Serbia-headquartered renewable energy developer CWP Global and Copenhagen Infrastructure Partners (CIP) have successfully concluded a strategic investment deal under which CIP, through its Energy Transition Fund I, has acquired a 26.67% stake in CWP’s development platform within the green hydrogen sector.

This investment presents an opportunity for CIP to participate in CWP’s globally expanding ultra-large-scale green hydrogen pipeline with 220 GW capacity across Africa, Australia, and the Americas.

With their combined expertise, resources, and shared vision, the partners expect the development of ultra-large-scale green hydrogen hubs will accelerate, playing a pivotal role in paving the way for a sustainable, low-carbon future.

The companies did not disclose the financial details of the deal.

The company said peer-reviewed scenarios from esteemed organizations like the Intergovernmental Panel on Climate Change IPCC, International Energy Agency (IEA), International Renewable Energy Agency (IRENA), and the Energy Transitions Commission reinforce the idea that alongside the global electrification of energy demand, the use of green hydrogen and its derivatives is crucial in reducing carbon emissions across energy-intensive industries.

However, sectors such as mining, steel production, fertilizer manufacturing, and long-range transport, including maritime shipping, pose significant challenges in terms of decarbonization.

These scenarios highlight the potential of green hydrogen to address these challenges and facilitate the transition to a more sustainable future.

In this context, CIP believes its investment in CWP’s portfolio of green hydrogen hubs represents a major step in the right direction.

Alex Hewitt, CEO of CWP Global, said, “The race to net zero is on, and green hydrogen at scale will be a critical pillar for global decarbonization, perhaps meeting one-fifth of global energy demand by 2050.”

Hewitt emphasized the alignment of values and shared vision between the two companies and highlighted their commitment to building value for the planet and future generations and creating new opportunities for local communities and economies, particularly in the developing world.

Felix Pahl, Partner at CIP, emphasized the significance of producing green hydrogen and green ammonia at scale to achieve decarbonization targets.

Pahl expressed confidence in CWP’s ability to contribute significantly to decarbonizing hard-to-abate sectors, citing the company’s strong management team and established regional footprints in Australia, Africa, and Latin America.

In India, the Ministry of Steel, under the recently approved National Green Hydrogen Mission, has invited research and development (R&D) proposals to establish pilot projects focused on the production and utilization of green hydrogen within the iron and steel industry.

In March 2023, CIP, on behalf of its New Markets Fund I, partnered with Viviid Renewables to develop more than 1.8 GW of greenfield renewable energy projects in India.