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Skip to content 12 July 2023
Canada Pension Plan Investment Board (CPP Investments) and hydrogen project developer Power2X today announced a long-term investment partnership aimed at advancing Power2X’s leading role in the global clean energy transition.
The partnership plans to invest an initial €130 million to accelerate the growth of Power2X as a development platform and fund green molecule projects. The investment supports Power2X’s mission to become a long-term developer, owner, and operator of next-generation energy assets with a focus on green hydrogen and other clean molecules such as green methanol and ammonia.
Power2X develops large-scale new energy assets and infrastructure focusing on decarbonizing industrial value chains and heavy transport in collaboration with industrial companies around the world. The company is focused on clean hydrogen, ammonia, and methanol, with a diverse portfolio of projects that are initially prioritising European demand. Under the terms of the deal, CPP Investments will acquire a majority interest in Power2X.
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Power2X is committed to shaping the clean energy transition and helping bring about widespread decarbonization in arenas that are harder to abate. We are focused on developing, owning, and operating projects for their full lifecycle, ensuring sustainable growth, stability and impact. We want to do this on an industrial scale, building a portfolio of projects that allows us to advance the global energy transition.
CPP Investments’ capital injection gives us a global mandate for expansion, enabling development of the Power2X’s execution and technology capabilities, and building on the already strong foundations we have built with our existing consulting and engineering knowledge.
As part of the deal, we will also join the CPP Sustainable Energies Group; a group of companies that spans long-term tangible assets in renewable and conventional energy, carbon capture, utilities, power generation, and emerging and disruptive opportunities. As of March 31, 2023, the Sustainable Energies group portfolio totaled C$ 32 billion in net assets.
The Canada Pension Plan Investment Board (CPP Investments) is a professional investment management organization that manages the Fund in the best interest of the 21 million contributors and beneficiaries of the Canada Pension Plan. Investments are made worldwide in public equities, private equities, real estate, infrastructure, and fixed income. On March 31, 2023, the Fund totaled C$ 570 billion.
Our existing hydrogen projects – including ErasmoPower2X, a €1bn solar and hydrogen plant, and MadoquaPower2X, a €1bn industrial- scale hydrogen and green ammonia project – show track record for large scale delivery and management. We have ambitious plans for the future with an initial focus on Europe and also actively looking at North America.
We are focused on clean hydrogen, ammonia, and methanol, and our ambitious plans will help us meet European, and then wider, demand for green and clean molecules. These products are important in end use cases that cannot easily use green power, such as industrial processes and mobility. Green hydrogen is the most obvious example of a green molecule. Green hydrogen forms the foundation for various other green molecules, such as green ammonia (obtained by combining green hydrogen with nitrogen). Additionally, green hydrogen can be combined with carbon to produce synthetic methane and methanol. However, for these to qualify as “green” molecules, it is crucial to tightly control and recycle the carbon throughout the entire supply chain.
Besides our current project development portfolio, we are actively exploring opportunities for new projects in the Netherlands, Scandinavia, Germany, the Baltics and in North America. We will assess each opportunity as it arises, in line with our strategy for growth.
Next to project development we also work as a consultant under our separate company “Power2X Consulting”. This covers the full energy project value chain, from setting strategies to developing and delivering complex capital projects. All the while, we deploy our understanding and deep expertise in the markets that we serve.
Our consulting services support greenfield projects to produce green hydrogen, new technology scale-ups to produce sustainable fuels, site redevelopments in major industrial and harbor areas, and the decarbonization of energy intense assets, such as power plants, refineries, steel and cement plants.
We build long-term relationships with our clients and provide support throughout the energy value chain. Uniquely, our advisory services can lead to co-investment in our client’s project to share risks and upsides. We do this on a global basis, recognizing that the energy transition is a global challenge.
Power2X has a by team of more than 50 skilled people that bring a wealth of knowledge and expertise – spanning engineering, finance, renewable energy, and science backgrounds. Together, our people create a strong, resilient, impact-driven and ambitious team that delivers tangible results.
People
Large-scale green molecule projects currently in development
Injection from CPP investments into Power2X
More than 20 collaborations with organizations across the energy value chain
