CWP Global and Copenhagen Infrastructure Partners (CIP) announced the recent completion of CIP’s strategic investment in CWP’s development portfolio of ultra-large-scale green H2 hubs, including projects across Africa, Australia and the Americas.
Under the deal, CIP, through its Energy Transition Fund I, has acquired a 26.67% stake in a development platform within CWP’s green H2 business, thus seizing the opportunity to invest in the latter’s pipeline of green H2 hubs under development globally.
The investment brings together CWP’s leading green H2 team, built off the back of a two-decade track record in developing and operating utility-scale renewables projects, and CIP’s expertise in financing and developing large-scale green transition infrastructure. CIP’s backing represents a significant vote of confidence in the emerging green H2 sector from one of the world’s largest renewable energy infrastructure investors.
There is growing market sentiment that significant and scalable demand for green H2 is set to take hold in the second half of this decade. Peer-reviewed scenarios for achieving net-zero GHG emissions by 2050 or earlier—including those from the IPCC, IEA, IRENA and the Energy Transitions Commission, among others—make clear that alongside widespread electrification of global energy demand, the production and use of green H2 and derivatives is a critical tool to decarbonize a variety of energy-intensive but hard-to-abate sectors, such as mining, steel and fertilizer production, as well as long-range transport, including maritime shipping.
According to the IEA-led Breakthrough Agenda Report (2022), investment in production of renewable and low-carbon H2 must scale up significantly to increase supply from less than 1 MMt in 2020 to 140-155 MMt by 2030 to align with emissions trajectories in pursuit of the Paris Agreement’s temperature goals. Against this backdrop, CIP’s investment in CWP’s portfolio of green H2 hubs is a major step in the right direction.
Alex Hewitt, CEO of CWP Global, said, “We’re thrilled to welcome CIP to the CWP family, a new partnership that could not have come at a more important time. The race to net zero is on, and green H2 at scale will be a critical pillar for global decarbonization, perhaps meeting one-fifth of global energy demand by 2050.”
“This CWP-CIP partnership is built around a remarkable alignment of values and a shared vision of the scale and urgency of the energy transition. We look forward to working with CIP to build value for the planet and future generations, and new opportunities for local communities and economies, including in the developing world.”
Felix Pahl, Partner at Copenhagen Infrastructure Partners, said, “Achieving decarbonization targets requires green H2 and green ammonia to be produced at scale. Through this investment, CIP’s Energy Transition Fund now further expands its participation in the development of gigawatt scale PtX developments. CWP has a proven track record in delivering onshore renewables and has already built a strong pipeline of PtX development projects.