Hydrogen has long-been touted as a potential clean fuel as it only emits water vapour, but it has failed to gain traction, mainly due to its historically high production, transportation and storage costs. The European Union (EU) now looking to promote so-called “green” hydrogen to help reach its global goal of net zero emissions. The sector is also expected to attract hundreds of billions of dollars in investment in the coming decades. The new fund, HydrogenOne Capital, is being launched by JJ Traynor, a former Royal Dutch Shell executive, and Richard Hulf, who has worked at Exxon Mobil and been an energy fund manager at Artemis.
250 million-pound ($315 million) fund is due to be launched by the end of 2020, according to a presentation for investors seen by Reuters. The London-based fund would be the world’s first hydrogen-dedicated investment fund. Majority of the hydrogen available today is dubbed “grey” as it is made from natural gas in a process that creates carbon emissions. Additionally, they mainly used by polluting sectors such oil refining, steel and chemicals. The new fund will prioritize investments in “green” hydrogen, which is produced by electrolysis using renewable energy sources such as wind, solar and hydro, according to the prospectus. However, it will consider investments in grey and “blue” hydrogen – made using gas but capturing and storing carbon emissions – as economies make the transition to cleaner fuels.