Edison Investment Research Limited
London, UK, 26 July 2021
Global Energy Ventures (GEV): Initiation - Emission-free green hydrogen and H2 transport
Global Energy Ventures (GEV) is one of the first transport companies to offer the prospect of genuinely emission-free hydrogen production and inter-regional hydrogen transport solutions. Its innovative C-H2 Ship design has been approved and is in the early stages of development and construction prior to an expected launch in 2026, most likely serving markets in South-East Asia, but with exciting applications in offshore energy production in Europe too. Our scenario models suggest IRRs of between 10% and 19%.
Our modelling suggests potentially attractive IRRs from a range of scenarios. We have modelled a deflationary scenario and a flat pricing scenario for a fleet of 430t vessels and a fleet of more efficient 2,000t vessels. In the 430t fleet size, the IRR comes in at 9.7% in the deflationary scenario, rising to 14.2% in the flat pricing scenario. The larger vessel fleet benefits from scale and indicates IRRs of 13.8% and 18.7% in the respective scenarios. However, there are considerable risks to achieving these returns including funding, hydrogen availability, hydrogen pricing, the fact that the hydrogen market is at an early stage of development and that the vessel design is novel and therefore untested.
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