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Advising H2APEX on CIP’s majority investment in Lubmin hydrogen project

Advising H2APEX on CIP’s majority investment in Lubmin hydrogen project
A&O Shearman has advised H2APEX Group SCA (H2APEX) in connection with Copenhagen Infrastructure Partners’ (CIP) acquisition of a 70% majority stake in the first phase of H2APEX’s IPCEI-funded green hydrogen project in Lubmin. CIP, one of the world’s leading energy infrastructure investment firms, is participating as a strategic investor through its Energy Transition Fund (CI ETF I).

Under the contractual agreement, the pre-financing of the European Union (EU) IPCEI funding of EUR167 million as well as the provision of additional required capital is secured. CIP will initially invest EUR15 million in the project phase up to the final investment decision (FID). The parties subsequently intend to jointly finance the total project volume, amounting to several hundred million euros, up to commissioning, provided that the FID decision is made by the partners. Construction of the funded project is expected to be completed in 2028. The first phase is planned to produce up to 10,000 tons of green hydrogen per year, corresponding to a capacity of 100 MW. Off-take for the first phase has already been secured through a preliminary agreement.

The Lubmin site, located near the Baltic Sea, is considered one of the most promising locations for hydrogen production in the EU. H2APEX has already secured key assets, including the potential access to offshore wind farms for sustainably generated energy for the production of green hydrogen and the ability to feed into the planned hydrogen transmission network. The green hydrogen produced will be transported from northern to southern Germany via the associated Flow pipeline, which is expected to go into operation soon. This feed-in also enables the interconnection of further IPCEI-funded projects along the hydrogen value chain, making a significant contribution to strengthening the European hydrogen economy and thus to contribute a significant component within the framework of the energy transition.

Ahead of the next construction phase, scheduled for 2026, the focus will be on reserving and ordering components and continuing the permitting process. In the long term, H2APEX plans to expand total capacity at the Lubmin site to more than 1,000 MW.

The A&O Shearman team was led by partner Dr. Christian Eichner and counsel Kyrill Chilevych (both Düsseldorf), and also included senior associate Daniel Wendler (Hamburg), as well as associates Lasse Ostholt (Düsseldorf), and Johann von Pachelbel (Hamburg, all Corporate/M&A).

In addition, the team comprised partners Florian Lechner (Tax, Frankfurt), Dr. Christian Hilmes (Real Estate), Dr. Hauke Sattler (Restructuring, both Hamburg), and Peter Wehner (Employment / Pensions, Frankfurt), counsel Dr. Ioannis Thanos (Antitrust), senior associates Eva Hohmann and Dr. Jan Frederik C. Holst (both Corporate/M&A, all Hamburg), as well as associates Damian Snop (Tax, Frankfurt), Katharina Hillmer (Antitrust), Jakob Schultehinrichs (Corporate/M&A, both Hamburg) and Aleksander Braksator (Antitrust, Warsaw).

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