Canada Pension Plan Investment Board (CPP Investments) and H₂ project developer Power2X announced a long-term investment partnership aimed at advancing Power2X’s role in the global clean energy transition.

The partnership plans to invest an initial €130 MM to accelerate the growth of Power2X as a development platform and fund green molecule projects. The investment supports Power2X’s mission to become a long-term developer, owner and operator of next-generation energy assets with a focus on green H₂ and other clean molecules such as green methanol and ammonia.

Bruce Hogg, Managing Director, Head of Sustainable Energies, CPP Investments, said, “Investing in Power2X is fully aligned with our ambition to play a leading role in the energy transition. The need for industrial decarbonization is increasing rapidly, and green molecules have a vital role to play in meeting these demands, whether to create alternative fuels, H₂ or renewable feedstocks such as green ammonia. With Power2X’s development capabilities and CPP Investments’ flexible capital and sustainable energies expertise, this partnership enables us to invest in next-generation energy assets at an industrial scale with long-term business partners.”

Power2X develops large-scale new energy assets and infrastructure focusing on decarbonizing industrial value chains and heavy transport in collaboration with industrial companies around the world. The company is focused on clean H₂, ammonia and methanol, with a diverse portfolio of projects that are initially prioritizing European demand. Under the terms of the deal, CPP Investments will acquire a majority interest in Power2X.

Occo Roelofsen, CEO, Power2X, said, “In 2020, we founded Power2X to have a lasting impact on world’s energy transition, by focusing on green and clean molecules. Working with CPP Investments will enable us to accelerate our ambition to become a leader in green molecules, and, in doing so, continue on our journey as a long-term and serious player in this critical arena of global sustainability. Announcing this partnership with CPP Investments today shows how far our team have come in a very short time. We are actively participating in H₂ projects, such as ErasmoPower2X, a €1-B solar and H₂ plant and MadoquaPower2X, a €1-B industrial-scale H₂ and green ammonia project.”

The term green molecules refer to the application of green H₂ and its derivatives, including green ammonia and green methanol, to decarbonize non-power, hard-to-abate industrial activities. Notably, these green molecules can act as direct replacements for process feedstocks or transportation and heating fuels.