP 106 million deployed and more to come from that with a GBP 500 million pipeline on the table for our investors today, all directed at avoiding greenhouse gas emissions and growing value for our investors. Thank you all for joining. Let's have a round of applause for all the presenters and we're all here for lunch.
Thank you very much for the HydrogenOne team 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 in order that the management team can better understand your views and expectations. This will only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team of HydrogenOne Capital Growth plc, we'd like to thank you for attending today's presentation, and good afternoon to you all