• 264996 HydrogenOne AR cover
• 264996 HydrogenOne AR pp001-pp005 (Company Overview)
• 264996 HydrogenOne AR pp006-pp017 (Strategic Report)
• 264996 HydrogenOne AR pp018-pp031 (Portfolio Summary)
• 264996 HydrogenOne AR pp032-pp036 (Market Commentary and Outlook)
• 264996 HydrogenOne AR pp037-pp052 (ESG)
• 264996 HydrogenOne AR pp053-pp059 (Section 172)
• 264996 HydrogenOne AR pp060-pp075 (Governance)
• 264996 HydrogenOne AR pp076-pp081 (Independent Auditors Report)
• 264996 HydrogenOne AR pp082-pp086 (Financial Statements)
• 264996 HydrogenOne AR pp087-pp112 (Notes to the Financial Statements)
• 264996 HydrogenOne AR pp113-end (Other Information)

hydrogenonecapitalgrowthplc.com
HydrogenOne
Capital Growth plc



Contents
hydrogenonecapitalgrowthplc.com
Company overview

About us
 Highlights
 Portfolio at a glance
 Chairman’s statement
Strategic report

The role of clean hydrogen in the energy transition
 Investment objective, policy, process and strategy
 Business model and KPIs
 Investment Adviser’s Report
 Introduction
 Portfolio summary
 Portfolio review, performance and valuation
 Market commentary and outlook
 Environmental, Social and Governance
 Introduction from the Chair
 ESG highlights and our impact
 Metrics and methodology
 Strategy
 
 ESG policy
 ESG KPIs
 HydrogenOne’s approach to ESG
 Case Study – Strohm
 Case Study – Thierbach project
 ESG credentials
 Stakeholder engagement (Section 172 Statement)
 Risk and risk management
Governance

Board of Directors
 Directors’ Report
 Corporate Governance
 Directors’ Remuneration Policy
 Directors’ Remuneration Implementation Report
 Report of the Audit and Risk Committee
 Statement of Directors’ Responsibilities
 Independent Auditor’s Report


Parent and consolidated statement of comprehensive income
 
 Parent and consolidated statement of changes in equity
 
 
Other Information

Alternative Performance Measures
 Glossary
 Directors and advisers
 Report of the Alternative Investment Fund Manager
 Notice of Annual General Meeting
 Notes to the notice of Annual General Meeting

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Company Overview
About us
HydrogenOne Capital Growth Plc
(“HGEN”, “the Company”) is the


.








• 


• 


• 

• 


• Adviser’s


Deployed in low-carbon growth
for avoided GHG

Net Asset Value
SFDR

Climate impact fund

tonnes



Investing in clean hydrogen for a climate-positive impactInvesting in clean hydrogen for a climate-positive impact

HydrogenOne Capital Growth plc 



Financial and operational
• During the year, the Company successfully completed
investments in six Private Hydrogen Assets, offering
diversified exposure to the entire clean hydrogen value chain
and deployed
• has

• HGEN’s portfolio has continued to perform in line with the

• 


• 

• Despite challenging market conditions, HGEN raised net
million of additional capital 
investors 
• The Company million as

• 






 % change
NAV per Ordinary Share p  
NAV

  
Ordinary Share price
p  
Market capitalisation

  
Share price premium/(discount) to NAV

  
Ongoing Charges

  
Cumulative  since
inception
  
GHG emissions avoided


e N/A N/A
The EU taxonomy alignment
 N/A N/A
 
other performance measures used by the Company, together with how these measures have been calculated, can be found on page 114.
2 Includes April 2022 fundraise proceeds of £20.9 million net of costs

Governance (“ESG”
• 

• 
“EU Taxonomy”) assessment on Private Hydrogen Assets –

• 



• 
• 

• 

• The C
• 
• 

• Became signatory of United Nations Principles for

• Continued stewardship activity with portfolio companies to


Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information





at











UK
France







NAV
m






Strohm







Bramble

Elcogen





HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW


pleased to
introduce our second annual report since
the Company’s listing on the London Stock

period for the Company as we continued

portfolio of clean hydrogen investments,

Simon Hogan Chairman











The Board and C
C


O





and a 









 
Thierbach in

companies

e


















increase
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






economy






s




where we own














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



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












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
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












am






Events after the reporting period

 million in 


















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

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
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
Chairman


Strategic report
HydrogenOne Capital Growth plc Annual Report 2022
 The role of clean hydrogen in the energy transition
 Investment objective, policy, process and strategy
 Business model and KPIs
 Investment Adviser’s Report
 Environmental, Social and Governance
 Stakeholder engagement (Section 172 Statement)
 Risk and risk management
FUTURE FUEL. NOW


Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
The role of clean hydrogen in

About Clean Hydrogen
• 
• 

• 
• 
• 





What is driving the Hydrogen Economy?
1 Source: US Department of Energy
2 Source: European Commission
3 Source: UK Department for Business, Energy and Industrial Strategy
4 Source: Japanese Government

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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Decarbonising the energy system





large market to replace hydrogen produced from hydrocarbons in the current hydrogen supply chain is being addressed





 
report_4068.pdf (4% of 2020 emissions)
 
 
 

 
The role of clean hydrogen in


Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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Company Overview Strategic Report Governance Financial statements
Other information
Investment objective, policy,
process and strategy
Investment objective


or indirectly, in a diversified portfolio of hydrogen and

integrating core ESG principles into its decision making and

Investment policy

through investment in a diversified portfolio of hydrogen



 
 
 
 
 

 





Private Hydrogen Assets









minority protection rights to, inter alia, ensure that the Private





long term, although short term disposals of assets cannot be






• 

• 



• at the time of an investment, the aggregate value of the









Partnership’s investment policy and restrictions are the





intermediate holding entities (including successor limited
partnerships established on substantially the same terms


undertakings advised by the Investment Adviser and, in
such circumstances, the investment policy and restrictions



Listed Hydrogen Assets














HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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


