Hydrogen Capital Growth Plc reported a significant decline in Net Asset Value (NAV) per share to 41.48p as of June 30, 2025, down from 90.39p at the end of 2024, reflecting a £61.5 million decrease in the value of its private hydrogen assets. Despite this, the ordinary share price saw an increase of 26.8% to 27.45p, narrowing the discount to NAV to 33.8%. The company has appointed RWC Asset Management LLP as its new investment adviser and is recommending a managed realization of its assets to shareholders, with a General Meeting scheduled for December 1, 2025, to approve this strategy. The company’s cash balance stood at £1.6 million as of June 30, 2025, with ongoing operational expenses and a challenging fundraising environment impacting portfolio companies.
Investing in clean hydrogen for a climate-positive impact
Company Overview
Hydrogen Capital Growth Plc (“HGEN”, the “Company”) is the first London-listed fund investing in clean hydrogen for a positive environmental impact.
The Company was launched in 2021 with an investment objective to deliver an attractive level of capital growth by investing, directly or indirectly, in a diversified portfolio of hydrogen and complementary hydrogen focussed assets whilst integrating core ESG principles into its decision making and ownership process. The Company is an Article 9 climate impact fund under the Sustainable Finance Disclosure Regulation.
In July 2025, the Company announced a change of investment adviser to RWC Asset Management LLP (“Redwheel”) and a change of Alternative Investment Fund Manager (“AIFM”) to Global Fund Management Services Limited (“GFM”), along with a recommendation to shareholders to pursue a managed realisation of the Company’s remaining assets (“Managed Realisation”).
Key metrics
At 30 June 2025
At 31 December 2024
% change
Net asset value (“NAV”) per Ordinary Share
41.48p
90.39p
(54.1)
NAV
£53.4m
£116.4m
(54.1)
Ordinary Share price
27.45p
21.65p
26.8
Market capitalisation
£35.4m
£27.9m
26.9
Ordinary Share price discount to NAV1
33.8%
76.0%
Ongoing charges1
2.84%
2.53%
1 These are alternative performance measures
Alternative Performance Measures (“APMs”)
The disclosures above are considered to represent the Company’s APMs. Definitions of these APMs and other performance measures used by the Company, together with how these measures have been calculated, can be found at the end of this report.
Simon Hogan, Chair of the Company said:
“The period under review and beyond has been highly challenging for the Company and its portfolio leading to HGEN’s significantly changed position today. The Board, its advisers and more recently, the new investment adviser have been highly proactive in addressing these challenges and we are intensively engaged in securing the best outcome for our Shareholders which I detail in full in my Chair’s statement below.
The Company has convened a General Meeting on 1 December 2025 to approve the managed wind down policy and the Board unanimously recommends that Shareholders vote in favour of the resolutions to be proposed.”
Chair’s statement
On behalf of the Board, I set out the fourth Interim Report of the Company, covering the six-month period to 30 June 2025 and the Company’s financial position at that date.
The period under review and beyond has seen significant change in both the Company’s own position and the sector in which it invests. Whilst during the first half of 2025, there were reasons to be optimistic with regard to the Company’s portfolio and prospects, it has become an increasingly challenging environment for our portfolio companies and indeed our own position, particularly in relation to the Company’s cash constraints.
It has been the case for some time that the Company has not been in a position to provide additional funding or investment to any of its portfolio companies, and this persisted through the period. Furthermore, the Company’s working capital has become increasingly constrained through general running expenses. The previously announced deal with Cordiant Capital (to acquire the prior investment adviser) was expected to have some potential benefit to the Company through the scale, optionality and support that a larger asset manager can bring. However, as announced in April 2025, that transaction unfortunately did not proceed.
As I stated at the time of the Annual Report and Accounts for the year ended 31 December 2024, the Board had begun looking at a range of options for the Company. The Company subsequently appointed Shore Capital as Financial Adviser and Broker in May 2025 to assist the Board in exploring a number of options. These ranged from the sale of one or more investments to a strategic investor; a similar transaction to that envisaged with Cordiant Capital with another asset manager; other funds (whether public or private) to co-invest with or enter into an alternative transaction with the Company; amongst other ideas.
