German green hydrogen producer HH2E has decided to file for self-administration and pursue a structured corporate restructuring process after the company’s majority shareholder voted against providing financing for HH2E’s first green hydrogen production facility in Lubmin.
Near the coast, in Lubmin near Greifswald, Western Pomerania, HH2E is proposing to build 500 MW of electrolyzers and 2,000 MWh of batteries for the annual production of 60,000 tonnes of green hydrogen by 2030 utilizing the Baltic Sea gas pipelines.
Two months ago, HH2E signed a €45 million contract with Gebrüder Karstens Bauunternehmung for the construction of its flagship green hydrogen plant in Lubmin, expecting to commence the works following the approval of the project under the German Federal Immission Control Act (BImschG) and the final investment decision by HH2E shareholders.
Infrastructure and private equity investment manager Foresight Group became the majority shareholder of HH2E and its subsidiaries, including HH2E Werk Lubmin, through a consolidation process in May 2024.
The German company said it had been in intensive negotiations with Foresight Group over the past few weeks regarding the funding of its flagship green hydrogen production facility.
According to HH2E, the negotiations yielded final agreements which were expected to be concluded in the second week of November.
“However, as of yesterday, Foresight Group reinformed HH2E AG that its Investment Committee had ultimately decided against providing the necessary financing. Consequently, HH2E AG and its subsidiary, HH2E Werk Lubmin GmbH, are legally obligated to initiate insolvency proceedings,” HH2E said in a statement issued on November 8, 2024.
The company further noted that the management was prepared and had taken proactive measures, intending to file for self-administration on November 8 and pursue a structured corporate restructuring process and focus on securing a new investor “aiming to champion HH2E’s vision for establishing an industrial scale platform of green hydrogen production in Germany” .
“We remain committed to maintaining continuity and stability in our operations as we work toward a long-term solution. I am convinced we will soon find a strategic partner who shares our passion for green energy and can support HH2E AG’s vision,” Alexander Voigt , CEO of HH2E, commented.