HydrogenOne Capital Growth has signed binding agreements to invest £8.4 million in Strohm Holding.
In the first close of a funding round totaling £11.8 million, HydrogenOne is investing alongside Strohm’s current investors Shell Ventures, Chevron Technology Ventures, and Evonik Venture Capital. In the second close of this funding round, which is anticipated to be at least £5.1m in total in addition and is expected later in 2022, HydrogenOne may also invest up to an additional £1.7m.
With the purchase of Strohm, HydrogenOne will be eligible for a board seat. The offshore wind to hydrogen industry is the focus of the private supply chain company Strohm, which also supports a dependable, quick, and affordable global transition to green energy. The business is creating reliable pipeline solutions so that green hydrogen produced at offshore wind farms can be shipped to land using Strohm’s subsea pipe network.
Strohm is a market leader in the design and production of thermoplastic composite pipes from its base in the Netherlands, not far from Amsterdam. TCP is more affordable than steel pipe and produces around 50% fewer greenhouse gas emissions during manufacturing. TCP can be installed offshore quickly and easily using the same techniques as current array cables because it is a flexible pipe. The technology enables the safe transportation of hydrogen, CO2, ammonia, and water in environments where steel solutions are prone to corrosion and embrittlement.
Strohm expects that this fundraising will allow it to expand the capacity of its Dutch manufacturing facility and carry out its energy transition agenda while continuing to assist clients in achieving net-zero goals with its robust, lightweight, and entirely recyclable pipe solution, which has been shown to reduce the CO2 footprint of pipeline infrastructures by up to 60%.
Offshore green hydrogen projects totaling more than 9 gigawatts (GWs) have been proposed for the North Sea basin, with additional growth potential of multiple GWs, as well as Carbon Capture, Utilization, and Storage (CCUS). All of these projects will require specialized pipeline solutions at scale. To support the growth of this offshore hydrogen and CCUS market, Strohm is in a good position.
Image source: Strohm