Canada Pension Plan Investment Board (CPP Investments) and hydrogen project developer Power2X have entered a long-term investment partnership aimed at advancing Power2X’s role in the global clean energy transition.
According to the companies, the partnership plans to invest an initial €130 million to accelerate the growth of Power2X as a development platform and fund green molecule projects.
Specifically, the investment supports Power2X’s 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.
Under the terms of the agreement, CPP Investments will acquire a majority interest in Power2X.
Bruce Hogg, Managing Director, Head of Sustainable Energies, CPP Investments, said: “The need for industrial decarbonization 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.”
Occo Roelofsen, CEO, Power2X, commented: “In 2020, we founded Power2X to have a lasting impact on the world’s energy transition, by focusing on green and clean molecules… Announcing this partnership with CPP Investments shows how far our team have come in a very short time.”
“We are actively participating in hydrogen projects, such as ErasmoPower2X, a €1 billion solar and hydrogen plant, and MadoquaPower2X, a €1 billion industrial-scale hydrogen and green ammonia project.”
To note, the term “green molecules” refers to the application of green hydrogen and its derivatives, including green ammonia and green methanol, to decarbonize non-power, hard-to-abate industrial activities. According to the companies, these green molecules can act as direct replacements for process feedstocks or transportation and heating fuels.
READ MORE CPP Investments to become sole owner of Ports America Follow Offshore Energy’s Clean Fuel: