ZEG Power’s ground-breaking technology
for clean hydrogen production is attracting significant attention. The globally
mandated AP Ventures and SPARX Group (Mirai Creation Fund), in addition to
Nysnø, the Norwegian state-owned climate investment fund, are among investors
investing over NOK 130 million into the company.
ZEG Power develops clean hydrogen
production technology with integrated carbon capture, based on sorbent enhanced
reforming, producing streams of high purity hydrogen and high purity carbon dioxide
ready for utilisation or storage. The technology was originally developed at
the Institute for Energy Technology (IFE), which through its venture arm IFE
Invest, will remain ZEG Power’s major owner.
The Norwegian start-up has concluded an
over-subscribed round of 130 million NOK, surpassing the 100 million NOK
original target. Existing investors IFE Invest and Stratel are joined by AP
Ventures, Nysnø, SPARX Mirai, Nordea
Investment Management, Danske Capital, CCB, and CO2 Management. The company’s
near-term goals are to focus on the upscaling and commercialisation of their
technology to the 250 – 5000 tonnes H2/pa scale, the recruitment of a
high-performing team, and growth of key partnerships.
The integrated and cost-competitive system
will meet the growing demand for zero-emission hydrogen for both mobility and
industrial applications. The first ZEG-H2 plant will be built in CCB Energy
Park at Kollsnes, adjacent to the planned Northern Lights large scale CO2
storage facility. Production of clean hydrogen will start as early as 2022.
Until the Northern Lights CO2 storage facility is established, ZEG Power will
use renewable biogas as input-gas in order to enable clean hydrogen production.
Hydrogen production from the first ZEG-H2
plant and future site expansion shall provide zero-emission fuels to Norwegian
and international transport and industry users. This will accelerate the
transition to hydrogen as part of wider decarbonisation efforts by the
Norwegian economy.
Quotes
“This overwhelming interest, from some of the
world’s leading technology players, clearly shows how important the efficient
production of emission-free hydrogen is for the future. It has been important for us to
attract these types of investors, bringing “smart capital” to the table. Having
these key players on board provides ZEG Power with financial muscles and the
ability to succeed with our ambitious plans, both in Norway and internationally.”
says Kathrine K. Ryengen, CEO, ZEG Power.
“The development of low-cost clean hydrogen
technologies is critical to the decarbonisation of hard to abate sectors and
the accelerated adoption of hydrogen mobility. I am very impressed by the ZEG
Power team, and the innovative technology they are set to rollout to market. As
a board member, I look forward to working with ZEG Power; sharing AP Venture’s
expertise, experience and network within the global hydrogen economy to create
further value for the Company.”, says Kevin
Eggers, Partner, AP Ventures
– The
ZEG technology is an important next step to ramp-up clean hydrogen production,
and enables Norway to build on existing industries and new markets towards the
hydrogen economy. It is especially attractive that ZEG Power brings together
value chains for hydrogen with carbon capture and storage, bringing new
opportunities for Norway as an energy nation. We look forward to supporting ZEG
Power through this next phase of commercialization at Kollsnes and beyond,
says Siri Kalvig,
CEO of Nysnø Climate Investments.
“The production of low-carbon and low-cost
hydrogen is key to unlocking the benefits of a hydrogen society. I am very
excited by the potential of ZEG Power’s technology and look forward to
supporting ZEG Power through scale-up and commercialisation.”, says Masatoshi
Fukami, Representative Director, Executive Deputy President, for the Mirai
Creation Fund, SPARX
Group.
“We are
actively searching for companies that can help traditional industry companies transform
to a future low-carbon regime. We believe ZEG Power have the potential to be
one of those and are pleased to be an investor in the company”, says Lars Erik
Moen, Head of Equity, Danske Invest.
“IFE has researched and developed the technology
since 2001, and has put considerable efforts and resources into developing ZEG
Power. We are very pleased to now get new investors onboard, with relevant
competencies, network and capital to develop the company further”, says Nils Morten Huseby, President
Institute of Energy Technology (IFE).
“We
are looking forward to further develop and scale-up the ZEG technology together
with our new investors. Our clean technology will contribute to reach climate
neutrality as hydrogen becomes key in many industrial sectors.” says Jørgen
Lundberg, CEO of IFE Invest AS.
“Our
investment philosophy is Fun, Sense and Profit. So far, our investment in ZEG
Power has made significant sense. Looking forward, with the new team, excellent
partners, and highly regarded new owners in place, we look forward to
fulfilling the remaining two; Fun and Profit!, says Reidar Lorentzen, Chairman,
Stratel AS.
