Redwheel Next Generation Power Infrastructure Fund - Institutional Class · NASDAQ:ECOIX
Redwheel Next Generation Power Infrastructure Fund - Institutional Class — HydrogenOne Capital Growth — FY2023 Earnings Presentation
44 slides from Redwheel Next Generation Power Infrastructure Fund - Institutional Class's earnings presentation, Apr 18, 2024
Slide 1: FY23 Annual Results presentation
HydrogenOne Capital Growth plc FY23 Annual Results presentation Investing in clean hydrogen for a climate-positive impact LSE: HGEN 18th April 2024
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading this document, you agree to be bound by the limitations set out below. The information set out herein may be subject to updating, completion, revision and amendment and such information may change materially. Neither
Slide 3: Contents
Contents • Full year results for the year ending 31st December 2023 • Portfolio update and outlook • Appendix: Market update • Appendix: Invested companies update 3
Slide 4: 2023 highlights and outlook
2023 highlights and outlook £133m 103p • NAV increased by 5.8% to £132.7 million at 31 Dec 2023. NAV per share NAV NAV per share increased by 5.8% to 102.99p at 31 Dec 2023 • Positive revenue growth from portfolio companies, delivering £74.0 million in total revenue in the year to 31 Dec 2023, an in
Slide 5: How our portfolio contributes to clean hydrogen
How our portfolio contributes to clean hydrogen Feedstock GAS Grid Blending Refining and chemicals clean-up Renewables Electrolysis Storage & distribution Transport ELECTRICITY Off grid HydrogenOne activities • Conversion of renewables to hydrogen Gaussin hydrogen truck • Multiple hydrogen applicati
Slide 6: Distinctive and concentrated portfolio across the hydrogen value chain
HydrogenOne has a distinctive and concentrated portfolio, invested across the hydrogen value chain Access to a distinctive portfolio of private hydrogen businesses 1.5% Where we invest Thierbach Others 4.9% Top 10 95.1% • Revenue-generating equipment businesses 3.3% 4.9% • Hydrogen production projec
Slide 7: Financial and operational highlights 2023
Financial and operational highlights 2023 31 Dec 31 Dec 20232 2022 NAV per Ordinary Share 102.99p 97.31p • NAV and NAV per share increased by 5.8% NAV £132.7m £125.4m • The NAV increase was driven primarily by valuation Ordinary Share price 49.65p 79.30p uplifts to the Company's portfolio of private
Slide 8: Growing our NAV and NAV/share in 2023
Growing our NAV and NAV/share in 2023 NAV movements 2022 – 2023 (pence per share) NAV (£m) and NAV pence per share, 2021-23 110.00 145 105.00 103.0p 108.00 10.05 (0.31) 101.4p (1.00) 100.7p 100.0p (3.05) 106.00 100.00 97.3p 96.8p 96.9p 96.5p 135 £132.7m 104.00 94.9p £130.6m £129.7m 95.00 £128.8m 102
Slide 9: Portfolio valuation changes 2022-23
£21.8m £5.3m £27.1m £12.9m £0.8m £13.7m £11.5m (£6.1m) £5.4m £10.0m £0.6m £10.6m £3.4m £1.0m £4.4m £6.3m Portfolio valuation changes 2022-23 £5.6m £11.9m £20.4m £4.0m £24.4m £5.1m £1.8m £7.0m £11.6m £8.1m £19.7m £1.9m £0.0m Thierbach £1.9m £3.7m Listed (£0.3m) £3.4m £3.2m Net current assets £132.7m
Slide 10: Top and bottom NAV performers 2022-2023
Top 3 and bottom 3 NAV performers 2022-2023 Ramp-up of pipeline facility in Netherlands to 140km/year De-risking of hydrogen-electric turbo-prob and introduction of Dronamics platform Alkaline electrolysis supply capacity expansion at Solingen Continued development of fuel cell for mobility applicat
Slide 11: Five follow-on private investments and first private hydrogen project investment in 2023
