JLEN Environmental, an environmental infrastructure investment fund based in Guernsey, has announced its participation alongside a consortium comprising other funds managed by Foresight Group LLP and its development partner HH2E AG. HH2E AG specialises in developing green hydrogen projects aimed at decarbonising industries.
The consortium of investors, including JLEN Environmental, has approved the preliminary investment decision. The initial investment will be used for detailed engineering designs and the procurement of long lead items.
The green hydrogen production site is situated in Lubmin, Germany, as confirmed by JLEN Environmental. During the first phase of 100 megawatts, the facility is capable of producing over 6,000 tonnes or 200,000 megawatt hours of green hydrogen annually. This phase will involve electrolysis and integrated high-capacity battery storage.
JLEN Environmental expects subsequent expansion phases to increase capacity to over one gigawatt, resulting in annual production exceeding 60,000 tonnes of green hydrogen.
HH2E will be responsible for the construction and operation of the Lubmin plant, which will cater to customers and off takers in various sectors, including mobility, as well as large-scale energy and industrial consumers.
The Lubmin location benefits from excellent existing grid infrastructure, including two liquefied natural gas terminals that were constructed in 2022, connecting the town to the country’s pipeline network.
JLEN Environmental anticipates making the final investment decision in the coming months, and construction of the plant is scheduled to commence immediately thereafter.
“We are pleased to be making good progress with our partnership with HH2E, which is poised to become one of the largest producers of green hydrogen in Europe. They have a deep understanding of the sector and they are highly capable of developing attractive opportunities to unlock value for investors,” said JLEN Environmental Chair Ed Warner.
“Hydrogen has an important role to play in decarbonising heavy transport, industry, and other hard-to-abate sectors of the economy. Investing in this sector will remain an important near-term focus for the company as we continue to assess opportunities to recycle capital within the portfolio.”