During this time, the Board was also exploring cost-cutting measures with regard to reducing ongoing running expenses to seek to preserve the Group’s cash which was £1.6m as at 30 June 2025. With the significant majority of the Company’s expenses being the previous investment advisory fee, focus was on seeking to renegotiate that fee to secure a reduction. Unfortunately, the Company’s proposals to reduce the investment advisory fee, which it believed would better reflect the current trends for similar fees in the market and provide more alignment, were not agreed. In addition, from discussions with other asset managers, an alternative was emerging – the potential to replace the investment adviser entirely with an asset manager of larger scale and a more competitive investment advisory fee. The Board has reviewed all service contracts and renegotiations have taken place or are underway resulting in the termination of some contracts and reductions in others. The Board continues to monitor fund expenses closely.
At the same time, Shore Capital together with members of the Board, attended site visits to a number of portfolio companies. Within a few weeks, visits had been made to Bramble, Cranfield and HiiROC without the previous investment adviser present. In addition, I also travelled to Estonia to see Elcogen’s new high volume solid oxide fuel cell and electrolyser plant in Tallinn. What became very apparent from our visits and direct conversations with these investee companies and their management teams, was that whilst potential for these companies remained, they were, in a number of cases, in imminent need of further funding. Whilst processes were ongoing in relation to potential funding rounds or the potential sales of part or all of the businesses, outcomes were looking distinctly uncertain, much more so than had been previously conveyed to us as a Board.
As the preparations for the net asset value (“NAV”) calculation (as at 30 June 2025) progressed, the Board was looking closely at assumptions being used in the valuation process so that these could better reflect ongoing developments in certain portfolio companies’ positions. It was becoming increasingly clear to the Board that there was a divergence of views with the previous investment adviser with regard to the more conservative assumptions we, as a Board, felt were appropriate in the circumstances. In the Board’s view, certain of the assumptions being proposed, whilst permitted by the relevant IPEV guidelines, were too optimistic.
July 2025 also marked the fourth anniversary since the Company’s IPO and the first point at which the Company could serve notice on the previous investment adviser. A review of the existing arrangements uncovered the ability for the Company to terminate that agreement without needing to pay a sum in lieu of notice. This provided the Company a viable window of opportunity to effect change.
Without a reduction in the original investment advisory fee, the Company would have had a cash runway until early in the fourth quarter of 2025. This, together with the challenged valuation process outlined above and the realisation that a sale of an investment or any of the other options were not going to yield imminent results, meant that the change in investment adviser was becoming not only compelling, but necessary. Balancing all of these factors, the Board announced on 30 July 2025, that it had terminated the existing arrangements with its previous Investment Adviser, HydrogenOne Capital LLP and Alternative Investment Fund Manager, FundRock Management Company (Guernsey) Limited, and appointed RWC Asset Management LLP (“Redwheel”) as replacement Investment Adviser and Global Fund Management Services Limited (“GFM”) as replacement AIFM, along with the intention to propose a managed realisation to shareholders. As an established investment management firm with c.US$21 billion under management, experienced in advising two London-listed investment trusts with combined net assets in excess of £1.2 billion, Redwheel brings with it the scale and expertise in both public and private markets.
Following their appointments, Redwheel and GFM commenced work on establishing an independent reassessment of the Company’s NAV as at 30 June 2025 including the Board’s appointment of an independent valuation agent to provide support in assessing the value of the Company’s investments.
The Redwheel team immediately began work meeting investee companies to obtain information and fully understand the circumstances of each. Given the urgent need for funding in certain of these businesses, this also meant joining detailed negotiations in relation to certain portfolio companies with fast-evolving situations. The handover information which the Company requested from the previous investment adviser in early August relating to the Company’s portfolio of investments was unfortunately not forthcoming until early September. Furthermore, the fast evolving situations within investee companies created further material valuation uncertainty, particularly against the last published NAV as at 31 March 2025. It became clear then that the publication of the NAV as at 30 June 2025 would not then be achievable and as a consequence the interim report would also be delayed. It was a combination of these factors which led the Board to announce the temporary suspension to the listing and trading of the Company’s shares on 18 September 2025.