• 

• 


• 


• 



Cash







Investment restrictions



• 

• 
assets
  

  
• 

• 








Borrowing policy




o




Gearing may be employed at the level of a special purpose







or any such intermediate holding entities (such as the









Currency and hedging policy

transactions for the purpose of efficient portfolio

in currency, inflation, interest rates, energy prices and


Cash management














Investment objective, policy,
process and strategy

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Investment process


The Investment Adviser has specialist insights and




and ESG policies underpin and guide everything that it

technical advisors, regulatory and legal counsel all combine

Strategy


decarbonisation, as governments, companies and society

today caused by human activities, particularly the burning



















opportunities in clean hydrogen and energy storage for the



HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Investment pipeline

across the full hydrogen value chain, and across the


in a diversified portfolio of hydrogen and complementary

and Green Economy Mark company, integrating core ESG





offers
investors access to a diversified portfolio of private hydrogen

structure offering daily dealing
A focus on material ESG factors, and especially the
deployment of capital to deliver the energy transition to a


average over
time
The Investment Adviser is a specialist investor in this



Today the Investment Adviser has a pipeline of potential




across different jurisdictions and different technologies, the



and societal support for Net Zero and the role of hydrogen in





gas deposits) from the portfolio and taking on further


encumbered by the legacy greenhouse gas emissions


substantially in the coming years, and for the production scale




The clean hydrogen industry in the short term is dominated
by bespoke sources of supply, financed by specialised










Investment objective, policy,
process and strategy

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Business model and KPIs
Business model

strategy, investment objective and policy are set out on
pages 


a mandate to invest in a diversified portfolio of hydrogen
and complementary hydrogen focussed assets principally



at the same time, diversifying risk for an investor, through a
diversified portfolio of listed and private investments across







holdings in special purpose vehicles or intermediate holding





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
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


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
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



Principals of the Investment Adviser responsible for the





All administrative support is provided by third parties







 



Investment Adviser and other key service providers on




HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Business model and KPIs
KPIs
Objectives Principal risks KPIs Review

To deliver an attractive level of capital growth



• 
affect the hydrogen sector
• 
• 
performance)
• 
• 
• Increased competition for assets
NAV per share
p

NAV Total return per annum
*




and the reasons for relative under and over
performance against various comparators is

Share price return
*

Index






complementary hydrogen focussed assets
•

• Increased competition for assets
• 
affect the hydrogen sector
Number of investments


Number of geographies



Board meeting and the reasons for relative under
and over performance of sectors and geographies





Maintenance of a reasonable level of premium or
discount of share price to NAV
•
Investment performance
• 
affect the hydrogen sector
• 
Premium or (discount of share price to NAV


The Board monitors the premium or discount on an


Maintenance of a reasonable level of ongoing
charges
•

• 
costs
Ongoing charges ratio
*





Environmental, Social and Governance policy
integrated in investment decisions and asset
monitoring
Please refer ESG section on pages  to 
Robust ESG policy with established KPIs
Avoided GHG


policy ahead of each investment decision, and in

additionally monitors developments in the ESG


Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
KPIs
Objectives Principal risks KPIs Review

To deliver an attractive level of capital growth



• 
affect the hydrogen sector
• 
• 
performance)
• 
• 
• Increased competition for assets
NAV per share
p

NAV Total return per annum
*




and the reasons for relative under and over
performance against various comparators is

Share price return
*

Index






complementary hydrogen focussed assets
•

• Increased competition for assets
• 
affect the hydrogen sector
Number of investments


Number of geographies



Board meeting and the reasons for relative under
and over performance of sectors and geographies





Maintenance of a reasonable level of premium or
discount of share price to NAV
•
Investment performance
• 
affect the hydrogen sector
• 
Premium or (discount of share price to NAV


The Board monitors the premium or discount on an


Maintenance of a reasonable level of ongoing
charges
•

• 
costs
Ongoing charges ratio
*





Environmental, Social and Governance policy
integrated in investment decisions and asset
monitoring
Please refer ESG section on pages  to 
Robust ESG policy with established KPIs
Avoided GHG


policy ahead of each investment decision, and in

additionally monitors developments in the ESG

 
together with how these measures have been calculated, can be found on page 114.

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Investment Adviser’s Report
Introduction






analyse, assess and recommend suitable investments


asset management services in relation to the investments

delegated to third parties, oversees and monitors such


alternative investment firm focussed specifically on
investing in hydrogen assets and their role in the energy


through the financing of sustainable investments and
by providing investment solutions that reduce carbon


investment and asset management approach and
integrates its focus on ESG criteria throughout the entire

The Principals of the Investment Adviser



are directly applicable to the hydrogen industry, including


production, ESG track record, investments in both listed and

included on page 
The Investment Adviser’s team


of finance, technical and sector skills to support the


financial modelling, corporate and asset valuation analysis,

Principals anticipate a further increase in headcount as the

Advisory Board of the Investment Adviser
The Principals of the Investment Adviser are supported by

The Advisory Board has been carefully selected to provide


Adviser has appointed the members of the Advisory Board

of the Advisory Board are directors, officers, employees or


evolve

Capital Deployment since IPO and Pipeline
Private



investible u


supply chain companies, particularly electrolyser and

investment in hydrogen production projects beginning in


of its opportunity set in both private companies and

the investible u





consumers of grey hydrogen, and companies seeking to




Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Investing alongside blue-chip industrials and funds
S









Company Country of incorporation 
Private Private HHydrogen ydrogen AAssets held by ssets held by the Limitedthe Limited
  
  
  
  
  
  
  
  
  
Total 
Company Country of main listing
Market value
 % of net assets
Listed Listed HHydrogen ydrogen AAssets held by ssets held by 
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
Total listed investments  
Private assets investmentPrivate assets investment
   
Total investments  
  
  
Total net assets  

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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

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





















   
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 
 
 










   
   
   




                                                             
                                                
                                                   
           
 







HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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

 

