Canada Pension Plan Investment Board (CPP Investments) and hydrogen project developer Power2X have announced a long-term investment partnership aimed at advancing Power2X鈥檚 role in the global clean energy transition.
Under the terms of the deal, CPP Investments will acquire a majority interest in Power2X.
The partnership plans to invest an initial 鈧�130m to accelerate the growth of Power2X as a development platform and fund green molecule projects.
The investment supports Power2X鈥檚 mission to become a long-term developer, owner, and operator of next-generation energy assets with a focus on green hydrogen and other clean molecules such as green methanol and ammonia. The company has a diverse portfolio of projects that are initially prioritising European demand.
Bruce Hogg, managing director and head of the C$32bn (鈧�22.3bn) sustainable energies business at CPP Investments, said: 鈥淚nvesting in Power2X is fully aligned with our ambition to play a leading role in the energy transition. The need for industrial decarbonisation is increasing rapidly, and green molecules have a vital role to play in meeting these demands, whether to create alternative fuels, hydrogen, or renewable feedstocks such as green ammonia.
鈥漌ith Power2X鈥檚 development capabilities and CPP Investments鈥� flexible capital and sustainable energies expertise, this partnership enables us to invest in next-generation energy assets at an industrial scale with long-term business partners.鈥�
Occo Roelofsen, CEO, Power2X, said: 鈥淚n 2020, we founded Power2X to have a lasting impact on the world鈥檚 energy transition, by focusing on green and clean molecules. Working with CPP Investments will enable us to accelerate our ambition to become a leader in green molecules and, in doing so, continue on our journey as a long-term and serious player in this critical arena of global sustainability.
鈥滱nnouncing this partnership with CPP Investments today shows how far our team have come in a very short time. We are actively participating in hydrogen projects, such as ErasmoPower2X, a 鈧�1bn solar and hydrogen plant, and MadoquaPower2X, a 鈧�1bn industrial-scale hydrogen and green ammonia project.鈥�
The term 鈥榞reen molecules鈥� refers to the application of green hydrogen and its derivatives, including green ammonia and green methanol, to decarbonise non-power, hard-to-abate industrial activities. These green molecules can act as direct replacements for processed feedstocks or transportation and heating fuels.
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