Hydrogen Future Industries [LON:HFI], a developer of proprietary wind-based green hydrogen production systems, has said it is investing in Tower Green Holdings, a developer of hydrogen production and distribution facilities. Tower Green is establishing multipurpose hydrogen hubs in the southwest of England to provide energy storage and hydrogen as a fuel.
Under the agreement, HFI’s System, which is in development, will be implemented as Tower’s preferred green hydrogen production technology.
HFI’s technology in development is a wind-based hydrogen production system combined with electrolyser technologies which aims to generate hydrogen for under $2 per kilogram. A key element of the System is its proprietary wind turbine, which has been designed with notably distinct features which allow the turbines to be more efficient than current open rotor turbines and could increase the efficiency and ultimately lower the cost of hydrogen production for future partners such as Tower.
Green hydrogen is considered by many experts to be one of the pillars of future clean energy provision for the planet. As a source of power it is clean, flexible and energy efficient. It produces water instead of CO2 and generates its electricity from an electrochemical reaction, much like an electric battery.
- Hurricane Energy: still a buy after Crystal Amber Fund backs off?
- Cooks Coffee: the growing new stars in the coffee chain game
- Samarkand Group is ideally placed to profit from China’s ecommerce boom
Significant increase in energy output
The wind-based HFI System aims to achieve a significant increase in energy output, with an up to 50% reduction in the cost of electricity generated. The technology is still in the prototype stage, with development activities being conducted through a wholly owned subsidiary. The company said it plans to launch a commercial scale unit this year.
“HFI’s System aims to produce affordable green hydrogen and so is well placed to support companies like Tower as they develop downstream infrastructure and partnerships to get hydrogen into vehicles and support the decarbonisation of transport,” said David Ormerod, Executive Director with Hydrogen Future Industries. “Through this agreement, not only are we gaining early investment exposure to the massive growth opportunity in hydrogen refuelling which is analogous to the rollout of EV charging infrastructure over recent years, we are also supporting Tower’s ambition to become a vertically integrated green hydrogen producer and distributor in the UK.”
HFI has made an initial investment of £100,000 in Tower for a 20% equity stake, £50,000 of which has been paid in cash and £50,000 has been settled by the issue of 500,000 new ordinary shares in HFI at a price of 10p per share.
Daniel Maling, Non-executive Director with Hydrogen Future Industries, will join the board of Tower as part of this partnership. In addition, HFI has the right to invest a further £50,000 in Tower upon the latter signing an agreement to collaborate with certain specific project partners for an additional 10% equity stake in Tower.
On 4 January 2023, a partnership was announced between Tower and Element 2 Limited, a UK-based developer of hydrogen refuelling stations and a retailer of hydrogen fuel to fleet operators and other consumers, whereby Tower will provide access to hydrogen for road transport in the southwest of England. The partnership connects Tower’s locally produced green hydrogen with the infrastructure required to supply fuel to hydrogen-powered trucks and haulage vehicles.