CPP Investments taps Europe’s green hydrogen hopes with Dutch investment

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CPPI’s investment is mostly in the form of capital that Power2X can use to develop new projects in Europe that seek to decarbonize hard-to-abate industrial assets by adopting green hydrogen

Canada’s biggest pension fund, CPP Investments, has made its first bet on green hydrogen playing a growing role in cutting emissions, with a €130-million investment and the purchase of a majority stake in a three-year-old Dutch firm.

The size of CPPI’s equity investment and the valuation given to Power2X, which is co-developing two projects and advising on others, was not disclosed. “Europe is generally seen as the leading industrial market or consumer for these green molecules. So we thought it was important to start with the consumers or the users of these molecules, and then build up from there,” CPPI’s Head of Sustainable Energies, Bruce Hogg, told Reuters.

CPPI has already been providing Power2X with project-specific finance but Hogg said the new investment would offer “the flexibility of capital to allocate to the best projects.”

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