Total investment size 
% of NAV 
 
Co-investors 

Why invested
• 
• 

• 

• 

Total Addressable Market 

• 
• 

investment
• 

• 


• 


• 



• 
Word from the top





Nils Aldag, CEO


Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
 

Total investment size 
% of NAV 
 
Co-investors 
Why invested
• 

• 

• 

• 
• 
Total Addressable Market 

• 

investment
• 
• 
• 
• 



Word from the top







Enn Õunpuu, CEO

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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


HiiROC Limited HiiROC Limited 


Total investment size 
% of NAV 
 
Co-investors 
Why invested
• 

• 

• 

• 

• 

Total Addressable Market 

• 


investment
• 

• 


• 



Word from the top








Tim Davies, CEO

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
NanoSUN Limited NanoSUN Limited 

Total investment size 
% of NAV 
 
Co-investors 
Why invested
• 

• 

• 
• 
• 
Total Addressable Market 

• 

• 
• 

investment
• 

• 


• 


• 
• 
Word from the top




Dean O’Connor, CEO

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW




Strohm Holding B.V Strohm Holding B.V 

Total investment size 
% of NAV 
 
Co-investors 
Why invested
• 

• 

• 

Total Addressable Market 

• 

investment
• 

• 

• 


• 

Word from the top







Martin van Onna, CEO

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Bramble Energy Limited Bramble Energy Limited 

Total investment size 
% of NAV 
 
Co-investors 
Why invested
• 
• 
• 

• 
Total Addressable Market 

• U
• 


investment
• 

• 


• M

•  
• 

• 


Word from the top




Tom Mason, CEO

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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


 

Total investment size 
% of NAV 
 
Co-investors 
Why invested
• 
• M

• 

Total Addressable Market 

• 
• 

investment
• 
• nu

• S

Word from the top






Paul Hutton, CEO

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
 

Total investment size 
% of NAV 
 
Co-investors 
Why invested
• 

• 

• 

• 

Total Addressable Market 

• 


investment
• 

• 

• 

• 
Word from the top






HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW




 

Total investment size 
% of NAV 
 
Co-investors 
Why invested
• 

• 
• 
• 

• 
Total Addressable Market 

• 
• 

investment
• 

• 


• 

• 


Word from the top





Jonas Meyer, CEO

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information


Total investment size 
 
Co-investors 
Why invested
• 
• 

• 

Total Addressable Market 


• 
• 
• 

investment
• 


Word from the top











Post year-end investments



HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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

Performance
Valuation





















    





  

 
 

 

   


 

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



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HydrogenOne Capital Growth plc Annual Report 2022
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
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Net assets
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Cash
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 for period
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









Ongoing charges






















 

 



 



 

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Market commentary and outlook
In the Sustainable Development Scenario of the
International Energy Agency, which models future

Agreement, clean hydrogen supply is expected to grow



as the scale-up of renewable power alongside the phase-





investment and policy support for clean hydrogen

Investment Adviser believes that clean hydrogen supply



Hydrogen supply and current position
Hydrogen is a naturally occurring gas which has been
widely used for decades as a feedstock in industrial



almost entirely from the reforming of fossil fuels, with
consequent greenhouse gas emissions estimated to be

A series of fundamental geopolitical and economic changes
are underway in energy markets which the Investment


At the same time, new technologies have matured that
can manufacture hydrogen without GHG emissions, use
hydrogen as a way to store energy derived from wind and
solar power and as an energy carrier for distribution over
long distances, and as a fuel to make electricity using fuel



and regions are setting out plans and targets to


published hydrogen roadmaps, and governments have

of this is to mitigate the impact of anthropogenic climate

that hydrogen can have a material impact as a fuel in the
clean-up and balancing of hard-to-decarbonise energy
systems, such as heavy and long-distance transport, power



growth, modern renewables such as wind and solar power

energy supply, with the remainder met by traditional

Decarbonising the energy system and achieving the goals

task for policy makers, corporations and society, and is


Impetus to improve air quality
WHO




ICE

Many countries and cities have announced relatively near-

urban air quality, as well as to contribute to GHG reduction









HRS




industry and fuel supply chain to adapt quickly to low-

increasing penetration of battery electric vehicles for
light and short distance routes, alongside hydrogen fuel
cell vehicles for heavier trucks and trains and over longer
distances and reduction of the use of heavy fuel oil and

Policy makers and industry are converging on clean hydrogen as a core technology
to deliver Net Zero, improved air quality and energy security. The Paris Agreement



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is also potential for hydrogen converted to ammonia to
decarbonise shipping fuel and for fuel cells and synthetic

Improving energy security

decision makers across the world to focus on the
importance of sustained investment and policy support
for domestic energy production and, crucially, less

is further amplifying the demand pull for clean hydrogen

governments and industries have responded with new

sustainable low-carbon energy, with clean hydrogen set to

Many countries are now focusing on developing energy

at the same time an acceleration of the transition to low


fuels prices, with Brent oil prices for example increasing


with similar increases in regional natural gas prices, has
improved the relative economics of clean hydrogen
compared to grey hydrogen, which is currently the

Whereas the cost of fossil fuel feedstocks used to make
grey hydrogen has increased, the cost outlook for clean
hydrogen continues to improve, with larger scale and more






IPCEI
unlock a further 





regional hydrogen hubs across the country, as part of net


Within this Act, there is a tax credit for clean hydrogen of














announced a national clean hydrogen subsidy scheme
HBM




NZHF
of grant funding to support the upfront costs of developing





place, and the policy and regulatory frameworks that are






existing natural gas pipelines to transport hydrogen





to reduce or eliminate grey hydrogen from processes, to

is for a clean-

that clean hydrogen can displace fossil fuels in hard to
decarbonise sectors, either by burning it in power plants
to replace natural gas, coal, and oil, or by converting it to

Water vapour is the only by-product of using hydrogen


a large percentage of electricity supply over time, the
electric grid will need large scale electricity storage to

electricity to hydrogen, the energy can be stored over
long periods of time either in pipelines and tanks, or in



Source: Hydrogen Council, McKinsey: Hydrogen for Net-Zero. A critical cost-competitive energy sector. November 2021.