“It
has been fascinating to follow ZEG Power as a Boardmember and seed investor on
the journey from R&D project to a commercial scale-up that has attracted
specialised international and national investors. ZEG Power strikes a nerve in
the current energy transition with its relevant technology for producing hydrogen
including carbon capture”, says Audun Abelsnes, Managing Director of Techstars Energy
“CCB has a strategic ambition to become an active
participator in building a total value chain, providing clean energy to the
market. Based on ZEG Power’s technology, CCB will contribute to establish a
future large-scale production and distribution of emission-free hydrogen at CCB
Energy Park. This will be the best location for providing clean energy in
various forms, both compressed and liquefied H2, and other future emission-free
products”, says Ronny Haufe,
EVP, Coast Center Base AS.
ABG Sundal Collier and First Corporate acted as
financial advisors to ZEG Power in connection with the capital raise. Schjødt
acted as legal advisor to ZEG Power.
About ZEG Power
Created in 2008, ZEG Power is a Norwegian
company located in Oslo, that aims to offer the world a cost efficient, clean
alternative for energy production.
ZEG Power delivers technology for the
efficient production of clean hydrogen from hydrocarbon gases, with integrated
carbon capture. Examples of hydrocarbon gases are natural gas and biogas.
Natural gas is currently the largest source of hydrogen. Hydrogen from biogas combined
with carbon capture can achieve a negative carbon footprint.
ZEG Power’s technology is based on research
and development originated from the Institute for Energy Technology (IFE).
More info: www.zegpower.com
About Investors
About AP Ventures
AP Ventures is a venture capital fund
headquartered in London. The Fund operates a global mandate to invest in
pioneering new technologies and businesses which aim to solve global challenges
such as renewable energy integration, resource scarcity and a growing
population.
Focus areas include: the hydrogen value
chain; fuel-cell electric mobility; energy storage platforms; water treatment
solutions; sensors; durable electronics; and biomedical devices.
The existing portfolio includes investments
in Altergy Systems, Food Freshness Technology Holdings, ERGOSUP, Greyrock
Energy, High-Yield Energy Technologies, Hydrogenious Technologies and United
Hydrogen Group. All these companies either utilise or enable the use of
Platinum Group Metals (PGMs).
AP Ventures is led by Andrew Hinkly
(Managing Partner) and Kevin Eggers (Partner). Investors include Anglo-American
Platinum, the Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium, and the
Public Investment Corporation.
More info: www.apventuresllp.com
About
SPARX Group
The Mirai Creation Fund I began operations in November 2015 with
financing of JPY 13.5 billion from three companies: Toyota Motor Corporation,
Sumitomo Mitsui Banking Corporation, and SPARX, the Fund’s general partner.
Ultimately, the Fund received contributions from 20 companies, including the
above three. Casting intelligent technologies, robotics, and hydrogen-economy
technologies as core technologies of the future, Fund I has invested in
approximately 50 companies and projects—from the US, the UK, Israel, Singapore,
and Japan—that possess innovative technologies in these fields. In H2 2018,
SPARX began managing the Mirai Creation Fund II, which targets the three
existing Mirai Creation fields along with the two additional areas of
electrification and new materials. As of February 28, 2020, the combined AUM
for Fund I and Fund II were JPY 109.3 billion.
Mirai Creation
Fund investment track record: https://mirai.sparx.co.jp/en/investment
About Nysnø
Climate InvestmentsNysnø Climate Investments is a state-owned investment
company established in 2017 and based in Stavanger, Norway. Nysnø Climate
Investments manages NOK 1.4 billion and invests in companies and funds with
profitable and smart solutions to climate change. Focus areas for investments are
renewable energy, resource efficiency, enabling technologies, sustainable
demand and circular economy. The existing portfolio
includes Otovo, eSmart Systems, Disruptive Technologies, NorSun, Sarsia Seed II
and ArcTern Ventures Fund II. For more
information see www.nysnoinvest.no/en
About CCB
Coast Center Base (CCB) is a Norwegian
company with extensive experience and expertise within providing facilities,
services, production, engineering and maintenance. CCB has a strong focus on
value chain management and is well established for operating and participating
through networking. CCB is a 24/7 company with locations along the Norwegian
coast and in Las Palmas.
Our ambition is to operate in a best
possible environmental way. We organize our locations and design our activities
in such a way that our customers and environment can act or conduct their
business with a reduced carbon footprint.
For more information, see: www.ccb.no
About Danske Invest
Danske Invest Asset Management AS is a
Norwegian asset manager wholly owned by Copenhagen-listed Danske Bank A/S, one
of the 20 largest banking groups in Europe. The firm manages Norwegian equities
and fixed income, in addition to a number of multi-asset funds and
discretionary mandates.
About Stratel
Stratel
AS is a family owned Norwegian investment and development company, with the
investment philosophy for Fun, Sense and Profit. The company is well known for
successful investments in both startups and ventures: www.stratel.no
About IFE
IFE is a
leading international research institute within energy, health and industrial
development.
IFE Invest AS is a fully-owned subsidiary of IFE, established to strengthen the
commercialization effort from the institute and to contribute to a more active
development of the spin-out companies. IFE Invest is responsible
for all commercialization activities from IFE.
