HTEC Hydrogen Technology & Energy Corporation (“HTEC” or the “Company”) has announced the completion of a $217 million investment in the Company by Chart Industries, Inc. and I Squared Capital. The investment will accelerate HTEC’s efforts to develop low carbon hydrogen solutions to meet net-zero goals, and signals growing international confidence in Canada’s hydrogen sector.
Chart is a leading global manufacturer of liquefaction and cryogenic equipment serving multiple applications in the energy and industrial gas end markets, including hydrogen. I Squared Capital is an independent global infrastructure investment manager focusing on clean energy, utilities, telecom and transport in the Americas, Europe, and Asia.
The investment was structured as a private placement of HTEC shares to Chart and I Squared, coupled with a secondary purchase of HTEC shares from existing HTEC shareholders by I Squared, providing significant new cash to HTEC’s balance sheet and partial liquidity to many HTEC shareholders. This investment expands Chart’s ownership of HTEC from 15.6 percent to 25 percent and provides I Squared a 35 percent holding; HTEC’s original shareholders and employees will retain a 40% ownership in the Company. The majority of directors of HTEC remain independent of Chart and I Squared, and the Company will remain headquartered in British Columbia.
“This additional vote of confidence from Chart and new investment from I Squared Capital gives HTEC the funding and partnerships necessary to accelerate our development of low carbon hydrogen solutions, which are crucial to rapidly hit global net-zero targets,” stated Colin Armstrong, HTEC’s President and CEO. “We are pleased to be working very closely with both organisations.”
“Our increased investment in HTEC and partnership with I Squared is highly strategic. It capitalizes HTEC well to address near term opportunities where Chart can benefit as a core supply partner, while also providing flexibility to further consolidate our ownership position in a high-growth hydrogen business with significant Canadian presence and customer base,” added Jill Evanko, Chart’s CEO and President. “Canada is a high growth market for hydrogen, given the government’s commitments to the clean energy transition, with the hydrogen sector being a meaningful part of that commitment.”
“I Squared Capital has tracked the growth of hydrogen in North America for some time and is excited to partner with two best-of-breed companies in HTEC and Chart in a sector that is so vital for the energy transition revolution,” said Thomas Lefebvre, Partner at I Squared Capital.
Fort Capital Partners acted as financial advisor to HTEC on the transaction, and Blake, Cassels & Graydon LLP served as legal counsel to the Company.