Plug Power, Chart Industries and Baker Hughes are planning to become cornerstone investors in the formation of the FiveT Hydrogen Fund, a new private infrastructure fund focused on delivering clean hydrogen infrastructure projects.
Plug Power will commit $188 million to the new fund, and Chart Industries and Baker Hughes will each invest $58 million, which will enable FiveT to help advance a broader global mission to address climate change and accelerate the energy transition.
FiveT Hydrogen Fund is seeking to raise $1.2 billion from both financial and industrial investors. It will exclusively finance projects in the production, storage and distribution of clean hydrogen. The fund will also seek alliances with industrial companies looking to build the hydrogen energy supply chain.
“We all know that this moment in the hydrogen journey requires a very innovative approach to infrastructure investment,” said Pierre Etienne Franc, CEO of FiveT Hydrogen Fund. “FiveT ambition is indeed to put forward a distinctive fund value proposition for financial and industrial LPs wishing to be the hydrogen infrastructure key players.”
He added, “We expect to welcome future commitments from E.U. and Asian strategic partners who are actively working on infrastructure projects and initiatives.”
FiveT Hydrogen Fund is expected to close in the third quarter 2021, with first cash contributed by investors by early 2022 and drawn as required for investment over several years.
Kali Persall is a reporter at Institutional Real Estate, Inc. and editor of iREOC Connect.