It has been announced that Hygen Energy is due to receive ‘multi-million-pound funding’ from HSBC UK. The purpose of this funding will be to enable Hygen Energy to expand capacity at their green hydrogen production site, which is located in the UK, specifically Birmingham.

Right now, from Hygen’s refuelling unit at their Tyseley site, Hygen is able to provide hydrogen to major consumers including, National Express and JCB, which helps these companies with their decarbonisation initiatives.

Once the HSBC Equipment Finance has been provided, Hygen will then start receiving backing, which will be given in the form of asset finance lent to advance its facility, which is based at the Tyseley Energy Park (TEP). The other purpose of this backing is to enable the company to develop other sites throughout the UK as well.

So far, TEP in Birmingham has become a key hub for hydrogen-related activities, this can be seen from the projects Hygen has completed such as commissioning a green hydrogen refuelling station at this site in 2021. Plus, Ammogen also hosted an ammonia-to-hydrogen project within the site as well.

Hygen CEO, Kevin Selleslags, commented, “HSBC UK’s confidence in our business, and the potential of hydrogen as a low-carbon energy source, is truly encouraging. Securing bank funding also sends an important signal to the market about the opportunities for this technology.”

Representing HSBC UK’s first entry into the hydrogen sector, Relationship Director from HSBC UK, Akhil Shah, mentioned, “This deal underlines HSBC UK’s commitment to this emerging sector, supporting the development of new technologies essential for the transition to a Net Zero economy. The green hydrogen industry is still in its early stages of development and requires better access to both equity and debt funding to truly take off.”