HDF Energy is narrowing its hydrogen project development focus as it looks to steady finances.
In its H1 2024 results, the company said its efforts would be focused on 14 undisclosed renewable hydrogen power plant projects to open the door to investors as it hopes to start construction work next year.
H2 View understands that 11 projects under HDF development, previously announced in its 2023 financials, are essentially being de-prioritised.
“Projects not included on the priority shortlist nonetheless remain active and represent significant potential for growth in the future,” it said.
HDF’s portfolio of projects at an advanced stage of development is now “stabilising,” the firm claimed. It added that portfolio monitoring will provide the “earliest indicator of HDF’s value creation for both the group and all project stakeholders.”
The financial report said that HDF estimates that it will generate revenues representing between 12-17% of construction costs, “via the provision of engineering services and supply of fuel cells during the power plant construction phase.”
In May, HDF secured up to €172m ($183m) from the European Commission to support its fuel cell factory in Blanquefort, France.
Read more: HDF secures Hy2Move funding for fuel cell development
HDF noted that the final grant notification is a key step to allowing the industrial teams to begin development work planned within the Important Project of Common European Interest (IPCEI) framework.
The French company added, “The financing agreement with Bpifrance is currently under discussion. As such, no income has been recognised in relation to this item in the first half 2024 financial statements.”
Despite its number of projects at an advanced stage of development increasing by one this year compared to last, its revenues dropped by over €1,000.
Additionally, its net financial income/expense and tax effects increased from €2.9m to €5.4m this year. Besides financing operating expenses, HDF also invested €8.3m into the Blanquefort plant, which was included in the financing of the IPCEI framework.
Damien Havard, Chairman and CEO of HDF, said, “Our aim is to ensure that the investments we have incurred over the past three years, in both prospecting and industrial research, bear fruit within the short term.”
An HDF spokesperson told H2 View, “We will provide specific updates on individual projects at key milestones, such as major partnership agreements, the involvement of new investors, or financial closure.”
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