H2B2 Electrolysis Technologies, a Spain-based electrolyzer manufacturer and green hydrogen project developer, has reached a $750 million business combination deal with RMG Acquisition Corp III, a special acquisition company (SPAC).

The transaction is conditioned upon the completion of a capital raise of at least $40 million with a potential horizon of $125 million, the completion of a cashless warrant exchange by RMG III, and approval by RMG’s shareholders.

The proposed transaction is expected to be closed in the second half of 2023.

“With the operations underway, we seek to strengthen the international business we are developing and our operational capacity worldwide. The business and technological development of H2B2 will be bolstered because of this transaction with RMG III, thus making the energy vector of hydrogen key to decarbonization,” said Anselmo Andrade, CEO of H2B2.

The proposed business combination and the capital raise transaction and/or PIPE transaction are expected to fund H2B2’s execution on its near-term project pipeline and allow the company to better scale its operations commensurate to expected demand growth.

Natixis Partners Iberia and BCW Securities are leading the capital raise transaction.

H2B2, primarily focused on the U.S. and European markets, is also expanding in Latin America and Asia-Pacific and has secured involvement in multiple strategic projects.

H2B2 has been chosen to participate in the Important Projects of Common European Interest program, IPCEI Hy2Tech, which has authorized the company to obtain up to €25 million (~$27.2 million). This program supports H2B2’s development and manufacturing of both stacks and electrolyzers.

H2B2 has a robust and diversified pipeline of over 260 projects, with an expected aggregate capacity of approximately 5.6 GW of identified potential projects. H2B2 works with significant customers such as Ecopetrol, GP Joule, Cepsa, and Tecnicas Reunidas.

In February, the European Commission proposed a detailed new framework for green hydrogen producers within the EU and from other countries exporting to the region to ensure it is produced using renewable electricity.

Europe and Japan accounted for 28% and 24% of global patents for hydrogen production technologies between 2011 and 2020, according to the International Energy Agency.