Equity and growth investment opportunities in Europe’s green hydrogen economy will be targeted.
Investments will not be made in start-ups, but companies which have “proven business cases and have secured EU or state funding,” according to a statement.
These include green and turquoise hydrogen technologies and hydrogen valley projects in Germany, the Netherlands and Estonia. The portfolio is classed as an Article 9 investment (SFDR).
One of Orestes’ portfolio companies at the demand/consumer end of the hydrogen economy is AUVE Tech, a company building autonomous, hydrogen powered vehicles (pictured).
The strategy will be focused on maximising equity IRR with the portfolio targeting a return of 15% a year with a planned exit in 2030.
The offering will be listed on the Frankfurt Stock Exchange, offering investors secondary market alongside potentially high returns possible with emerging technologies.
The new portfolio addresses the increased financing requirements for a transition to Net Zero. Hydrogen is widely seen as the backbone of a Net Zero world and in Europe there has been significant financing for clean energy transition projects, including the EU and Norway committing €5.4bn to support Important Projects of Common European Interest (IPCEIs).
Orestes’ portfolio advisory comes from recognised leaders – Natural Power, a world-leading renewables consultancy and Marek Aliksoo, member of the Estonian Hydrogen Association Board and European Clean Hydrogen Alliance. The portfolio will be issued by Sustainable Capital.
Marek Aliksoo, member of the Estonian Hydrogen Association Board, said, “As Europe pushes for hydrogen to play a critical role in its long-term energy independence, support is required from both government funding and capital markets to ensure the green hydrogen economy’s growth, and scalability.”
Dr. Scott Levy, founder of Sustainable Capital, said: “To realise the potential contribution of green hydrogen to meet our energy needs we must have accessible ways of turning potential into action and real-world gains. Orestes aims to provide this exact pathway.”
Investments of at least $4-$6trn a year are required for the global economy to reach Net Zero – on top of the $4trn a year needed to expand renewable energy, according to the World Economic Forum (WEF).
The US Agency for International Development (USAID) launched a new $50m development fund aimed at boosting the private sector’s contribution to global development. Samantha Power, USAID Administrator, announced the fund at WEF’s Annual Meeting 2023 in Davos last week.
Unlocking private sector contributions has long been a challenge for development agencies and non-government organisations. One of the main issues, experts say, is the perceived risk of investing in distressed regions of the world.
“The problem is not financial resources, the problem is where we house them and how we invest in them,” Vera Songwe, the Chair of the Board of the Liquidity and Sustainability Facility, said during the Annual Meeting. “On the [African] continent we have quite a number of countries that have the right policy environment and need liquidity.”