Fossil Fuel Pillar Baker Hughes Joins Plug Power on Green Hydrogen Fund

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A trio of companies, including fossil fuel entity Baker Hughes Co., plan to back a new fund focused on investing in hydrogen technology, just the latest example of growing investment interest tied to alternative energy sources. Plug Power PLUG, -1.62%, Chart Industries, Inc. GTLS, + 2.28% and Baker Hughes BKR, + 0.56% are forming the FiveT Hydrogen Fund, an exclusively clean hydrogen private infrastructure fund dedicated to delivering hydrogen infrastructure projects clean on scale, the companies said.

Plug Power, a hydrogen fuel cell manufacturer, intends to commit € 160 million ($ 200 million). Plug Power counts Amazon AMZN, + 2.16%, BMW BMW, + 0.23%, The Southern Company SO, + 0.27%, Carrefour CA, -1.26% and Walmart WMT, -0.15% among its fuel cell customers, Chart Industries , which has more than 50 years of manufacturing hydrogen equipment, and Baker Hughes, an oilfield services company, intend to commit € 50 million ($ 60 million) to the FiveT fund. Read: Green Hydrogen Opens Doors to Increased Demand for Platinum Hydrogen is not a new source of energy, but the expansion of “green” versions of the technology has caught the attention of investors. The drive to create the fund is based on a broader agreement that the hydrogen economy needs to grow rapidly to be successful and become a key part of the solution to build a net zero global economy. The United States, for example, has committed to zero net emissions by 2050, a goal roughly in line with most industrialized nations as they move forward to limit global warming to less than 2 degrees Celsius above pre-industrial levels. Read: Largest US Oil Lobby Supports Carbon Pricing Instead of Stronger Regulation Euro-denominated fund, offered only to qualified and verified investors, aims to raise a total of 1 billion euros from financial and industrial investors. Barron’s: Asia is growing in hydrogen energy. What does that mean for electric vehicles. The fund is led by Pierre Etienne Franc, who was recently Vice President of Hydrogen Energy for Air Liquide and co-secretary of the Hydrogen Council. Read: Green hydrogen is a ‘jump ball’ in Biden‘s climate plan: Kerry “Plug Power established the first commercial fuel cell market and is now building the first green hydrogen generation network in the United States”, said Andy Marsh, CEO of Plug Energía. “We believe this fund will help accelerate the construction of hydrogen infrastructure globally, which will support the rapid deployment of fuel cell applications.” Plug Power’s shares have soared more than 900% in the last year and are up about 4% in 2021 to date. The company fell behind with regulatory filings last month after spotting accounting errors in recent financial statements. The traditional energy space has partly diversified towards renewable energies. “Driving the energy transition requires innovative models of collaboration and investment, and new energy frontiers like hydrogen will progress faster when key players come together,” said Lorenzo Simonelli, Baker Hughes President and CEO. Baker Hughes shares are up 109% over the past year and 4.2% so far in 2021. Chart Industries is up 446% last year and remains at a solid 23% to start 2021.