Businessman Jo Bamford has joined forces with multi-family office Vedra Partners to launch hydrogen investment fund HYCAP.
The fund, which has its sights set on raising £1 billion, currently stands at £200m after the first round of investment.
It will invest in UK businesses with a focus on speeding up green hydrogen production and supply and contributing to the Government’s Net Zero targets.
Bamford said: “With the Government’s relentless pursuit of Net Zero targets and the publication of the damning IPCC report, it is our belief that hydrogen holds the key to reducing emissions – and there is a growing sense of urgency to act now.
“The UK has missed the boat on batteries, a sector dominated by China and the Far East, but we can be global leaders in the production and supply of hydrogen – an economy said to be worth $2.5 trillion in revenues by 2050.”
Bamford said he and his team had already identified more than 40 firms in the hydrogen space for possible investment.
“We have also discovered that investors around the world match the ambitions of global governments in wanting free-focused funds which have a positive impact on climate change,” he added.
Bamford cited a number of drivers behind the renewed interest in hydrogen, including 70% of global GDP linked to hydrogen country roadmaps, the UK Government’s pledge to have 5GW of low-carbon hydrogen production by 2030 and a five-fold increase in membership of the Hydrogen Council since 2017.
Max Gottschalk, founder of Vedra Partners, commented: “The fund will be investing across the entire value chain, focusing on production, manufacture and supply, in order to put the UK firmly on the map when it comes to hydrogen.
“By striking meaningful commercial partnerships and developing intelligent go-to-market strategies it is clear HyCap’s maiden fund can add strategic, operational and financial value to the ecosystem while creating entrepreneurial growth businesses.”