German green hydrogen firm HH2E has announced that it will file for self-administration after its majority shareholder pulled out of funding talks for its first hydrogen production facility.
HH2E today (November 8) said it had been negotiating funding for its 1GW Lubmin project with Foresight Group. An investee of Foresight, Foresight Environmental Infrastructure Limited (FGEN), took a majority shareholding in HH2E in May.
Despite those negotiations resulting in “final agreements” which the project developer expected to conclude this week, it said that Foresight pulled the funding on Thursday (November 7).
“Foresight Group reinformed HH2E AG that its investment committee had ultimately decided against providing the necessary funding,” a statement said. “Consequently, HH2E AG and its subsidiary, HH2E Werk Lubmin, are legally obliged to initiate insolvency proceedings.”
The company said its management was “prepared” and has taken “proactive measures” and intends to file for self-administration today.
Self-administration proceedings allow a financially distressed company to continue operating under its own management while restructuring, with court supervision to protect creditors’ interests. This process helps avoid liquidation by enabling management to develop and implement a recovery plan.
FGEN invested €22.3m into HH2E in July in the hopes of helping the firm secure orders for equipment used at its first two green hydrogen plants in Lubmin and Thierbach.
HH2E had recently looked to source additional third-party funding for the development of its Lubmin project.
In a statement, Foresight said, “The board does not believe that it is appropriate to do so at this time, reflecting the company’s approach to portfolio construction, risk and capital allocation in the context of the current market environment.
“The board and the investment manager are disappointed by this development, particularly given the potential for green hydrogen to play an important role in decarbonising heavy transport, industry, and other hard-to-abate sectors of the economy and the opportunity that remains at Lubmin and Thierbach.”
“We remain committed to maintaining continuity and stability in our operations as we work toward a long-term solution,” said Alexander Voigt, HH2E CEO. “I am convinced we will soon find a strategic partner who shares our passion for green energy and can support HH2E AG’s vision.”
The Lubmin project was expected to launch with 210MW of capacity in 2028 before scaling to 1GW.
