HydrogenOne Capital Growth (HGEN) has released its 2024 sustainability report, highlighting progress in greenhouse gas (GHG) emissions reduction and the fund’s ongoing focus on climate-aligned investing. The company, which is the first London-listed fund dedicated to clean hydrogen, continues to position itself as a key player in the energy transition.

The report shows that during 2024, HGEN deployed £116.3m into low-carbon growth investments, a modest increase from £113.7m in 2023. The company avoided over 132,800 tonnes of CO2 equivalent emissions during the financial year, up from 91,116 tonnes in 2023. Since its IPO, total avoided emissions now stand at more than 274,000 tonnes – around 576 times greater than its own operational emissions in the same period.

HGEN’s portfolio is built around the thesis that clean hydrogen has the potential to displace up to 830 million tonnes per annum of CO2 emissions currently produced by the grey hydrogen industry. The company also points to wider decarbonisation opportunities across transport, heat, and power sectors.

The fund is classified as an Article 9 vehicle under the EU Sustainable Finance Disclosure Regulation (SFDR) – the highest sustainability designation – reinforcing its environmental credentials.

Operational emissions fell to 230t CO2e in 2024, down 18% from 279t CO2e in the previous year. The company’s lifetime clean energy generation potential from its investments now stands at over 1.33 million MWh, with 537,193 MWh added during 2024.

HGEN says its investments directly or indirectly displace fossil fuel usage, supporting the global target of limiting temperature rises to well below 2°C under the Paris Agreement. The full 2024 Sustainability Report is available here.

[QD comment MR: HydrogenOne’s latest sustainability report is a reminder of the long-term climate case underpinning the clean hydrogen theme. While the sector is still in its early stages, the fund has made tangible progress on its environmental metrics, with avoided emissions up nearly 50% year-on-year and operational emissions continuing to fall. These improvements not only support HydrogenOne’s environmental goals but also strengthen the fund’s position as a genuine Article 9 player under SFDR – a classification few listed vehicles can claim.

However, investors will want to see these environmental gains translate into improved NAV performance and, if this is achieved, this could lead to a narrowing of HGEN’s significant discount, which looks unjustified in our view. Achieving commercial success will be key to validating the investment thesis.]