Context
Created in 2012, HDF Energy is a global pioneer in hydrogen power. The company develops high-capacity hydrogen power plants that provide continuous or on-demand electricity from renewable energy sources, combined with high-power fuel cells supplied by the company.
Renewable energy sources such as solar and wind are inherently intermittent. They have experienced strong growth over the last decade and although they still represent a minor contribution in the total energy mix (c.10% worldwide, c.35% in the EU*), they are already causing serious local intermittency issues to grid operators. With a massive roll-out of renewables expected in the coming years, this issue is expected to grow even more dramatically.
As the only long-term carbon-free mid to high-capacity storage solution, hydrogen is the most promising solution for solving this intermittency issue and thus enabling the massive roll-out of renewables. This represents a huge market opportunity for HDF Energy, whose mission is to use hydrogen technology to provide non-intermittent competitive renewable electricity to grid operators.
HDF Energy is currently developing the largest hydrogen power-to-power project in the world: the CEOG project in French Guyana. This project is supported by leading financial investors including Meridiam and SARA as well as relevant public authorities, namely the French government and local authorities.
HDF Energy sought to raise additional capital and develop new strategic partnerships to fulfill its ambition to become a global leader in hydrogen power and the enabler of the massive deployment of non-intermittent renewable energies worldwide.
The offering proceeds will be principally used to (i) accelerate development capabilities; (ii) increase project equity financing; and (iii) develop manufacturing capabilities and reinforce HDF Energy’s technological edge in multi-MW fuel cells
Note: (*) Including hydropower
About HDF Energy
Created in 2012 and located in Bordeaux, HDF Energy is a global pioneer in hydrogen energy. HDF Energy develops high-capacity hydrogen power plants and is active, through dedicated project companies, in their operation. These plants will provide continuous or on-demand electricity from renewable energy sources (wind or solar), combined with high power fuel cells supplied by HDF Energy. HDF Energy develops two types of Hydrogen-Power plants:
o Renewstable® (POWER TO POWER): Multi-megawatt power plants, producing stable electricity, composed of an intermittent renewable source and on-site hydrogen energy storage
o HyPower® (GAS TO POWER): Multi-megawatt power plants producing electricity on demand from green hydrogen from transportation networks.
HDF Energy has integrated key fuel-cell know-how under a memorandum of understanding with Ballard (seven-year exclusive licence agreement) and has developed the world’s first mass production plant for high-power fuel cells for energy, which will be commissioned in France (Bordeaux Metropole) in 2023. Through this activity, HDF Energy will also serve the maritime and data centre markets.
HDF Energy has positioned itself as a powerful accelerator of the energy transition by offering nonintermittent, grid-friendly and on-demand renewable power.
About Rubis
Rubis, a company listed on Euronext Paris with market capitalization of nearly EUR 4 billion at the end of 2020 (SBF 120), specializes in the distribution of energy and bitumen, from supply to the end customer, and, through its Rubis Terminal JV, in bulk liquid storage.
Rubis has a strong position in the distribution of LPG, considered in emerging markets as a transitional energy, and bitumen, focusing on infrastructure projects in West Africa.
With revenue of EUR 3.9 billion and distributed volumes of 5 million m3, the Group is recognized in the market for its expertise and the quality of its services. Thanks to its international development strategy, Rubis now occupies strong market positions in diversified products and segments in 41 countries in three regions: Africa/Indian Ocean, the Caribbean and Europe.
Over the past 10 years, Rubis has achieved 9% compound annual growth in earnings per share and dividend per share.
About Teréga
A true accelerator of the energy transition, for more than 75 years Teréga has deployed its exceptional expertise in the development of gas transport and storage infrastructures and now designs innovative solutions to overcome the major energy challenges facing France and Europe. SNAM Spa, GIC, EDF invest and Predica are the shareholders of the Teréga Group.
Deal Team
Should you want to know more about this transaction, you can contact one of the team members above
Bryan, Garnier & Co acts as Sole Financial Strategic Advisor, Sole Global Coordinator and Joint Bookrunner to HDF Energy on its EUR 132.2 million Initial Public Offering including Strategic Investments from Rubis and Teréga
Bryan, Garnier & Co acted as Sole Financial Strategic Advisor, Sole Global Coordinator and Joint Bookrunner on HDF Energy’s EUR 132.2m IPO (which may be increased to EUR 152m upon full exercise of the Over-Allotment Option) on the Euronext Paris regulated market, including EUR 60m investments from new strategic partners Rubis and Teréga. Bryan, Garnier & Co led public and strategic tracks in parallel, leading to c. EUR 80m of cornerstone commitments including EUR 50m from Rubis, EUR 10m from Teréga, EUR 10m from Caisse des Dépots Croissance and EUR 5m from Heights Capital Management.
Bryan, Garnier & Co conducted an exhaustive worldwide search for the best strategic partners for HDF Energy to enable the massive roll-out of its Renewstable® and HyPower® projects. On the back of a competitive strategic process, HDF Energy selected Rubis, a French-based storage provider, distributer and seller of petroleum, liquefied petroleum gas, food and chemicals; and Teréga, an operator of gas transport and storage infrastructure in France.
Memoranda of understanding were concurrently signed with the two strategic investors, setting up collaboration frameworks for the global development of Renewstable® and HyPower® projects.
Bryan, Garnier & Co managed to secure the IPO success as the c. EUR 80m commitments accounting to more than the 75% minimum subscription percentage required by French law. Despite a heavy IPO pipeline, resulting in investors being highly selective, we succeeded in covering the books and reaching the full deal size on the fourth day of the roadshow.
Investor demand during book-building was driven by high quality long-only and cleantech specialists.
The book-building dynamic and retail demand enabled the offer to be priced at the high end of the range for the full deal size (base + extension + greenshoe).
This transaction represents the second-largest cleantech IPO on the Euronext Paris markets in the past 10 years. Following the EUR 180m follow-on offering for McPhy in 2020, this is another landmark demonstration of Bryan, Garnier & Co’s deep understanding of the global energy transition/sustainability environment and its unique ability to attract international strategic/corporate and institutional capital for leading European cleantech scale-ups.
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