HydrogenOne Capital Growth, dubbed the first LSE-listed investment fund dedicated to clean hydrogen, has agreed to invest £8.4m (EUR 10m) in Strohm, a company manufacturing Thermoplastic Composite Pipes (TCP) for offshore energy applications.
HydrogenOne is investing alongside Strohm’s existing investors Shell Ventures, Chevron Technology Ventures and Evonik Venture Capital, in the first close of a funding round totalling £11.8m (EUR 14m). HydrogenOne may also invest up to a further £1.7m (EUR 2m) in the second close of this funding round, which is anticipated to be at least £5.1m (EUR 6m) in aggregate in addition, expected later in 2022.
Following the investment in Strohm, HydrogenOne will have the right to a board seat.
Strohm, a private supply chain company, is, among other things, focused on the offshore wind-to-hydrogen sector. In this segment of the offshore energy industry, Strohm is developing "safe and dependable" pipeline solutions, where green hydrogen generated at offshore wind turbines can be transported to shore via Strohm’s subsea pipe infrastructure.
According to Strohm, based in the Netherlands, its Thermoplastic Composite Pipe (TCP) is more cost effective than steel pipe and has c.50% less manufacturing greenhouse gas emissions.
Per Strohm, TCP is a flexible pipe, it can be installed offshore easily and quickly, using the same methods as currently used for array cables. The technology can be used to safely transport hydrogen, CO2, ammonia and water, where steel solutions suffer from embrittlement and corrosion.
"This fundraising is expected to enable Strohm to scale up its plant capacity in the Netherlands and deliver on its energy transition agenda as it continues to support clients towards net-zero goals with its durable, lightweight and 100% recyclable pipe solution, proven to reduce the CO2 footprint of pipeline infrastructures by up to 60%," Strohm said.
"Over 9 gigawatts (GWs) of offshore green hydrogen projects have been proposed in the North Sea basin, with further multi-GWs growth potential, alongside Carbon Capture, Utilisation and Storage (CCUS), all of which will require specialist pipeline solutions at scale. Strohm is well positioned to service the development of this offshore hydrogen and CCUS market," the company said.
