Sector · Hydrogen
Hydrogen investment: preparing hydrogen projects for institutional capital
Hydrogen investors have become more selective. Capital is available for projects with credible offtake, secured power and a route to support funding, and scarce for those without. We help hydrogen developers raising £10m and above evidence the items that decide investment.
How investors see it
Hydrogen: where capital comes from, and what it needs.
Electrolytic hydrogen projects are judged on a short list of questions. Who will buy the hydrogen, on what terms and for how long? Where does the power come from, and at what cost? Is there a support mechanism, such as a revenue support contract or capital grant, and what stage is the application at? Is the electrolyser technology and supplier bankable?
Where those answers are documented, infrastructure funds, strategic investors and energy majors will engage. Where they are not, the project is still a development opportunity, and should be presented to development capital rather than to infrastructure investors.
Who we work with
- Developers of electrolytic hydrogen production projects
- Industrial clusters and offtakers developing hydrogen supply
- Hydrogen storage, transport and refuelling infrastructure
- Technology companies in the hydrogen value chain seeking growth capital
Investor criteria
What investors check before they invest
The Investor Readiness Review tests each of these against your materials before an investor does.
| What investors check | What they expect to see |
|---|---|
| Offtake | Named offtakers, signed or advanced heads of terms, volumes, duration and pricing basis. |
| Power | Secured renewable or grid supply, its cost, and the resulting load factor. |
| Support funding | Status of any revenue support or grant application and the conditions attached. |
| Technology | Electrolyser supplier, performance guarantees, degradation and stack replacement. |
| Site and consent | Site control, planning, hazardous substances consent, water supply and grid. |
| Model | Levelised cost of hydrogen built from the assumptions, with sensitivity to power price and utilisation. |
Capital providers
Who invests
Strategic investors
Energy majors, industrial gas companies and utilities
Infrastructure funds
Projects with contracted offtake and support funding
Specialist energy transition funds
Development portfolios and platforms
Development finance institutions
Projects in emerging markets and export oriented schemes
Family offices
Early stage development and co investment
Common issues
Where raises stall
Offtake by assumption
Demand described in the market but not committed by a named buyer.
Power cost not secured
A levelised cost based on a power price nobody has agreed to.
Support funding treated as certain
A subsidy application presented as an award.
Infrastructure investors approached too early
Development stage projects put to investors that need contracted revenue.
FAQ
Hydrogen: questions
Who invests in hydrogen projects?
What do hydrogen investors look for first?
Can a hydrogen project raise project finance?
Find out what an investor will see before approaching the market.
The Investor Readiness Review is a fixed fee assessment of your opportunity, written from the investor side of the table. You receive a scored report, the issues most likely to stop an investor, and the order in which to address them.