Whilst we are pleased to now be able to apply for the suspension of our shares to be lifted, we are naturally extremely disappointed with the deterioration in NAV which has impacted you, our Shareholders. The market for hydrogen-related technology has weakened significantly over recent months and the lack of funding available to our portfolio companies has clearly demonstrated this. In one case (Bramble), we have seen our co-investors no longer being willing to commit more capital to fund that company and, in another case, a co-investor seeking to re-write historic investments (with new security packages) in order to provide funding on terms extremely punitive to other co-investors, (which was robustly challenged to seek to protect the Company’s interest). More detail on the portfolio companies can be found in the Investment Adviser’s Report.
We have now published the NAV for the period to 30 June 2025, with an independent valuation having been carried out by the independent valuer we engaged (a top tier global investment bank), alongside Redwheel’s investment team, before being reviewed by Redwheel’s Valuation Committee and our new AIFM, GFM, for final approval by the Board.
These valuations recognise increased discount rates when compared to historical valuations. While this is necessary, it is a contributing factor to the decline in NAV. Discount rates used in the valuations are corroborated by relevant market data points and the Board’s third-party expert opinion to reflect the current prospects of the Company’s assets. The weighted average portfolio discount rate in March 2025 was 12.2 per cent. As of June 2025, the weighted average discount rate was 22.9 per cent.
The Company’s NAV as at 30 September 2025 has now also been completed (and published separately) to bring the Company’s valuation up to date. The Company’s 30 June 2025 and 30 September 2025 NAVs do reflect the challenged circumstances some of our portfolio companies have been experiencing. We are pleased that certain of these which had required funding have now secured the capital needed.
As you will be aware, a circular to Shareholders was published on 29 October 2025 (the “Circular”) with notice to convene a general meeting on 1 December 2025 (the “General Meeting”) to seek approval for, inter alia, a change of investment policy to that of a realisation strategy (the “Proposals”). Focus will now be on securing as much value for our shareholders as possible through a managed realisation process if approved by Shareholders.
I must emphasise that the Group’s cash position remains challenged at the time of writing, with cash of £1.1m as at 30 September, which gives working capital until early in 2026. However, we are pursuing options that could unlock funding for the Company, and the Board will update on this as and when appropriate.
As a Board, we are intensively engaged in securing the best outcome for our Shareholders. The Board considers that the Proposals set out in the Circular are in the best interests of Shareholders as a whole. Accordingly, the Board has unanimously recommended that Shareholders vote in favour of the resolutions to be proposed at the General Meeting.
Simon Hogan
Chair
12 November 2025
Investment objective and policy
Proposed change of investment policy
The Company’s current investment objective and policy are set out below, however the Company is proposing to change this to a managed realisation policy as further described in the circular to Shareholders published on 29 October 2025, with notice to convene a general meeting of the Company on 1 December 2025 to seek shareholder approval of such change. The Directors and the Company’s largest Shareholder, Ineos Energy, intend to vote in favour of the relevant resolutions at the General Meeting.
Investment objective
The Company’s investment objective is to deliver an attractive level of capital growth by investing, directly or indirectly, in a diversified portfolio of hydrogen and complementary hydrogen focussed assets whilst integrating core ESG principles into its decision making and ownership process.
Investment policy
The Company will seek to achieve its investment objective through investment in a diversified portfolio of hydrogen and complementary hydrogen focussed assets, with an expected focus in developed markets in Europe, North America, the GCC and Asia Pacific, comprising:
i. assets that produce clean hydrogen;
ii. large scale energy storage assets;
iii. carbon capture, use and storage assets;
iv. hydrogen distribution infrastructure assets;
v. assets involved in hydrogen supply chains, such as electrolysers and fuel cells; and
vi. businesses that utilise hydrogen applications such as transport, power generation, feedstock and heat (together “Hydrogen Assets”).
The Company intends to implement its investment policy through the acquisition of hydrogen and complementary hydrogen focussed assets.
