The much-needed capital injection of 80 to 100 million euros that John Cockerill in Seraing is looking forward to to save its hydrogen division appears to be on the way. So reports the business newspaper L’Echo.
In the past, John Cockerill Hydrogen already raised 230 million euros from various investors, but that money quickly ran out. The capital problems of the industrial group’s hydrogen division are also raising questions among Belgian politicians, as both the federal and Walloon governments stepped into Cockerill’s hydrogen branch last year.
Pioneer with problems
How much the government invested in the capital round about a year ago, John Cockerill did not disclose. At the time, the federal private equity and investment company SFPIM talked about a “strategic investment” that “underscores Belgium’s position in the global hydrogen economy” and “the global decarbonization of the industry.”
With the money raised, John Cockerill Hydrogen aimed to expand its alkaline-electrolyser production capacity through “mega plants in strategic locations.” It was working on production sites in the United States, India, and the United Arab Emirates, among others, and was also studying investments in Morocco and Vietnam.
The bicentennial company, a former steel giant, became a pioneer in green hydrogen a decade ago. The Seraing site produces alkaline electrolyses, among other things, which can produce green hydrogen at low cost and on a large scale. John Cockerill Hydrogen considers itself a global leader, having already supplied 1,300 electrolysers worldwide.
Extra money from SFPIM and WE?
Yet, all does not seem to be going smoothly for the group, as L’Echo reports that Cockerill is urgently seeking an additional 80 to 100 million euros for the hydrogen division, stating that “without new funds, the continuation of the activities would be endangered.”
According to L’Echo, both SFPIM and its regional counterpart, Wallonie Entreprendre (WE), as well as the French American oil and gas group SLB, would be willing to invest fresh money in the division, whether in the form of a new loan, a larger stake, or simply as an investment.
Within the Walloon government, officials are keeping their lips sealed for the time being, and the company itself is also particularly sparse with information. However, the unions fear a possible restructuring if the refinancing does not materialize.