*USA $1-5/kg including up to $3/kg green hydrogen tax credit (PTC) under 2022 IRA
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A series of technology developments in recent decades
are rapidly reaching the stage where they can be deployed

feedstock sector and to use hydrogen as a low emission

Grey hydrogen:
hydrogen is manufactured by reforming of fossil fuels


in large scale industrial sites using techniques such as
SMR
Blue hydrogen: capturing the GHG emissions derived from

CCS


Green hydrogen: in order to manufacture hydrogen without

process takes electricity sourced from renewables such
as wind and solar, and uses electrolysis to split water

established and the Investment Adviser believes that the

A combination of factors is driving strong growth in
the uptake of green hydrogen for the future, including
upscaling and consequent lower unit costs in renewable
electricity and electrolysers, increased penalties and
regulatory barriers to further growth in fossil fuels and the
potential to use green hydrogen as a storage medium
for intermittent renewable power and as a long-distance

Turquoise hydrogen:


Emerging clean hydrogen technologies: there are a number
of emerging technologies that could result in low-cost


or plasma processes applied to city and agricultural waste

nuclear power plants can be converted to hydrogen via

intends to monitor these developments for potential











worldwide hydrogen opportunities and represents a ‘long



million of private opportunities for potential investment





Adviser continues to monitor the



globally today, the capacity of which is dwarfed by the












are at an earlier stage, and could ultimately cost over




HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Market commentary and outlook


  

  
  

  

  

 

  

 




Germany has recently taken the lead in hydrogen policy


accelerated the energy transition in Germany, in a way that

Biogas Quota reduction

draft bill on the planned amendment to the GHG quota

it will no longer be possible to use conventional biofuels
from agricultural feedstocks such as corn, grain, rape, or


vehicle charging power and a three-fold credit for green


t is expected
to be by 
impact on the viability of green hydrogen companies - the
faster phase-out of biofuels will drive up demand for GHG

















allow the mixing of green hydrogen into existing gas




energy players seeking to decarbonise their existing gas


HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Strategic ReportCompany Overview Strategic Report Governance Financial statements
Other information
Introduction from the Chair
Our commitment to investing in clean hydrogen for a
positive environmental impact is at the core of everything
we do at HydrogenOne. In just over a year, we have seen
the conversation around hydrogen’s potential for fueling
the global energy transition jump to the top of the climate
and political agenda. As a climate impact fund, the greatest
contribution we can make to achieving the goals of the
Paris Climate Agreement is through our investing activities
and engagement with portfolio companies to promote our
ESG principles.



begun collecting baseline data for our ESG KPIs. I am


draft ISSB

measure and report our sustainability impact.
We were also pleased our Investment Adviser became

signatories, we will push forward with our sustainable
investment objective as we continue to deploy capital in the
low-carbon growth opportunities and deliver meaningful
climate change mitigation through the reduction of harmful
emissions.
Environmental, Social and Governance
(“ESG”)
Simon Hogan
Chairman


HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Environmental, Social and Governance
(“ESG”)
FUTURE FUEL. NOW

Our Impact:
 million
deployed in low-carbon growth;
 t

24.3% by NanoSun 2.5% by Elcogen and 0.2%
by Strohm
;


;



the Company’s shareholding;


Displace fossil fuels






Established methodology
to measure the avoided
emissions
The Company has put in place a consequential
methodology to measure the avoided emissions



which incorporates the Greenhouse Gas


ESG highlights:
• HGEN is a climate impact fund with an ESG
policy integrated in investment decisions
and asset monitoring;
• 
Fund under the SFDR and EU Taxonomy
Regulation;
• Completed EU taxonomy alignment
assessment on the Private Hydrogen Assets


• a signatory


• 
Company’s performance in accordance with
the SFDR and the draft ISSB frameworks;
• Continued stewardship activity with
portfolio companies to further enhance ESG
credentials and reporting; and
• 
• The Company’s Board diversity


HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Strategic ReportCompany Overview Strategic Report Governance Financial statements
Other information

Greenhouse gas emissions:
 
 
* 
 / £m
GHG intensity / £m
 
Avoided cumulative 
** 
 



Private Hydrogen Assets emissions for those scopes
(adjusted for the Company’s equity holding in them).



employees or operational activities. More detail on the
methodology is set out below
are calculated using a consequential methodology which
means lifetime emissions of products sold are recognised.
In the current year no projects directly producing
hydrogen were operational, avoided emissions from







energy usage in particular was considered high and is
typically taken directly from utility bills.

low. A number of portfolio companies are at an early stage

increase in future, assuming no mitigation action is taken.
Several portfolio companies have pro-actively sought
to reduce their emission by securing renewable energy




with the Private Hydrogen Assets to enhance the data


impact on achieving its sustainable investment objective.
Nevertheless, the Company is engaging with the Private
Hydrogen Assets to reduce the actual emissions.


accordance with the Greenhouse Gas Protocol equity share
approach. Each portfolio company has been engaged
during the year to develop a greenhouse gas inventory.


reviewed and processed to calculate the emissions by

limitations to data (gaps or quality), these are addressed
in accordance with the Greenhouse Gas Protocol via
the use of estimates and each portfolio company
receives feedback on data quality based on relevance,
completeness, availability, consistency, transparency and

provided and their implementation will be monitored on a
quarterly basis as data is collected throughout the year.
Estimates form a necessary part of the greenhouse gas
emission process and emission factors are central to


used or, where more appropriate, the Intergovernmental
Panel on Climate Change (“IPPC”) emission factors can be
relied upon. Both of these sources are recognised by the
Greenhouse Gas Protocol.
Avoided emissions have been calculated on a




Secretariat, the World Bank, the European Investment


grid emissions for many countries, this has been used as a
key input into the estimation process. In accordance with
the framework, portfolio companies who provide products


projects were operationally producing hydrogen yet as
they are still under development. When they do the annual
avoided emissions from the hydrogen produced will

Metrics and methodology
* Notwithstanding any mitigation action in the respective supply chains, we expect that scope 3 emissions will increase as data gaps are closed and use of
estimates are reduced as more reliable data from Private Hydrogen Assets becomes available.
** Statutory Streamlined Energy and Carbon Reporting (SECR) disclosure.

