UK startup targets rollout of 50 green hydrogen-producing vessels
Merchant bank Commenda Capital Partners will support UK-based renewable energy startup Drift Energy in financing and deploying its planned fleet of 50 wind-powered hydrogen production vessels.
IMAGE: Concept of Drift Energy’s hydrogen producing vessel design. RINA
The companies have signed an agreement covering the financing and execution of the vessel programme, which Drift Energy estimates will require around $500 million in project-level investment.
The partnership is intended to support Drift Energy's plans to commercialise at least 50 hydrogen production vessels following class approval of the design. In May, classification society RINA granted approval in principle for the vessel concept.
Drift Energy has designed a sailing vessel equipped with hydrokinetic turbines beneath the hull to generate electricity by harnessing the kinetic energy of flowing water. The electricity generated will be used to produce green hydrogen onboard via electrolysis.
The fuel will then be stored onboard for delivery to ports, islands and coastal users.
The vessels will be capable of bunkering other ships in port or at anchor, according to Drift Energy. The company is also exploring the option of ship-to-ship bunkering.
The financing framework demonstrates that the concept can be financed and scaled commercially, said Ben Medland, chief executive of Drift Energy.
This concept represents a new asset class, but it should be financed using established shipping and capital market structures, Ulrik Uhrenfeldt Andersen, chief executive at Commenda Capital Partners added.
“Turning that [concept] into commercial deployment requires more than technology. It requires structuring this new asset class in a way that maritime capital can underwrite and own. This is an innovative concept, but these are ships. They carry maritime risk and need to be financed accordingly,” Andersen said.
By Konica Bhatt
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