Copenhagen Infrastructure Partners close €3bn green hydrogen fund

It will invest in next-generation renewable energy infrastructure, including industrial scale power-to-x projects

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Copenhagen Infrastructure Partners (CIP) has reached final close on what is claimed to be the largest dedicated clean hydrogen fund globally.

The CI Energy Transition Fund I (CI ETF I) was oversubscribed and closed at the hard cap of €3 billion (£2.6bn), with commitments from investors across the Nordics, Europe, Asia-Pacific and North America.

It will invest in next-generation renewable energy infrastructure, including industrial scale power-to-x projects and green power generation through grid balancing.

The fund will primarily focus on greenfield projects in the Organisation for Economic Co-operation and Development (OECD) and aims to contribute to the decarbonisation of industries including agriculture, aviation, shipping, chemical manufacturing and steel production through the use of green fuels and feedstock and CO2-free fertilisers.

It has made a final investment decision on one investment and ownership on several industrial-scale development stage power-to-x projects, which are expected to produce green hydrogen, green ammonia and sustainable aviation fuel.

Once operational, CI ETF I’s current portfolio is estimated to reduce more than 7.5 million tonnes of CO2 annually – equivalent to removing around 1.6 million cars from the roads – and deliver more than four million tonnes of green fuels each year.

Jakob Baruël Poulsen, Managing Partner in CIP said: “We are very pleased to welcome a prominent group of existing and new institutional investors to CI ETF I and are delighted that investors share our confidence in and appetite for clean energy infrastructure projects and invest alongside CIP in the next phase of the energy transition.

“Solutions such as Power-to-X will be key for countries and industries to take the next big leap within reaching the commitments of the Paris agreement and achieving energy independence. As an industry pioneer and one of the global market leaders in greenfield renewable infrastructure investments, CIP is uniquely positioned to invest in this segment.”