Five follow-on private investments and first investment in a private hydrogen project in 2023 Thierbach £1.9m £3.5m £1.8m £0.4m £0.5m £2.5m Funding for an industrial- Follow-on funding with Follow-on funding Funding alongside Follow-on funding with Follow-on funding with scale green hydrogen strateg
Slide 12: HGEN valuation methodology
HGEN valuation methodology Valuations using IPEV guidelines Consistent approach to valuation • Valuations updated for the entire private portfolio on a quarterly basis, reviewed and approved by the AIFM and Board. HGEN’s valuation is audited annually by KPMG Discounted Cash Flow • The private portfo
Slide 13: Valuation basis and performance since investment
Valuation basis and performance since investment Valuation basis At Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 investment Sunfire GmbH investment (Supply Chain) PORI PORI PORI PORI PORI/DCF PORI/DCF PORI/DCF DCF DCF DCF Elcogen Plc investment (Supply Chain) PORI PORI PORI PORI/DCF PORI/DC
Slide 14: The Company's approach to valuation remains consistent
The Company’s approach to valuation remains consistent while the market has seen a strong rise and correction HydrogenOne NAV/share vs listed hydrogen shares (SOLGHYD) Portfolio companies’ performance vs listed hydrogen shares (SOLGHYD) 140 4.00 3.50 120 3.00 100 2.50 2.00 Index 80 1.50 1.00 60 0.50
Slide 15: ESG principles 2023 impact
Our alignment ESG principles 2023 impact Effective Boards £114 million 92% 91,116 tCO2e 141,695 tCO2e 571,294 MWh Our impact deployed in low-carbon EU taxonomy-aligned emissions avoided emissions avoided potential clean growth portfolio in 2023. Carbon neutral since IPO energy capacity in 2023 Scree
Slide 16: Contents
Contents • Full year results for the year ending 31st December 2023 • Portfolio update and outlook • Appendix: Market update • Appendix: Invested companies update 16
Slide 17: Distinctive and unique hydrogen portfolio
Distinctive and unique hydrogen portfolio Portfolio segmentation Portfolio segmentation Fund holdings (as of 31 Dec 23) by theme by geography Private portfolio NAV £m NAV % Sunfire GmbH 27 20% Elcogen Plc +1.1 24 18% 4% 15% +1.63 +1.1% 10% Strohm Holding B.V. 20 15% 21% 1% 28% 9% HiiROC Ltd 14 10% C
Slide 18: Investing alongside blue-chip industrials and funds
Investing alongside blue-chip industrials and funds Invested companies Co-investors Hydrogen production Storage & distribution Supply chain Hydrogen applications 18
Slide 19: 2023 portfolio newsflow
2023 portfolio newsflow Q3 2023 • Sunfire contract awarded for 100 MW alkaline electrolyser to a European refinery, and received €169m grant from IPCEI Q1 2023 • Elcogen awarded funding from IPCEI for €25.4m • HH2E launches 100MW green hydrogen production project at Thierbach • Strohm installs its f
Slide 20: HH2E: new corporate structure and access to Lubmin project
HH2E: new corporate structure and access to Lubmin project (6% HGEN NAV) HH2E Germany; 4GW 2030E Corporate restructuring early 2024 • Simplified corporate structure to facilitate future funding rounds: • Previous HGEN interests in project SPVs including Thierbach swapped for HH2E ‘topco’ • Lubmin SP
Slide 21: Sunfire: EUR 0.5 billion investment secured
Sunfire: EUR 0.5 billion investment secured (20% HGEN NAV) Sunfire: alkaline and solid oxide electrolyzers Recent developments • Industry-leading electrolyser manufacturer based in • Launched new alkaline electrolysis plant in Solingen, Germany and Switzerland; 500+ staff 500MW capacity • Revenues f
Slide 22: Elcogen: EUR 140 million funding secured
Elcogen: EUR 140 million funding secured (18% HGEN NAV) Solid oxide cell and stack innovation Strategic investor unlocks new growth Cell Stack Module Underlying electrochemical Manages the way the inputs, Module incorporates multiple technology which allows outputs, heat and pressure are stacks into