Private Hydrogen Assets
The Company invests in unquoted Hydrogen Assets, which may be operational companies or hydrogen projects (completed or under construction) (“Private Hydrogen Assets”). Investments are expected to be mainly in the form of equity, although investments may be made by way of debt and/or convertible securities. The Company may acquire a mix of controlling and non-controlling interests in Private Hydrogen Assets, however the Company intends to invest principally in non-controlling positions (with suitable minority protection rights to, inter alia, ensure that the Private Hydrogen Assets are operated and managed in a manner that is consistent with the Company’s investment policy).
Given the time frame required to fully maximise the value of an investment, the Company expects that investments in Private Hydrogen Assets will be held for the medium to long term, although short term disposals of assets cannot be ruled out in exceptional or opportunistic circumstances. The Company intends to re-invest the proceeds of disposals in accordance with the Company’s investment policy.
The Company observes the following investment restrictions, assessed at the time of an investment, when making investments in Private Hydrogen Assets:
· no single Private Hydrogen Asset will account for more than 21 per cent. of Gross Asset Value;
· Private Hydrogen Assets located outside developed markets in Europe, North America, the GCC and Asia Pacific will account for no more than 20 per cent. of Gross Asset Value; and
· at the time of an investment, the aggregate value of the Company’s investments in Private Hydrogen Assets under contract to any single Offtaker will not exceed 40 per cent. of Gross Asset Value.
The Company will initially acquire Private Hydrogen Assets via HydrogenOne Capital Growth Investments 1 LP (the ‘HydrogenOne Partnership’), a wholly owned subsidiary undertaking of the Company structured as an English limited partnership which is controlled by the Company and advised by the Investment Adviser. The HydrogenOne Partnership’s investment policy and restrictions are the same as the Company’s investment policy and restrictions for Private Hydrogen Assets and cannot be changed without the Company’s consent. In due course, the Company may acquire Private Hydrogen Assets directly or by way of holdings in special purpose vehicles or intermediate holding entities (including successor limited partnerships established on substantially the same terms as the HydrogenOne Partnership) or, if the Company is considered a ‘feeder fund’ under the Listing Rules, other undertakings advised by the Investment Adviser and, in such circumstances, the investment policy and restrictions will also be applied on a look-through basis and such undertaking(s) will also be managed in accordance with the Company’s investment policy.
Listed Hydrogen Assets
The Company also invests in quoted or traded Hydrogen Assets, which will predominantly be equity securities but may also be corporate debt and/or other financial instruments (“Listed Hydrogen Assets”). The Company is free to invest in Listed Hydrogen Assets in any market or country with a market capitalisation (at the time of investment) of at least US$100 million. The Company’s approach is to be a long-term investor and will not ordinarily adopt short-term trading strategies. As the allocation to Private Hydrogen Assets grows the Listed Hydrogen Assets are expected to include strategic equity holdings derived from the listing of operational companies within the Private Hydrogen Assets portfolio over time.
The Company observes the following investment restrictions, assessed at the time of an investment, when making investments in Listed Hydrogen Assets:
· no single Listed Hydrogen Asset will account for more than 3 per cent. of the Gross Asset Value;
· each Listed Hydrogen Asset must derive at least 50 per cent. of revenues from hydrogen and/or related technologies; and
· the target allocation to Listed Hydrogen Assets will be approximately 10 per cent or less of Gross Asset Value, subject to a maximum allocation of 30 per cent of Gross Asset Value.
Cash
During the initial Private Hydrogen Asset investment period after a capital raise and/or a realisation of a Private Hydrogen Asset, the Company intends to hold the relevant net proceeds of such capital raise/realisation in cash (in accordance with the Company’s cash management policy set out below) pending subsequent investment in Private Hydrogen Assets.
Investment restrictions
The Company, in addition to the investment restrictions set out above, comply with the following investment restrictions when investing in Hydrogen Assets:
· the Company will not conduct any trading activity which is significant in the context of the Company as a whole;
· the Company will, at all times, invest and manage its assets
i. in a way which is consistent with its object of spreading investment risk; and
ii. in accordance with its published investment policy;
· the Company will not invest in other UK listed closed-ended investment companies; and
· no investments will be made in companies or projects that generate revenues from the extraction or production of fossil fuels (mining, drilling or other such extraction of thermal coal, oil or gas deposits).
