Denmark-based Copenhagen Infrastructure Partners (CIP) has taken a 26.67% stake in renewable energy developer CWP Global’s green hydrogen portfolio of early-stage projects across Australia, Africa and North and South America, which could increase the likelihood that they progress to final investment decisions (FIDs).
CIP has invested in the portfolio via its Energy Transition Fund I, which closed at €3bn from 65 institutional investors in August 2022. The fund is mainly focused on hydrogen and its derivatives, as well as biofuels and carbon capture, utilisation and storage (CCUS), with an eye towards greenfield development in Western Europe, North America, Australia and Asia.
CWP has not disclosed the value of the 26.67% stake, but confirms that the backing from CIP will accelerate its projects towards financial close and putting shovels in the ground.
“CIP’s investment is at the portfolio level, making it a partner in the development of CWP projects across four continents,” CWP’s chief commercial officer Ramy Lotfy tells Hydrogen Insight.
“This will enable CIP to bring in its financial heft and project development finance experience across our portfolio, and allow us to realise the very real potential in our green hydrogen development pipeline.”
CWP’s flagship green hydrogen project is the Australian Renewable Energy Hub (AREH), which it is co-developing (with a 17.8% equity stake) in a consortium with BP, Intercontinental Energy and Macquarie.
The BP-led consortium is on track to take FID on the first phase of the project in 2025 or 2026, with the full build-out expected to have 14GW of electrolyser capacity powered by 26GW of wind and solar assets. AREH could produce 1.8 million tonnes of green hydrogen a year or nine million tonnes of ammonia once fully commissioned.