Slide 23: Technology development in multiple portfolio companies
Technology development in multiple portfolio companies Bramble: fuel cells HiiROC: plasma electrolysis Cranfield Aerospace: hydrogen flight HiiROC’s pilot units installed at Centrica’s Brigg site Bramble Energy PCBFC Liquid Cooled Stack Technology • Bramble Energy and EDAG Group • Installed pilot un
Slide 24: Progressing green hydrogen projects and supply chains
Progressing green hydrogen projects and supply chains HH2E: Germany developer Gen2 Energy: Norway developer Strohm: pipeline innovator 3 2 1 1. Administration building 2. Electrolysis building 3. Compressor building • Progressing projects at Thierbach • Approved detailed zoning plan for • Plant expa
Slide 25: Portfolio revenue generating with consistent growth
The portfolio is revenue generating and has produced consistent growth Growth in portfolio revenues since investment Portfolio revenues 16 80 £74m / +125% 14 Increase in revenues since investment (0x) 60 12 Revenue, £m 10 40 £33m / +70% 8 £19m / +112% 20 6 £9m 4 - 2020 2021 2022 2023 2 • 8 private c
Slide 26: Growing value for investors
Growing value for investors % of 2022-23 invested Activity Investments revenue portfolio growth (%) (31 Dec 23) • Cranfield Growing value for our investors • HiiROC • Business plan delivery in invested Early • IP demonstrators 33% • HH2E +76% stage • Project developers companies • Gen2 NanoSUN • Fol
Slide 27: Summary
Summary Identifying the best investment opportunities 2023 highlights Active Grow EBITDA Specialist team stewardship and exit >£500m pipeline • NAV increased by 5.8% from £125.4 million at 31 Dec 2022 to £132.7 million at 31 Dec 2023 • 2023 revenue from portfolio companies £74.0 million, an increase
Slide 28: Contents
Contents • Full year results for the year ending 31st December 2023 • Portfolio update and outlook • Appendix: Market update • Appendix: Invested companies update 28
Slide 29: What is driving the hydrogen economy?
What is driving the hydrogen economy? …projects Hydrogen Norsk e-Fuel Energy policies in 39 countries Transition for Net Zero Air Hydrogen fuel in heavy transport and power Quality …supply chains Energy Distributed renewables Security and storage Sunfire SOEC 29
Slide 30: 50% growth in green hydrogen production in 2023
50% growth in green hydrogen production in 2023 Xinjiang Solar Hydrogen Project start up 2023 260MW. Sinopec Liquid hydrogen plant Alabama 2023 start up 30 tonnes per day EUROPE 0.3GW 6.4GW NORTH AMERICA 0.3GW 4.1GW ME/ASIA 0.6GW 11.9GW AFRICA Ningxia Hydrogen Plant, China SOUTH AMERICA <0.1W 8.1GW
Slide 31: Strong increase in investment in clean hydrogen in 2023
Strong increase in investment in clean hydrogen in 2023 HydrogenOne’s deal flow tracker 20,000 32,000 2020 2022 2023 NEL Lhyfe NEL 17,500 AFC Energy Hy2Gen Hexagon Purus 28,000 Ceres Power Electric Hydrogen Amogy PowerCell SFC Energy NEOM Sweden AS ZeroAvia TKN 15,000 Ceres Power HyGen Ohmium 24,000
Slide 32: Contents
Contents • Full year results for the year ending 31st December 2023 • Portfolio update and outlook • Appendix: Market update • Appendix: Invested companies update 32
Slide 33: Fund holdings
Fund holdings As at 31 Dec 2023 As at 30 Sep 2023 Private portfolio NAV £m NAV % NAV £m NAV % Sunfire GmbH 27 20% 22 17% Elcogen Plc 24 18% 20 16% Strohm Holding B.V. 20 15% 12 10% HiiROC Ltd 14 10% 13 9% Cranfield Aerospace Solutions 12 9% 8 6% Bramble Energy Limited 11 8% 10 8% HH2E AG 7 5% 5 4% N
Slide 34: ESG KPIs and delivery in 2023