Compliance with the above restrictions is measured at the time of investment and non-compliance resulting from changes in the price or value of Hydrogen Assets following investment will not be considered as a breach of the investment policy or restrictions.
Borrowing policy
The Company may take on debt for general working capital purposes or to finance investments and/or acquisitions, provided that at the time of drawing down (or acquiring) any debt (including limited recourse debt), total debt will not exceed 25 per cent of the prevailing Gross Asset Value at the time of drawing down (or acquiring) such debt. For the avoidance of doubt, in calculating gearing, no account will be taken of any investments in Hydrogen Assets that are made by the Company by way of a debt investment.
Gearing may be employed at the level of a special purpose vehicle (“SPV”) or any intermediate subsidiary undertaking of the Company (such as the HydrogenOne Partnership) or, if the Company is considered a ‘feeder fund’ under the Listing Rules, other undertakings advised by the Investment Adviser in which the Company has invested or the Company itself. The limits on debt shall apply on a consolidated and look-through basis across the Company, the SPV or any such intermediate holding entities (such as the HydrogenOne Partnership) or, if the Company is considered a ‘feeder fund’ under the Listing Rules, other undertakings advised by the Investment Adviser in which the Company has invested but intra-group debt will not be counted.
Gearing of one or more Hydrogen Assets in which the Company has a non-controlling interest will not count towards these borrowing restrictions. However, in such circumstances, the matter will be brought to the attention of the Board who will determine the appropriate course of action.
Currency and hedging policy
The Company has the ability to enter into hedging transactions for the purpose of efficient portfolio management. In particular, the Company may engage in currency, inflation, interest rates, energy prices and commodity prices hedging. Any such hedging transactions will not be undertaken for speculative purposes.
Cash management
The Company may hold cash on deposit and may invest in cash equivalent investments, which may include short-term investments in money market type funds (“Cash and Cash Equivalents”).
There is no restriction on the amount of Cash and Cash Equivalents that the Company may hold and there may be times when it is appropriate for the Company to have a significant Cash and Cash Equivalents position. In particular, the Company anticipates holding cash to cover the near-term capital requirements of the Pipeline of Private Hydrogen Assets and in periods of high market volatility. For the avoidance of doubt, the restrictions set out above in relation to investing in UK listed closed-ended investment companies do not apply to money market type funds.
Investment Adviser’s report
About the Investment Adviser
In July 2025, the Company announced a change of investment adviser to RWC Asset Management LLP (“Redwheel”) and a change of Alternative Investment Fund Manager (“AIFM”) to Global Fund Management Services Limited (“GFM”), along with a recommendation to shareholders to pursue a managed realisation of the Company’s remaining assets (“Managed Realisation”).
Redwheel is an established investment management firm with c.US$21 billion under management, and is experienced in advising two London-listed investment trusts with combined net assets in excess of £1.2 billion. Redwheel is a global organisation with offices in London, Miami, Singapore and Copenhagen and global sales and servicing coverage with a focus on active management.
Portfolio
Portfolio summary
The Company holds Private Hydrogen Assets through the Limited Partnership as detailed below.
Company
Country of incorporation
Value of investment £’000
Private Hydrogen Assets held by the Limited Partnership at 30 June 2025
Sunfire SE
Germany
23,785
Elcogen plc
United Kingdom
8,300
HiiROC Limited
United Kingdom
7,900
Strohm Holding BV
The Netherlands
8,950
Bramble Energy Limited
United Kingdom
274
Cranfield Aerospace Solutions Limited
United Kingdom
2,750
Swift Hydrogen*
United Kingdom
0
Total
51,959
Valuation
An independent third-party valuation agent has carried out fair market valuations of the Private Hydrogen Assets at 30 June 2025, which have been reviewed by the Investment Adviser’s Valuation Committee and the AIFM, and the Directors have satisfied themselves as to the methodology used and the discount rates and key assumptions applied.
Private Hydrogen Assets at 30 June 2025 have been valued using either the discounted cash flow (‘DCF’) methodology, recent third party investment, or net asset values consistent with the International Private Equity and Venture Capital Valuation (“IPEV”) Guidelines.
