Everfuel forms green hydrogen alliance with ITOCHU and Osaka Gas

Danish green hydrogen company Everfuel has entered into a strategic collaboration with HyVC ApS, a joint venture between Japanese companies ITOCHU Corporation and Osaka Gas, to accelerate the development of green hydrogen production and share related technology knowledge.

Everfuel, ITOCHU, and Osaka Gas plan to leverage their combined competencies and resources to develop and commercialize green hydrogen, initially targeting the German, Benelux, and Nordic countries, and over time expanding into new markets.

As part of the collaboration, the Japanese consortium committed to support a potential future Everfuel equity financing, subject to certain conditions.

In addition, HyVC ApS has agreed to acquire 13.56% of the shares outstanding in Everfuel from NEL ASA to become the second largest shareholder in Everfuel.

As disclosed, E.F. Holding Aps, Everfuel’s largest shareholder controlled by Jacob Krogsgaard, has agreed to support the nomination of a representative of the Japanese consortium to the Everfuel Board of Directors. The strategic collaboration and Board nomination are subject to certain conditions precedents, including the formal approval by Danish Authorities of the JV’s acquisition of the Everfuel shares from NEL.

Conditions precedents for the initial contribution to future Everfuel equity financing include, among other things, commercial commissioning of HySynergy 1. The consortium may participate as a cornerstone investor in one or more private placements in Everfuel A/S in the coming 36 months, contributing a total of up to €20 million as initial funding on the same terms and conditions as other investors.

HySynergy 1 is a 20 MW green hydrogen production plant in Fredericia, Denmark, acquired in late September 2023 by Everfuel’s joint venture with Hy24 as the first investment under the €200 million framework. The plant is expected to be commissioned in the first quarter of 2024.

Jacob Krogsgaard, Founder and CEO of Everfuel, said: “We look forward to collaborating closely with ITOCHU and Osaka Gas on commercialising green hydrogen at scale in Europe. They bring a wealth of experience within development of complex energy and process facilities as well as deep understanding of energy markets which is highly complementary to our business. Their investment in Everfuel and commitment to support future long-term growth is a validation of our strategy and reflects a strong shared ambition of decarbonising industry and transport.”