JLEN Environmental Assets (LSE:JLEN) is committing €9.2mln to a green hydrogen production site is located in Lubmin, Germany, in what marks the second investment of its kind by the company.
The London-listed investment company is investing as part of a consortium, which includes other Foresight-managed funds and development partner HH2E.
In Lubmin, the project is intended to produce in excess of 6,000 tonnes of green hydrogen (equivalent to 200,000 megawatt hours of energy) per year, over its initial 100 MW phase, with the project comprising electrolysis and integrated high-capacity battery storage, JLEN said in a statement.
A later scale-up could see the project expand significantly to grow capacity to over 1 gigawatt to generate more than 60,000 tonnes of green hydrogen.
"We are pleased to be making good progress with our partnership with HH2E, which is poised to become one of the largest producers of green hydrogen in Europe,” said Ed Warner, JLEN chair.
“They have a deep understanding of the sector and they are highly capable of developing attractive opportunities to unlock value for investors.
“Hydrogen has an important role to play in decarbonising heavy transport, industry, and other hard-to-abate sectors of the economy. Investing in this sector will remain an important near-term focus for the company as we continue to assess opportunities to recycle capital within the portfolio."
HH2E will operate the plant which will serve green hydrogen customers and offtakers, including the mobility sector and large-scale energy and industrial consumers.
JLEN highlighted that Lubmin already benefits from existing grid infrastructure, including two LNG terminals built in 2022.
A final investment decision for the project is anticipated in the coming months, with construction expected to follow thereafter.
Previously, in January, the company participated in an investment into the Thierbach green hydrogen project near Borna in Germany in partnership with HH2E.
JLEN expects both opportunities can provide attractive returns, in comparison to the average performance within its portfolio.