Valuations are updated for all Private Hydrogen Assets on a quarterly basis and approved by the AIFM, the Valuation Committee and the Board, and are audited annually by the Company’s auditor, KPMG.
* Swift Hydrogen has been reduced to zero to reflect the likelihood of any value being recovered.
Hydrogen industry landscape
The outlook for the clean hydrogen sector is mixed. Global hydrogen demand continues to grow but remains dominated by fossil-derived hydrogen for traditional applications in the refining and chemical industries.
Despite this, final investment decisions in global clean hydrogen capacity are set to nearly double in 2025. Global installed electrolyser capacity and green hydrogen production is on track to more than double, although projections to 2030 have been downgraded. While clean hydrogen offtake agreements continue to be signed, momentum is slowing. Global policy support for both production and demand continue to advance, but with implementation challenges.
The EU has led in green hydrogen investment, policy support and offtake agreements to date. It has set binding clean hydrogen quotas on industry and transport (supported by regulated targets for aviation and shipping), but delayed implementation by member states, high costs and other constraints mean these targets are off track. In July, contracts were signed for the first ten commercial-scale green hydrogen production projects under the UK government’s flagship support programme. A new UK Hydrogen Strategy expected in autumn 2025, which the government has signalled will define a more focussed role for hydrogen compared to strategy published four years ago.
Recent developments in international aviation and shipping regulations point to a growing international demand for lower‑carbon fuels, including clean hydrogen derivatives in the longer-term, but with natural gas and bio-based fuels likely to be greater near-term beneficiaries. Taken together, the landscape and outlook for clean hydrogen is evolving and increasingly nuanced across geographies and sectors. Post-period, in international aviation and shipping regulations point to a growing international demand for lower-carbon fuels, including clean hydrogen derivatives in the longer-term, but with natural gas and bio-based fuels likely to be greater near-term beneficiaries. In October 2025, the adoption of hydrogen derivatives in shipping has likely been negatively impacted through a vote by International Maritime Organization (IMO) to adopt stricter global rules on greenhouse gas (GHG) emissions.
Appointment post-period end
Redwheel was appointed by the Board of the Company at the end of July to assist in the process outlined to shareholders in the Chairman’s Statement and described in more detail in the recent Circular. Whilst we were not the Investment Adviser during the period covered in this Report, since our appointment we have been working closely with the Board, AIFM, and other advisers to develop our understanding of the portfolio companies and the current fair valuation of the Company’s holding in each. That work has led to the NAV figure for 30 June and the period performance highlighted in this Report. The announced reduction in NAV corresponds to the challenging market conditions and challenging circumstances several companies are facing, particularly in their ability to raise additional working capital, and a fundamental review of valuation assumptions. Redwheel believes that more conservative assumptions are appropriate.
Performance
NAV per share decreased by 54.1% from 31 December 2024 to 30 June 2025 (90.39p to 41.48p), with NAV falling from £116.4 million to £53.4 million over the period.
The share price increased over the same period from 21.65p to 27.45p, an increase of 26.8%.
Portfolio developments
Sunfire SE
Sunfire SE, the leading German industrial electrolyser producer, of pressure alkaline (‘AEL’) and solid oxide electrolysers (‘SOEC’)
% of NAV
44.5%
Date of investment
October 2021
Co-investors
Planet First Partners, Lightrock, SMS, Neste, Copenhagen Infrastructure Partners, Carbon Direct Capital Management, Blue Earth Capital, Amazon Climate Pledge Fund, GIC
Period updates
· Successfully converted legal form to a European Stock Corporation (Societas Europaea – SE), enhancing corporate governance and establishing operations as Sunfire SE.
· Secured a €200 million guaranteed financing package to support scale-up, customer advance payments, and warranty obligations. The five-bank consortium was led by Commerzbank and included Société Générale, BNP Paribas, LBBW, and Ostsächsische Sparkasse Dresden, with parallel guarantees from the German Federal Government and the Free State of Saxony.
· Brought Finland’s first industrial-scale green hydrogen plant at Harjavalta into operation, in partnership with P2X Solutions and Finland’s President Alexander Stubb. Sunfire supplied the 20 MW pressurised alkaline electrolyser; Module One began production in February, and the site was inaugurated in March.
