Green Hydrogen Systems to buy land for expansion above 400 MW
Source: Green Hydrogen Systems A/S (GHS)
The board of directors of Green Hydrogen Systems A/S (CPH:GREENH) has approved the company’s planned expansion of the electrolyser production capacity of its Danish hub from 75 MW to 400 MW.
Moreover, the company has decided to buy the current facilities and land, currently on lease, plus surrounding land at the site in Kolding to prepare for even further expansion in the future. The complex, which includes production lines, research and development (R&D) facilities and offices, could scale up to 1 GW of electrolyser production capacity in subsequent phases.
Green Hydrogen Systems estimates it will need to invest between DKK 250 million (USD 39.6m/EUR 33.6m) and DKK 300 million to acquire the existing assets and carry out the Phase 2 expansion.
“Looking forward our focus remains to execute on our plan for growth and value creation from continued investments in R&D, manufacturing capacity and talented employees. Besides increasing production capacity, the expansion will secure sufficient space to grow our organisation from 100 employees at present to around 300 by 2025,” said Sebastian Koks Andreassen, CEO of Green Hydrogen Systems.
The current expansion is expected to be fully completed by 2023. Certain elements of the plan need to be cleared by the authorities.
To finance the project, the company will rely on the DKK 1.265 billion in proceeds it raised in its recent initial public offering (IPO). A portion of the funds will also go towards the launch of the X-Series electrolysers.