Hygen partners with HSBC UK on multi-million hydrogen project

Hygen Energy has acquired HSBC UK funding to increase capacity at its green hydrogen production site in the UK.

UK based hydrogen production developer Hygen Energy has announced a multi-million partnership with HSBC UK to expand capacity and develop its major sites across the UK.

The partnership was set with aims of increasing green hydrogen production while promoting decarbonisation efforts and developing emerging technologies.

According to Hygen, the deal features HSBC equipment finance in the form of asset finance against the Hygen site at the Tyseley Energy Park.

Kevin Selleslags, Hygen Energy CEO, emphasised how the company wants to expand its hydrogen production across the UK.

Selleslags said: “We are committed to leading the way in developing and delivering more low-carbon hydrogen projects across the UK so HSBC UK’s confidence in our business, and the potential of hydrogen as a low-carbon energy source, is truly encouraging. Securing this bank funding also sends an important signal to the market about the opportunities for this technology.”

According to the HSBC Energy Policy, the multinational bank  has established ambitions of providing $750bn-$1tn in sustainable financing and investment by 2030.

HSBC stated that this will enable support to “critical areas” like clean energy, electrification, energy storage and the decarbonisation of nascent technologies like clean hydrogen.

Supporting the transition to renewable fuels, HSBC further stated in their energy policy that they will no longer provide “direct upstream finance (through lending or capital markets) for the specific purposes of new oil and gas fields and related infrastructure”.

Akhil Shah, Relationship Director from HSBC UK, added: “The green hydrogen industry is still in its early stages of development and requires better access to both equity and debt funding to truly take off.

“This deal underlines HSBC UK commitment to this emerging sector, supporting the development of new technologies essential for the transition to a net-zero economy.”