German green hydrogen developer HH2E has opened a call for investment offers and engaged a UK assurance firm to advise on a structured merger and acquisition (M&A) process after the company filed for insolvency.
With Earnest & Young, HH2E plans for the M&A process to start with exchanging information with potential investment bidders, and eventually conclude with submissions of indicative offers.
A shortlist of the most competitive bids will be finalised, with the process hoped to be concluded by the end of January 2025.
The company filed for self-administration after its previous majority shareholder, Foresight Environmental Infrastructure Limited (FGEN) pulled funding for its flagship 1GW green hydrogen project in Lubmin, Germany, at the final moment.
Read more:Court approves HH2E’s self-administration after hydrogen project funding loss
HH2E and its project subsidiary HH2E-Werk Lubmin were both included in the self-administration proceedings.
However, the firm says the project’s front-end engineering design has been finalised, “ensuring the project’s technical feasibility.” Furthermore, it has secured agreements and contracts for grid connections, pipelines, electrolysers and batteries.
Describing the project as “FID-ready,” HH2E co-founder and Board Member, Alexander Voigt, said the company was “transforming a temporary setback into a compelling investment opportunity.”
“Our journey, like that of many early-stage companies, has its challenges, but HH2E has consistently emerged stronger, having established a leading platform for industrial-scale green hydrogen projects in just three years.”
The company is also developing a second, similarly sized project in Thierbach, with two other locations in the pre-project investment decision phase.
Despite the optimism, the company’s funding drive comes as multiple investors and organisations back away from green hydrogen due to slowing market development.
FGEN, which had invested €22.3m into HH2E in July, pulled additional funding, with its parent company’s board saying it did not believe it would have been “appropriate” in the context of “current market conditions.”
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