· Achieved successful handover of the 10 MW RWE Lingen AEL system in May following completion of its trial period. The 100 MW RWE Lingen AEL progressed through final design and procurement toward execution readiness.
· Reinforced scale-up supply chain through partnership with KK Wind Solutions, which announced a 100 MW class power supply unit tailored to Sunfire’s pressurised alkaline platform.
· Announced a strategic adjustment to production footprint by relocating manufacturing and after-sales operations from Monthey, Switzerland, to Germany.
· Karlsruhe Institute of Technology and Sunfire upgraded technology for carbon-neutral fuel production in the Kopernikus P2X Project, improving production efficiency for sustainable aviation fuels.
· Entered the Spanish market with a new electrolysis project for Repsol in Bilbao (10 MW AEL) – with Spain emerging as a leading location for the production of green hydrogen. The plant is scheduled to go into operation in 2026. Sunfire has been selected for a 100 MW AEL hydrogen project in Spain as a result of this.
Contributing factors to valuation
The valuation of Sunfire reflects a more measured outlook, particularly from a combination of market and regulatory factors. Green hydrogen market conditions remain challenging, with regulatory uncertainty in certain jurisdictions, while there have also been broader market headwinds. These factors have necessitated a more conservative approach to valuation than was previously forecast. This is done by valuing the company using DCF at a higher discount rate with a weighting to the performance of public market comparables which also negatively impacts the valuation. Sunfire remains a global leader and our valuation is supported by the delivery of contracted volumes. Sunfire is well positioned to benefit from increasing regulatory clarity and reduced competitive pressure.
Post-period update
Sunfire announced a cooperation with Germany’s leading defense and technology company Rheinmetall, which aims to reduce dependence on global fossil fuel supplies. As a core partner in the “Giga PtX” initiative, Sunfire provides the hydrogen production unit essential for e-fuel synthesis. The project envisions hundreds of modular plants across Europe, each producing up to 7,000 tons of fuel annually.
Elcogen plc
Elcogen, a global leader in solid oxide technology
% of NAV
15.5%
Date of investment
May 2022
Co-investors
Biofuel OÜ, VNTM Powerfund II, Baker Hughes, HD Hyundai Group
Period updates
· Honoured with the Frost & Sullivan 2024 European Enabling Technology Leadership Award in the European Solid Oxide Electrochemical Cell Industry.
· Elcogen named on TIME’s coveted list of ‘World’s Top GreenTech Companies of 2025’.
· Elcogen and partners unveil SYRIUS Project which aims to transform the steel industry by enabling hydrogen production and circular energy use within the steelmaking process. Backed by a €10 million grant and a timeline of less than five years, the project seeks to make a significant impact on the technology for the decarbonisation of steel.
· Announced that it has secured a €5 million investment from SmartCap, an Estonian state-owned venture capital fund supporting Estonian ‘greentech’ companies. This investment will contribute to Elcogen’s growth trajectory and will be instrumental in scaling its operations, production capacity and business development.
· Casale and Elcogen publicly announced an MoU in May to collaborate on green ammonia projects including SOEC-based solutions.
Contributing factors to valuation
The valuation of Elcogen has been revised downwards to reflect a more uncertain outlook stemming from a challenging fundraising environment. The environment makes it difficult to secure growth capital under favourable terms, creating uncertainty around the pace of operational scaling and commercialisation activities. These factors have necessitated a valuation approach incorporating a revised discount rate to reflect the heightened financial uncertainty and the impact of alternative financing arrangements on shareholder positions.
Post-period update
Post period-end, funding has been secured through convertible loan notes from two existing shareholders, providing near-term liquidity but introducing potential dilutive effects on the ownership structure for those shareholders who do not participate.
After the period end, the company opened ELCO1 manufacturing facility on the outskirts of Tallinn significantly boosting production capacity.
HiiROC Limited
HiiROC Thermal Plasma Electrolysis, for low cost, zero CO2 emission Hydrogen production
% of NAV
14.8%
Date of investment
November 2021
Co-investors
Melrose Industries (GKN Aerospace), Centrica, Hyundai, Kia, Wintershall Dea, VNG, CEMEX