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Strategy
Strategy
Hydrogen and climate change mitigation

deliver an attractive level of capital growth by investing,

and complementary hydrogen focused assets whilst
contributing to climate change mitigation by integrating
core ESG principles into its decision making and




sustainability risks which the Company considers through



of waste during manufacturing processes and human rights
in the supply chain. Physical risk resulting from climate



of portfolio companies.

approach to managing these risks and currently there is no



taken two key actions in the year: classifying the Company




 at the time of investment.

impacts of each portfolio company to ensure that they
align with the goal of climate change mitigation and, do no


must consider the portfolio’s compliance with minimum



require the Company to integrate sustainability into the
investment decision making progress, monitor sustainability
performance post-acquisition and promote the integration
of sustainability within portfolio companies.

initiative provide a framework for the Company to
implement its sustainable investment objective - climate

’s target

is aligned with the Paris Accords target of limiting global


engagement with portfolio companies.




with portfolio companies to develop and implement carbon
reduction plans.
Avoided emissions are the primary sustainability
opportunity from the investments. Many of the Company’s
investments either directly or indirectly displace fossil fuels,
making a clear contribution to achieving the Paris Accord’s

to measure the avoided emissions achieved based on

Harmonized Approach to Greenhouse Gas Accounting.




NAV
Avoided emissions 
the Company’s holding)



sold (Company’s share)




solutions are addressing a key challenge of today’s energy system: Providing
renewable hydrogen and Syngas as substitutes for fossil energy sources.


Electrolysers



a modular design which can scale to meet demand.
 


companies to start series production of electrolyzers.



company from other suppliers.


industry for decades and is now embarking on a green future within the electrolysis business.


HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

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TEMPLATE
Leveraging existing competencies


manufacturing capacity is the hydrogen pioneer’s forward-looking scaling strategy: “We’re not starting from scratch







guests from politics and industry.
Avoided emissions:

Net production
rate

kg/h
Location
Germany


hours
Grid emission




emissions


732,383 tCO2e, of which the Company’s share was 31,199 tCO2e.
These represent the lifetime emissions from 80MW of electrolysers sold during the year.
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Strategy

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Strategic ReportCompany Overview Strategic Report Governance Financial statements
Other information
Environmental, Social and Governance
(“ESG”)
Sustainable
business
practices
ESG
at HGEN

Boards
Our ESG Principles
Screening
and due
diligence
Low-carbon
growth
ESG policy



Adviser and any undertaking advised by the Investment Adviser in which it
invests, with the Company’s ESG policy, and ensures that the ESG policy is
kept up-to-date with developments in industry and society.
The Company has embedded the following ESG principles into its policy:
Allocating capital to low-carbon growth

positive environmental impact, accelerating the energy



will enable investors to back innovators in low carbon
industries by supporting the access of such companies to
the capitalmarkets.
Screening and due diligence
Prior to investment, the Company will undertake an
initial screen of the prospective investment’s economic






harm” and minimum safeguard requirements will also
beassessed.





the prospective investment against these criteria will be
considered by the investment committee.


engagement with the boards of its Private Hydrogen Assets.

cannot be uniform but must be aligned with long term
investors while supporting managements to innovate and

directors is important to the Company, as are simple and
transparent pay structures that reward superior outcomes.
Encourage sustainable business practices

transparent and accountable and to uphold strong ethical

the interests of material stakeholders and engagement to
deliver positive impacts on the environment and society.
Hydrogen Assets should support the letter, and spirit,

the Investment Adviser will encourage the adoption of
initiatives, including but not limited to,


alignment of lobbying activities.

with to report against principle adverse indicators.
ESG in the Company
Given the nature of its investments, the Company has
committed to disclosing key performance metrics
(“KPIs”) that describe the environmental impact of its
portfolio, guided by frameworks and regulations such

particularly focused on the greenhouse gas emissions from
investments and the emissions that have been avoided
(“avoided emissions”) as a result of the investments, and
has actively engaged with portfolio companies to adopt an
appropriate reporting framework.









investment portfolio of the Private Hydrogen Assets which are
the focus of this report. 
we note that there are some data gaps and use of estimates

are ongoing to enhance data quality in this reporting.
Mandatory disclosures under Streamlined Energy and
 and subject to the
methodology outlined 

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

ESG KPIs
KPIs 2022 progress
Environmental
Investing capital in
low-carbon growth
 million invested in low-carbon growth during the year.
GHG emissions avoided

GHG emissions on a
look-through basis


– see  for
methodology

Lifetime clean energy
capacity developed

The Company’s share

in fuel cells and
electrolysers

Social
Jobs supported

In aggregate, the Company’s Private Hydrogen Assets were

The Company’s Board
Independence and
Diversity


successful Board and the Company currently has two male and two female Board members.

