Hydrogen Capital Growth (HGEN) Status Update summary

Financial performance and portfolio update

• NAV per share at 30 September 2024 was 100.81p, down 2.7% from June 2024, with total NAV at £130 million; decline driven by FX, fund costs, and portfolio valuation changes.

• Private portfolio companies generated £75 million in trailing 12-month revenue, up 19% year-on-year, reflecting strong order books and capacity build-out.

• Cash and listed hydrogen company holdings doubled to £4 million by quarter-end, supporting investment commitments and working capital for at least 12 months.

• Divestment of Gen2 Energy for approximately £3 million freed up capital, removed the smallest private investment, and validated NAV valuations.

• Portfolio fair value gain on cost was £19.5 million, with cash and equivalents up 111.8% from June 2024.

Portfolio composition and strategy

• Portfolio is highly concentrated, with 99% in private hydrogen businesses diversified by theme and geography, and clear exit strategies via IPO or trade sale.

• Major holdings include Sunfire (25% of NAV), HiiROC (19%), Elcogen (18%), Strohm (10%), and Cranfield Aerospace Solutions (9%).

• Investments span hydrogen production, applications, supply chain, and storage/distribution, with significant exposure in Germany, the UK, Scandinavia, and the Netherlands.

• Co-investment alongside blue-chip industrials and funds, including Amazon, INEOS, Hyundai, and Centrica, enhances portfolio strength and market reach.

• Focus on revenue-generating equipment suppliers and distinctive project developers, targeting a 10-15% NAV return (not a profit forecast).

Key portfolio developments and news flow

• Sunfire, 25% of NAV, secured a major 100MW electrolyser contract with RWE and increased production capacity to 1GW/year.

• HiiROC, 19% of NAV, advanced zero-emission hydrogen technology, received US investment, and continued a hydrogen blending trial with Centrica.

• Strohm, 10% of NAV, completed a €30 million funding round, won its largest-ever commercial contract with TotalEnergies, and entered the ultra-deepwater and CCS markets.

• Elcogen, 18% of NAV, partnered with AVL List to develop solid oxide electrolyser modules for MW-scale hydrogen production.

• Cranfield Aerospace Solutions, 9% of NAV, partnered with Evia Aero for airport infrastructure and released a report on regional air mobility.