HyGear, supplier of industrial gases through on-site generation and recovery technology, accelerates further by issuing a 6.5% bond loan via NPEX, the trading platform for growth capital.
In total, HyGear aims to acquire €4.9m ($6m) to finance new installations that will produce hydrogen (H2) on-site at its customers locations in 2018 and 2019.
The bonds of €1,000 ($1,228) each will mature in six years’ time and investors can subscribe between March 29th and May 29th 2018. The subscription period closes as soon as the bond offering is fully subscribed.
HyGear is known in the market for its innovative supply method of industrial gases. Instead of central production of gas, and road transportation to end users, the company has developed small scale generation and recovery technologies that are installed at the end users’ locations. These end users, usually in industries like glass, steel, semi-conductor and food production, are offered a more reliable and cost-effective supply option against reduced environmental impact.
Last year, the company redirected its focus from project-based sale of installations to so called GAAS solutions (Gas as a Service), in which HyGear takes full responsibility for the gas supply and retains ownership of the installations. Industrial end-users of gases can focus on their primary processes and only pay for what is consumed.
This profitable strategy is on track and accelerates above expectations. This results in increased financing needs for 2018 and 2019 that can partially be covered by the company’s equity and partially with new capital from NPEX investors.
Marinus van Driel, CEO of HyGear, explains, “We sell our installations worldwide but mainly see growth in our new product Gas as a Service. With this, we take over the management and maintenance of the installation completely and the customer pays for the quantity of gas that they use. This is a very interesting subscription model but requires more working capital. That’s why we are asking investors of NPEX to take part again.”
New supply contract with Nedstack
Nedstack, a market leader in proton exchange membrane (PEM) fuel cell has opted for HyGear to be its supplier for H2 in cylinders for their daily quality control testing of fuel cell stacks on the production line in The Netherlands.
Fuel cells generate electricity from H2 and air without harmful emissions. The so called “stacks” are considered to be one of the most important components in the future energy system as they can be deployed in zero-emission transportation applications as well as stationary power generation.
Arnoud van de Bree, Nedstack’s CEO, commented, “We see increasing demands for our fuel cell stack technology, which results in an increasing demand for H2 for our production process. Before entering in this supply agreement, we thoroughly tested H2 from the new plant in Arnhem and found that quality was stable and well suited for our PEM fuel cell application.”
“Our supply agreement with Nedstack results from a long-lasting business relation that started when our companies were founded more than 15 years ago. It is great to see that we are still finding synergies now both our businesses are ramping up” Marinus van Driel added on behalf of HyGear.