Portfolio Companies
Board Independence
and Diversity
continued to Private
Hydrogen Asset Private Hydrogen Asset Boards


Assets.
Work on human rights
A review of the human rights policies in place at each Private Hydrogen Asset was undertaken and

Environmental, Social and Governance
(“ESG”)

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Other information
Governance
Engagement to deliver

Positive and proactive engagement with the boards:
ould typically be appointed either
as a director or a Board Observer to the boards of the invested Private Hydrogen Assets and would
be actively engaged in ESG matters in these businesses. As the invested company reaches a certain
level of maturity, the Investment Adviser representative may step down from their position as a
director or a Board Observer at an appropriate time.
wereight Private Hydrogen
Assets and as an observer on one Private Hydrogen Asset
continue to 
.
Investment Adviser voted on behalf of the Company at all meetings where they were able
Private
Hydrogen Asset board meetings and votes.
Site visits
completed during the year as part of the oversight and
 Private Hydrogen Assets.
Simple and transparent
pay structures that
reward superior
outcomes
Strong linkage to long-term value creation ahead of short-term outcomes by use of share options
and other incentive programmes.
Encourage sustainable
business practices and
ethics
Each Private Hydrogen Asset had been through a review process covering their supply chain due
diligence, waste management and circular economy considerations.
were made and implementation will be monitored
go.
Stewardship
Each Private Hydrogen Asset had been engaged with during the year to begin the reporting
process on principle adverse indicators and key metrics to support our climate change mitigation
investment objective.
were made to improve this information going forward.

are all areas where improved processes are being implemented.
Private Hydrogen Asset had been reviewed and policy



Governance structure
Private Hydrogen Assets
ESG Leads
Investment Adviser
ESG Lead
HGEN Board

Third Party
Consultants
Investment Adviser
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
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HydrogenOne’s approach to ESG
Our approach to ESG

reporting standards and supports the progress being made
by the International Sustainability Standards Board (“ISSB”).

 

Government’s stated intent to make ISSB the backbone of
future sustainability reporting. Although these standards are
still being developed, the draft 

has been followed in the preparation of this report, including




Governance
Structure

oversight of sustainability related risks and opportunities.

are independent of the Investment Adviser to ensure
appropriate oversighthe Board’s gender diversity through


key risks and compliance with sustainability regulation such

times
to discuss sustainability related matters (including the




Investment Adviser operates an internal governance


Portfolio Company’s nominated leads on sustainability
and also with any third-party consultants and advisors
asrequired.


establishment of Shell’s ESG practice, reporting and

• Climate change policy and emissions reporting.
Introduced reporting of Shell’s strategy for energy

• 

• Human rights, environmental policy and fringe

Ireland, including multiple site visits with stakeholders and
community engagement. Spanned a period where Shell
had multiple challenges from stakeholders and NGOs in

• Engagement with Norway Council on Ethics and other
stakeholders regarding Shell’s human rights and oil spills

• Multiple visits to Alaska North Slope and the Aleutian
Islands, including assessment of a drilling rig damaged by

• 

• Engagement with multiple local and international
stakeholders regarding the impact of oil sands mining on

• 

• : senior
advisor for ESG policy and reporting. Included launch of


Board oversight responsibilities

the review and approval of the Company’s sustainability

appropriate skills and competencies are utilised in the

advisors and consultants are engaged as appropriate.

ESG screens
Allocating capital to low carbon growth
• 
• issions
• Excludes fossil fuels extraction

• 
• Alignment with long term minorities
• Alignment of executive pay with long term shareholders
• Independence of AC
• 
Encourage sustainable business practices
• 

• Transparency
• Company policy and disclosure of supply chain practices
• 
• 
Article 9 Compliance
• 
• 
• Investee agrees to provide data for SFDR periodic
disclosure

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
ESG in the Company
• KPIs including avoided emissions
• Mapping vs UNSDGs
• 
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Strategic ReportCompany Overview Strategic Report Governance Financial statements
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



delegate this to the Investment Adviser who operates a
screening and due diligence process as well as considering


committee prior to making a recommendation to the Board.
Screening

Taxonomy


reporting from the Investment Adviser and, from relevant
third parties directly in order for the Board to challenge the
approach and maintain its oversight.



received reporting on the portfolio’s alignment with

transactions, will receive reporting on the alignment of

sustainability risks and opportunities related to acquisitions
are also considered by the Investment Adviser as part of
the acquisition due diligence process and outcomes are
reported to the Board.

Board set a target that the Company’s portfolio at the time
of investment 



basis and will consider further sustainability related targets
for the portfolio in the future as appropriate.



Principals of the Investment Adviser oversee this process

Investment Adviser has day to day responsibility for these
matters and engages directly with portfolio companies

oversight of the data collection and reporting process for
the monitoring of performancehis has been outsourced to
a third-party service provider.
Screening and due diligence
At origination the investment characteristics are positively
screened for alignment with the Company’s sustainable
investment objective, being climate change mitigation
through hydrogen and complementary hydrogen focused




HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

EU Taxonomy alignment


considers the potential investment’s economic activity


Once substantial contribution criteria are established,

undertaken to ensure the other sustainability objectives

investment’s activities.
Engagement with the potential investee’s management
team is required to complete this assessment as it typically
requires data that is not available publicly. Some inputs
into this work are also qualitative and interviews with
management provide the most insight.






social considerations, with a focus on human rights. All


in developed jurisdictions with labour law compliance

policies and procedures each company had in place to

recommendations for improvement in some companies, an

due diligence.



At the time of the assessment, the Company was compliant







one portfolio company that is separate from the core
hydrogenfocus.


process to ensure the sustainability strategy is achieved

diligence process are addressed.



metrics form the basis for monitoring the performance of
the portfolio, in addition the relevant PAIs will be tracked.
In order to monitor these metrics, the Company has


sought commitment from these companies to collect

party to assist with the data collection, processing and



work undertaken during the year will enable greenhouse

months.
Aggregate EU Taxonomy Alignment
Aligned
Non-aligned


As the acquisition process advances, detailed due diligence
is undertaken. As part of this assessment the Principle
Adverse Indicators (“PAIs”), which are sustainability metrics



cover climate (e.g. GHG emissions), nature (e.g. pollutants
and hazardous waste), human rights (e.g. compliance with
global standards), social impact (e.g. gender pay gap) and


judgments are used to consider the likely impact of these

decision but also the ownership priorities if acquired.
Consideration of PAI’s is a new process introduced during


not immediately lead to withdrawing from the acquisition

that could be implemented with the investee during the
ownership period.
HydrogenOne’s approach to ESG

Case Study – Strohm

NAV
Avoided emissions

holding)



