Avina Clean Hydrogen, a U.S.-based developer of hydrogen production plants, will seek to raise approximately $1bn, or possibly more, in 2023, CEO Vishal Shah said in an interview.
The company will need $600m or more of debt and between $200m and $300m of equity, Shah said. Capital raising talks are focused on the operating company and project level.
Avina is also in discussions with potential investment bankers, but has not hired anyone yet, Shah said.
“The capital needs for us are going to continue to grow,” Shah said. “We are certainly open to bringing on additional partners.”
Four development projects have offtake agreements in place, Shah said. The first operational plant will open in Southern California next year or early 2024, followed by Avina’s 700,000 mtpa green ammonia project in the Texas Gulf Coast. Additional projects are underway in the Midwest.
Three of those projects, each with offtakers in place, will reach FID in 2023 and need project debt, Shah said.
Avina is engaged with half-a-dozen potential customers and will seek to develop additional projects within that existing footprint.
Renewable energy procurement is also an important concern for Avina; the Texas project alone will require 900 MW of renewable energy to power, Shah said. The company is in offtake discussions with regional IPPs, mostly in solar and battery storage, but could use help with those agreements. Shah declined to name the firm’s legal advisor.
Avina was founded more than three years ago and is principally backed by Hydrogen Technology Ventures, a firm headed by Shah.
An equity raise was completed in early Q4, Shah said, declining to provide details. The company has a “large industrial firm” as a strategic investor that it hopes to announce soon. Looking forward, the company will look for a second strategic investor, as well as project finance.
