Hydrogenone Capital Growth, the investment trust focused on clean hydrogen, has revealed robust performance from its underlying holdings, despite facing challenges with its share price.
According to the trust’s quarterly portfolio update released today, its net asset value (NAV) has increased by 0.6 percent since the beginning of the year and by 3.6 percent since March 2023.
Key hydrogen companies within the portfolio, including Elcogen (19.4 percent of NAV), HiiROC (15.3 percent of NAV), and Sunfire (20.9 percent of NAV), secured new strategic investments during the period. Notably, Sunfire competed for a Series E financing round exceeding €500 million.
In April, Elcogen secured additional funding from American oil company Baker Hughes, following Hydrogenone’s initial investment in 2022. This injection of capital contributed to the growth of the trust’s private investments portfolio, adding 2.1 percent per share to the NAV.
The trust’s private portfolio companies collectively generated £81 million in revenue over the past year, marking a notable 103 percent increase compared to the previous year.
Throughout the first quarter of 2024, the trust made £1.4 million in new investments, primarily comprising follow-ons in existing portfolio companies.
Despite a 5.9 percent increase in its stock price since the beginning of 2024, the trust’s shares remain down by 48 percent since its flotation in July 2021.
Hydrogenone Capital Growth currently trades at a wide 52.6 percent discount, significantly higher than the renewable energy infrastructure trust average of 23 percent. Among renewable energy infrastructure trusts, only the embattled Asian Energy Impact trust and two battery storage trusts exhibit wider discounts, which have been impacted by significant regulatory challenges.