Thermoplastic Composite Pipe.
,


Decarbonising the oil and gas sector
It is widely recognised that there is a need for fossil fuels in the short term to meet energy demand and, in the




decarbonize.





corrosion resistance properties of the pipe also reduce the risk of leaks and pollution to the environment.
Application to renewables




to transporting green hydrogen is a key growth strategy for Strohm.
“It is in our genes to disrupt, innovate and lead for the better. This includes working
toward a net zero society”

HydrogenOne Capital Growth plc Annual Report 2022
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Environmental, Social and Governance
(“ESG”)

Case Study – Thierbach project
Regenerating former coal mining sites and decarbonising the industry





trees. In addition, large solar power generation parks are being built, from where the renewable power needed to
produce green hydrogen in the region will come.



mobility sector, large-scale energy and industrial consumers such as the chemical industry and commercial air and
road transport operators. According to federal government’s estimation, green hydrogen demand in Germany is


an alkaline electrolyser with a high-capacity battery, which enables constant production of cost-competitive green

produce green hydrogen and green heat, making use of all the installed renewable power generation capacity and

stabilize power grids and prevent energy waste.

infrastructure including critical power and water supply. Green hydrogen production can play an important role in

enterprises and generating new jobs and opportunities.



of GHGs avoided over the life of the project.
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Environmental, Social and Governance
(“ESG”)

Goal UN SDG target The Company’s focus
• Reduce deaths from
pollution

Fuel cell vehicles to
displace diesel and fuel
oil. Direct use in industrial
activities to displace fuel
oil and coal. Demonstrated
through avoided emissions.
• Increase access to

• 


• 

Enable the expansion
of renewable energy
through direct use of clean
hydrogen and as a form
of energy storage. Exclude
those involved in the
production of fossil fuels.
• Upgrade industries for


• 
technologies

Enabling the
decarbonisation of
processes in heavy industry
and enhancing innovation
in transport and for a more
circular economy.
• Reduce the environmental
impacts of cities

Enabling the adoption
of cleaner fuels for
transportation and in heavy
industry to reduce pollution
and advance a more
sustainable economy.
• 
practices and reporting

Engagement for good
governance and
transparency across the
portfolio.
• 

Enabling the replacement
of fossil fuels, to reduce
CO2 emissions and the
corresponding negative
impacts on ocean
chemistry.
• 
and land degradation

Enabling the replacement
of fossil fuels to reduce
GHG emissions and the
associated acceleration of
global warming.
ESG Credentials
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Strategic ReportCompany Overview Strategic Report Governance Financial statements
Other information
United Nations Sustainable
Development Goals




term goals are designed to end poverty,
improve health and education, reduce
inequality, create sustainable economic
growth and combat climate change.

to implement measures in the interests
of people, the planet and prosperity,
and therefore contribute to changing the


and investment policy is closely aligned
with seven of these goals, namely


Industry, Innovation and Infrastructure






ESG Credentials
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Principles for Responsible Investment
As part of its commitment to sustainable investing,
during the year the Investment Adviser has signed the


network for investors who are committed to integrating
ESG considerations into their investment practices and






revenues from products and services that contribute to



industrial transition to a green and low carbon economy

SDR


Conduct Authority issued a consultation on Sustainability

regulation will introduce general anti-greenwashing rules


supports measures to reduce greenwashing and clarify



Carbon Neutral



Company considers the term carbon neutral in line with


is actively working on setting a net zero target through
carbon reduction, it is important to recognise the emissions
that have already occurred and take action to address

long-term solution to climate change, however it is part of
the action that can be taken in the short to medium term as


removal projects where there is transparency over the
measurement and allocation of sequestration.









Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Stakeholder engagement

The Directors have a statutory duty to promote the success of the Company, whilst also having regard to certain broader matters,
including the need to engage with employees, suppliers, customers, and others to their interests.
The Company has no employees and no customers in the traditional sense. In accordance with the Company’s nature as an
investment trust the Board’s principal concern is the interests of the Company’s shareholders taken as a whole. In doing so, it has
due regard to the impact of its actions on shareholders, the environment and the wider community.

point of contact between the Company and our stakeholders. The Company’s Corporate Broker, Barclays Bank PLC, are also an
integral point of contact between the Company and our shareholders and, together with the Investment Adviser ensure that any
shareholder feedback or observations are collated.



Stakeholder
group
Why is it important to engage? How has the Board communicated and engaged?
Key topics of engagement and
decisions made by the Board
Shareholders 
of the Company are set out on
page .
The Investment Adviser and the
Board believe that Shareholders
and their support is critical to
the continuing existence of the
business and delivery of its long-
term investment strategy.
It is important to the Company’s
continued success to have

capital in order to expand the
Company’s portfolio over time
in order to further diversify the
investment portfolio and create
economies of scale.
– Annual and Interim Reports;
– Quarterly factsheets;
 
announcements;
– Investor webcasts and presentations (through the

 
primarily through the Investment Adviser and corporate
broker;
– Regular institutional investor feedback received from
the Investment Adviser and corporate broker;
– Research analyst presentations through the Investment
Adviser.
– AGM;
– Website;
– First Capital Markets Day 
Shareholder engagement
was rewarded by support for
the Company’s growth and

the issue of new shares in April

a general meeting held in October

Programme.
Investment
Adviser
The Investment Adviser is the

to the Company and a description
of its role can be found on page

– Board and Committee meetings;
– Regular reports and presentations from the Investment
Adviser;
– Ad hoc meetings and calls.
In addition to all matters related to
the execution of the Company’s
Investment Objective, the Board
engaged with the Investment
Adviser in regards to the
Company’s SFDR reporting and
Article s well as
the Company’s capital raise in April
held a strategy

Investment Adviser was invited to
present and discuss with the Board
the Company’s future strategy.
AIFM The AIFM is a critical service
provider for the Company’s long-
term success and engages with
the Board and the Investment
Adviser for the purpose of
providing investment advisory
services to the Company.
The Board regularly monitors
the Company’s investment
performance in relation to its
objectives, investment policy
and strategy.
– Board and Committee meetings;
– Regular reports and presentations from the AIFM.
The AIFM is responsible for
monitoring the risks faced by the
Company and these are regularly
discussed at meetings.

