SENCO Hydrogen Capital, a private equity firm focusing on investments across the hydrogen and energy-in-transition value chain, has invested €20 million in Dutch manufacturer of innovative pipeline technology Strohm to boost the company’s growth trajectory.
Made shortly after the first closing of SENCO’s Hydrogen Equity Fund, the investment is aimed at supporting Strohm’s growth focused on hydrogen and carbon capture, utilization and storage (CCUS) applications.
The partnership also seeks to reduce carbon footprint in the pipeline infrastructure for conventional energies in order to achieve more sustainable energy supply solutions overall.
“We are currently seeing a large number of growth-oriented companies that are making important contributions to the success of the energy transition. These companies are highly attractive from an investment perspective, largely irrespective of interest rate developments and the macroeconomic framework data. Strohm is a perfect example of this,” said Oliver Kolbe , Managing Partner of SENCO.
SENCO is the lead investor in the capital increase totaling €30 million, in which existing shareholders took part, including Chevron Technology Ventures, Evonik Venture Capital, HydrogenOne Capital, ING Corporate Investments and Shell Ventures.
“With the value-adding and outstanding expertise of the SENCO team in the field of energy transformation investments, we are strengthening Strohm’s position as an innovator and pioneer in the development of TCP ,” said Bernhard Mohr , Chairman of the Supervisory Board of Strohm and Managing Director of EVONIK Venture Capital.
“We look forward to working with SENCO as a shareholder in Strohm to develop innovative solutions to shape a sustainable future and address the challenge of our time.”
Strohm recently completed an extensive six-month hydrogen testing program on its thermoplastic composite pipes (TCP) at Tüv-Süd in Germany, which saw the comprehensive permeation assessment cover a range of pressures and temperatures, using a full-scale TCP equipped with two end-fittings.
According to the Dutch company, the testing demonstrated “highly promising results” and both the TCP itself and the end-fittings exhibited exceptionally low hydrogen permeation values, underscoring the technical suitability of the product for high-pressure hydrogen service.
It is also worth mentioning that in April Strohm secured its largest commercial award for pipe supply in its 16-year history, thanks to a new contract for an oil development off the coast of Guyana with ExxonMobil.