ESG KPIs and delivery in 2023 E S G Capital invested in low-carbon growth: Jobs supported: Positive and proactive engagement with private ✓ £113.7m since IPO to 31 Dec 2023 ✓ Over 1,400 full-time staff employed by private portfolio to deliver effective Boards: portfolio ✓ 100% representation on Boar
Slide 35: Sunfire GmbH investment (Supply chain)
Sunfire GmbH investment (Supply chain) Description Growth in revenues since investment German industrial electrolyser producer of pressure 16 alkaline (AEL) and solid oxide electrolysers (SOEC) Increase in revenues since investment (0x) 14 www.sunfire.de Investment size / date / 12 • £22m / Oct 21 &
Slide 36: Elcogen Plc investment (Supply chain)
Plc Elcogen Plc investment (Supply chain) Company description Growth in revenues since investment Solid oxide fuel cell and electrolyser manufacturer with presence in Estonia and Finland 16 Increase in revenues since investment (0x) www.elcogen.com 14 Investment size / date / • £20m / May 22 / 18% o
Slide 37: Strohm Holding B.V. investment (Storage & Distribution)
Strohm Holding B.V. investment (Storage & Distribution) Company description Growth in revenues since investment 16 Netherlands-based hydrogen pipeline company Increase in revenues since investment (0x) 14 www.strohm.eu 12 Investment size / date / • £10m / Aug 22 & Dec 22 & Nov 23 / 15% of NAV % of N
Slide 38: HiiROC Limited investment
HiiROC Limited investment (Storage & Distribution) Company description UK-based thermal plasma electrolysis developer, with Growth in revenues since investment world-leading (IP-protected) technology for low-cost, zero-emission hydrogen, also enabling flare/waste gas 16 mitigation and CO2 capture us
Slide 39: Cranfield Aerospace Solutions Ltd
Cranfield Aerospace Solutions Ltd Company description Growth in revenues since investment UK-based passenger flight innovator, powering turboprop 16 Increase in revenues since investment (0x) flight with hydrogen 14 www.cranfieldaerospace.com 12 Investment size / date / • £9m / Mar 22 & Apr 23 & Sep
Slide 40: Bramble Energy Limited
Bramble Energy Limited Company description Growth in revenues since investment UK-based fuel cell and portable power solutions company 16 Increase in revenues since investment (0x) www.brambleenergy.com 14 Investment size / date / 12 • £10m / Feb 22 / 8% of NAV % of NAV Co-investors • IP Group, BGF,
Slide 41: HH2E & Thierbach investments (Hydrogen Production)
HH2E & Thierbach investments (Hydrogen Production) Description German green hydrogen project developer with a focus on industrial customers. Operator of the Thierbach green hydrogen development project, in which HGEN has a direct investment. Lubmin www.hh2e.de Investment size / date / • HH2E: £5m /
Slide 42: NanoSUN Limited
NanoSUN Limited Company description Growth in revenues since investment UK-based developer of hydrogen distribution and mobile 16 refueling equipment Increase in revenues since investment (0x) www.nanosun.co.uk 14 Investment size / date / • £11m / Dec 21 & Feb 23 & Jul 23 / 4% of NAV 12 % of NAV Co-
Slide 43: Gen2 Energy
Gen2 Energy Company description Norwegian green hydrogen project developer www.gen2energy.com Oslo Investment size / date / • £4m / Mar 22 & Nov 23 / 3% of NAV Holandsvika % of NAV • 500MW – est. 2027 Co-investors • HyCap, Vitol, Hoegh LNG, Knutsen Group • Electrolysis with shipping transport HGEN i
Slide 44: Contact us
Contact us HydrogenOne Capital LLP: Dr JJ Traynor, Managing Partner E: JJ.Traynor@hydrogenonecapital.com Richard Hulf, Managing Partner E: Richard.Hulf@hydrogenonecapital.com 4 Manchester Square London W1U 3PD www.hydrogenonecapitalgrowthplc.com/ Barclays Bank PLC: Dion Di Miceli E: BarclaysInvestme
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