Danish Green Hydrogen Startup to Raise $164 Million in IPO

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Green Hydrogen Systems A/S plans to raise about 1 billion Danish kroner ($164 million) in an initial public offering that will help the Danish startup expand its production of electrolyzers, the machines that split hydrogen from water.

It’s a pivotal moment for Green Hydrogen Systems as it moves to scale up its operations just as some of the world’s biggest economies and energy companies turn to hydrogen to cut climate-warming emissions.

Most of the funds will be raised from investors including Danish pension fund ATP, Denmark’s state investment firm Vaekkstfonden and Nordea Asset Management, Green Hydrogen Systems said in a document published Thursday. The listing on Nasdaq Copenhagen is based on a company valuation of about 2 billion kroner.

Green hydrogen is one of the hottest topics in the global shift away from fossil fuels. The clean-burning gas could help cut emissions from an array of polluting industries such as chemical production, steel making and shipping. The European Union plans to pump as much as 470 billion euros ($573 billion) of public and private investment into hydrogen in the coming decades.

“There is strong momentum in the market for green hydrogen supported by industrial demand and political decisions to sharply increase installed green hydrogen capacity in the coming years,” said Sebastian Koks Andreassen, chief executive officer of Green Hydrogen Systems. “To deliver on the demand and targets, it requires that our electrolyzer production capacity is scaled up significantly and rapidly.”

For hydrogen production to expand, companies like Green Hydrogen Systems will need to grow significantly and quickly as competition increases. In the past week, the U.S. industrial company Cummins Inc. and France’s McPhy Energy SA both announced plans for massive new factories to produce hydrogen equipment in Europe. That adds to a growing pipeline of capacity from more established companies such as Nel ASA and Siemens Energy AG.

The Danish startup has been working to industrialize production. It’s been building a new factory in southern Denmark that aims to have a capacity of as much as 75 megawatts by the end of this year. Current expansion plans will double that and the company may decide soon to expand further to reach 400 megawatts of capacity, Andreassen said.

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