Investment firm Hydrogen One has revealed that it has invested ￡8.4 million ($10.2 million) in Netherlands-based hydrogen pipeline company Strohm as part of a funding round that closed at ￡11.8 million ($14.29 million).
The U.K.-based Capital Ventures said it completed a funding round for Strohm totaling ￡11.8 million ($14.29 million) alongside Shell Ventures, Chevron Technology Ventures and Evonik Ventures Dollar).
After the second round of funding is expected to close, Hydrogen One said it may invest an additional ￡1.7 million ($2.05 million), which is expected to be at least ￡5.1 million ($6.17 million). Hydrogen One has learned that, after the investment, Hydrogen One will be entitled to the seat of Strohm.
Strohm is expected to use the funding to expand its plant capacity in the Netherlands to meet its energy agenda with its innovative thermoplastic composite pipe (TCP) to reach its net zero target.
Martin van Onna, Managing Director of Strohm, said: "The investment in HydrogenOne allows us to increase our ability to serve this exciting and growing market."
Due to its corrosion and fatigue resistance, Strohm's technology is considered ideal for transporting hydrogen from offshore production sites. In May (2022), Strohm and Lhyfe announced a collaboration to build an offshore floating wind turbine with an integrated hydrogen production system that will deploy TCP technology.
"We recognized the fit between clean hydrogen and offshore wind at an early stage and developed a compelling pipeline solution to support it," explained Van Onna.
“TCP can transmit up to 9 times more energy than cables and can be used to store hydrogen, increasing the uptime of offshore wind farms. The pipe’s flexibility, non-corrosion, fatigue and embrittlement properties make it a Excellent pipeline solution for hydrogen generation from offshore wind farms.”
Commenting on the investment, Simon Hogan, Chairman of Hydrogen One, said: "With our latest investment in Strohm, we continue to demonstrate the impressive speed and quality of our capital deployment. This is the ninth private investment since the fund and an excellent addition to our growing portfolio."
"Strohm's core commitment to a sustainable future is by reducing the carbon footprint of global pipelines and providing solutions for clean hydrogen applications, a commitment we support. We look forward to working with Strohm's management team as it scales to meet the demands of hydrogen as the growing demand for energy.”
Peter van Giessel, Partner at Shell Ventures, added: "We look forward to working with Hydrogen One to further develop Strohm's potential. The company has certified and commercially deployed its products in a variety of applications around the world, and now An inflection point has been reached.”
"This investment underscores the versatility of Strohm's technology and its potential to play an important role in advancing the offshore renewable energy sector."
About Strohm
Strohm is the world's first and leading manufacturer of fully bonded, Thermoplastic Composite Pipe. The lightweight, high strength and corrosion resistant composite pipes provide cost and operational benefits in renewable energy and conventional oil and gas applications.