UK Infrastructure Bank backs UK’s green hydrogen expansion with £30 million Geopura investment

UK Infrastructure Bank backs UK’s green hydrogen expansion with £30 million Geopura investment.

The UK Infrastructure Bank has committed £30million to support the expansion of UK-based green hydrogen pioneer, GeoPura, helping to accelerate the UK’s adoption of green hydrogen.

The transaction will facilitate the expansion of GeoPura’s production capacity, help to grow the specialist workforce in the UK and increase the deployment of its power generation technology.

The Bank’s commitment is part of Geopura’s latest £56 million financing round, led by a follow-on investment from Barclays Sustainable Impact Capital and supported by GeoPura’s existing investors: GM Ventures, SWEN Capital Partners, and Siemens Energy Ventures.

The financing will directly increase the manufacture and supply of GeoPura’s Hydrogen Power Units (HPUs) at its Newcastle based facility, which replace traditional diesel generators and emit zero harmful emissions. The HPUs have already been successfully supplied to a wide range of high-profile customers, including the Ministry of Defence, Balfour Beatty, National Grid and the BBC.  

In addition, GeoPura will expand its production of green hydrogen, helping to transform an old coal power station site as part of the HyMarnham Power Green Hydrogen project in the East Midlands. The scaling up of green hydrogen is vital in helping to meet net zero by reducing emissions in hard to abate sectors – such as construction – and complements renewables by providing supplementary power to the electricity grid. 

GeoPura’s HPU technology exemplifies how the transition to sustainable energy can be accelerated, even in the face of grid challenges. As electricity demand increases due to the proliferation of electric vehicles and other clean technologies, supplementary power sources such as the HPU are paramount to provide the capacity required, prevent gridlock and secure a sustainable energy future.

With hubs in Nottingham, Matlock, Sheffield and Newcastle upon Tyne in the UK, GeoPura is mass manufacturing HPUs in collaboration with partner Siemens Energy and plans to deploy a fleet of over 3,600 HPUs by 2033, providing clean, low-cost reliable power, displacing more than ten million tonnes of CO2 emissions through their operation over their life*..

John Flint, CEO at UK Infrastructure Bank, said:  

Our investment in GeoPura is another example of our problem solving in action. By removing barriers to investment in the hydrogen sector – a critical nascent market on the route to net zero – we are creating a sustainable platform from which to finance additional green hydrogen projects in the near future.

Andrew Cunningham, CEO of GeoPura, said, said:  

Having experienced the hottest year on record in 2023 with the negative impact of extreme weather events increasing globally every month, our need to combat climate change has never been more urgent.

“Now, more than ever, we need to act and provide industry with proven and effective solutions to achieve their Net Zero goals as well as allowing them to reduce their liability for destroying air quality with particulates, NOx and other harmful emissions from traditional generators. 
  
“The challenge of replacing the estimated 300billion US dollar installed base of highly polluting diesel generators over the next 10 years is significant and requires the scale and commitment that investors such as UKIB and our existing highly supportive shareholders and partners provide. We’re delighted to be taking this next step and it’s brilliant to be working together to make a real, tangible impact today by reducing filthy engine emissions, providing better air quality for us all.” 

James Ferrier, Director, Principal Investments, Barclays Sustainable Impact Capital, added:  

Scaling new climate technologies – like GeoPura’s HPUs – will be critical in decarbonising the UK economy, as sectors with no existing viable alternatives to fossil fuels look to our home-grown entrepreneurs for innovative solutions to help them cut emissions.

“GeoPura’s work is incredibly exciting in that they are helping to accelerate the UK’s adoption of green hydrogen by addressing supply and demand simultaneously, all the while building the workforce of the future. We look forward to seeing GeoPura’s growth over the coming years.” 

Gareth Davies MP, Exchequer Secretary to the Treasury, said:  

We’re backing our green industry to seize opportunities in the transition that will help grow our economy – the Bank’s first green hydrogen deal is part of that plan.

 
“From boosting green jobs to cutting emissions with their cutting-edge tech, GeoPura is helping us lead the way to a cleaner, greener UK.” 

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: 

The UK is leading the way in cutting emissions, having already slashed them by half since 1990, while also growing our economy by nearly 80%.  

“UKIB and GeoPura’s announcement is another vote of confidence in our world-leading hydrogen industry and will help deliver hydrogen power to more businesses across the UK, cutting our emissions even further.”

Building upon GeoPura’s success in the UK Government’s Net Zero Hydrogen HAR1 allocation round that will see HyMarnham Power, a 50/50 JV between GeoPura and JG Pears, transform a former coal-fired power station in the East Midlands into a clean energy hub, a portion of the investment will be dedicated to further developing hydrogen production capacity and capability. This includes investments in storage and distribution assets, crucial for managing potential supply risks associated with growth.

Barclays’ Energy Transition Group, a group within the Investment Bank of Barclays Bank PLC, acted as financial adviser and assisted GeoPura in respect of the UK Infrastructure Bank’s investment.” 

READ the latest news shaping the hydrogen market at Hydrogen Central

UK Infrastructure Bank backs UK’s green hydrogen expansion with £30 million Geopura investment. source