HydrogenOne Capital Growth (HGEN ) shares jumped after its portfolio company Elcogen received a €55m (£47m) cash injection from US energy company Baker Hughes.

Estonian clean energy and hydrogen producer Elcogen, which is 18.4% of the portfolio’s net asset value (NAV), has received a ‘strategic investment’ from Texas-based Baker Hughes, one of the world’s largest oil field services providers.

The investment is part of an overall funding package totalling €140m that will be used to ‘scale up Elcogen’s leading solid oxide cell technology for green hydrogen’, HGEN said on Wednesday.

Shares in HGEN pushed 5.7% higher to 44p, helping the £133m portfolio to claw back some of the steep share price losses that have pushed the trust to a 59% discount and reducing its market value to £53m.

The Baker Hughes investment follows a €55m investment by HD Hyundai in October, and the board said it ‘underscores both the company’s strategy of backing the leading innovators in the hydrogen industry, and the valuation of its investment in Elcogen’.

HydrogenOne, which is run by fund managers JJ Traynor and Richard Hulf, anchored Elcogen’s equity round in 2022 with an investment of €24m, and the company also has access to European Commission project grants totalling €24m, and a proposed €15m debt issue.

Elcogen has raised more than €140m since 2022 to develop and scale its solid oxide technology to develop affordable, green hydrogen, and accelerate the energy transition. It works with heavy industry to decarbonise and meet zero-targets.

‘These funds will be used to expand Elcogen’s manufacturing capacity as it continues to build a new factory facility in Tallinn, Estonia, with a manufacturing capacity of up to 360MW, to meet increasing demand for its products, as well as the needs of its continuous development program,’ said the fund.

Traynor, managing partner of HydrogenOne Capital, said the investment was ‘another important milestone for HydrogenOne’s second largest portfolio investment’.

‘Baker Hughes is a leading energy technology company, and is a further important strategic investor in Elcogen, alongside HD Hyundai,’ he said.

‘This is another powerful endorsement of Elcogen’s technology and capabilities in solid oxide supply chains.’

Elcogen chair Chris Nash said Baker Hughes becoming a strategic shareholder was a ‘significant vote of confidence in our technology from a leading technology company’.

HydrogenOne has not had an easy ride since launch in 2021, the shares plunged to a wide discount in the growth sell-off and performance is only slowly making its way back up. Over the past year the NAV has increased just 3% while the shares have fallen 11%.