Canada’s biggest pension fund, CPP Investments, has made its first bet on green hydrogen playing a growing role in cutting emissions, with a €130-million ($143-million) investment and the purchase of a majority stake in a three-year-old Dutch firm.
CPPI’s investment is mostly in the form of capital that Amsterdam-based Power2X can use to develop new projects in Europe that seek to decarbonize hard-to-abate industrial assets by adopting green hydrogen.
The size of CPPI’s equity investment and the valuation given to Power2X, which is co-developing two projects and advising on others, was not disclosed.
Green hydrogen backers, including governments, hope using renewable power to split water molecules can cut pollution by replacing ‘grey hydrogen’ – or its derivatives methanol and ammonia – relied on by industries including refining, heavy transport, steel and fertilizers.
“Europe is generally seen as the leading industrial market or consumer for these green molecules. So we thought it was important to start with the consumers or the users of these molecules, and then build up from there,” CPPI’s Head of Sustainable Energies, Bruce Hogg, told Reuters.
Investor interest in Europe for tackling fossil fuel demand rather than just supply is growing, aided by the EU’s green industrial plan, which has pledged subsidies and faster permits to ensure the region keeps pace in the green tech race.
CPPI has already been providing Power2X with project-specific finance but Hogg said the new investment would offer “the flexibility of capital to allocate to the best projects.”
Power2X’s current projects include a green hydrogen and ammonia development in Portugal and a solar power and green hydrogen project in Spain.
“European industry is already using enormous amounts of hydrogen. We don’t necessarily need to invent a new industry to make an impact,” said founder Occo Roelofsen, a former McKinsey consultant, who owns the remainder of Power2X alongside other senior executives. “The initial focus is actually on replacing the grey with the green.”
Expanding green hydrogen production will require more renewable power generation, and some questions remain over its potential use cases versus other low-emission technologies.
CPPI manages C$570-billion ($429-billion) in assets for more than 21 million Canadians.
Other Canadian funds have also been backing Europe’s cleaner energy drive. Last month Canada’s Investment Management Corporation of Ontario announced a $400-million investment in Sweden’s battery producer Northvolt.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