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Stakeholder engagement

Stakeholder
group
Why is it important to engage? How has the Company communicated and engaged?
Key topics of engagement and
decisions made
Other key
service
providers
The Company does not have
any direct employees and works
closely with a number of key
service providers, including
the Administrator, Company
Secretary, auditor and corporate
broker.

and timeliness of their service
provision is critical to the success
of the Company.
– Board and Committee meetings;
– Ad hoc meetings and calls;
– Annual review of performance based on a

– The Company undertakes regular reviews of all

through the activities of the Management Engagement
Committee.
The feedback given by the
service providers is used to review
the Company’s policies and
procedures to ensure open lines
of communication, and operational

The Company is able to identify
and resolve problems with service
provider relationships, should they
arise, via this process.
During the Company’s annual
report production, the Audit and
Risk Committee has engaged with
the Company’s external auditors

and accuracy of the reporting and
to ensure the reporting process

service providers.
The Board sought advice from
the Company’s corporate broker
in respect of various matters,

Portfolio
investments
The Board considers each
proposal against the Company’s
investment objective, and
investment policy as disclosed
on  and with
consideration for the wider group
of stakeholders.
– The Company’s Board is presented with potential

the Investment Adviser and which have undergone a
process of analysis, including considerations relating to
environmental, social and governance issues.
 
performance of the Company’s portfolio companies on
a regular basis.
– In many cases, investments in Private Hydrogen Assets

the Board monitors.
 
companies is provided in the Investment Adviser’s
Report within the Board Packs.



completed during the year. Other
investment opportunities were
reviewed but were rejected as
they did not pass the investment
screening process.
As part of the ongoing portfolio
performance monitoring, the
feedback given by the Investment
Adviser is used to review
the Company’s policies and
procedures to ensure open lines
of communication, and operational

Companies.
Society and the
environment
Ensuring our investment
positively contributes to climate
change mitigation with an ESG
policy integrated in investment
decisions and asset monitoring.
See ESG section of the report on pages  See ESG section of the report on
pages 

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Other Matters
Modern slavery disclosure
The Company is committed to maintaining the highest
standards of ethical behaviour and expects the same of its

is unacceptable and entirely incompatible with its ethics as

made to eliminate it from its supply chains.
The majority of services supplied to or on behalf of the

construction industries and other services associated with
those industries. Given what the Company understands to


believes its current procedures and ability to rely on
regulatory oversight in relation to professional services are

Social, community and human rights issues
The Investment Adviser screens the Company’s Investable
Universe as part of the Environmental Social and
Governance analysis for any breaches of the principles of

rights, environmental breaches and corruption. Any
non-compliant companies are excluded from investment.
Anti-bribery and corruption

has developed appropriate anti-bribery policies and
procedures. The Company has a zero-tolerance policy
towards bribery and is committed to carrying out its
business fairly, honestly and openly. The anti-bribery

those who represent the Company (including its business

to it, or on its behalf, to undertake their business without
bribery.
Prevention of the facilitation of tax evasion



failure to prevent facilitation of tax evasion, into force on

evasion in any of its forms in its business. The Company
complies with the relevant UK law and regulation in relation
to the prevention of facilitation of tax evasion and supports

and works to make sure its business partners share this
commitment.

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Risk and risk management
Company information
HydrogenOne Capital Growth plc (the “Company” or


company limited by shares and is an investment company


on the Main Market of the London Stock Exchange and





Asset allocation at year end
The breakdown of the structure of the portfolio at the
Company’s year end is shown on page .
Dividends and dividend policy
The Ordinary Shares carry a right to receive dividends.

dividend is subject to shareholder approval at the AGM.
Dividend policy


further upside potential. The Company intends to invest in

further accretive growth.
The Company only intends to pay dividends in order to


be approved by HMRC as an investment trust save that,
in the medium term, the Company’s Hydrogen Assets


Company currently intends to distribute these amounts to
Shareholders.
The Company’s revenue return after tax for the







Principal risks and uncertainties
The Board, through delegation to the Audit and Risk Committee, has carried out a robust assessment of the emerging
and principal risks facing the Company. These include those that would threaten its business model, future performance,


normal cycle of Board and Audit and Risk Committee meetings. The Audit and Risk Committee undertook a comprehensive
review of the Company’s risk management framework and controls during the year. The risks are documented on a risk
register and each risk is rated by impact and probability with the assessed risk given a risk score and a residual rating. The
risk register is reviewed on an ongoing basis in an attempt to capture all risks and put appropriate mitigation in place. The


together with the mitigated approach, and the Board considers these to be the principal risks of the Company.
 Stable Reducing
Principal Risks and Uncertainties Mitigation Risk Status
Regulatory
Changes in political or environmental conditions in the
hydrogen sector (for example, changes in government policy


in the energy sector and is familiar with its volatile political
and regulatory environment. Extensive contacts across the
sector inform its ongoing monitoring of these risks, which

due diligence occurs prior to any investments and during the
lifetime of their ownership.
The Administrator has a strong track record in administering

to be adhered to.
Policy support

hydrogen need policy support to underpin the scale needed
to drive stand-alone cost competitiveness. Governments
worldwide are showing such support today, but that may be
volatile over the investment time horizon of the Company.
As noted under ‘regulatory’, the Investment Adviser has
longstanding experience in the energy sector and monitors
the policy environment closely. Such experience and

Executive Directors. It is the intent of the Investment Adviser


mitigate the risk of policy volatility.

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Principal Risks and Uncertainties Mitigation Risk Status
Power price
The income and value of the Company’s investments may

hydrogen, both current and expected.


breaches and possible enhanced loss on poor performing
assets.
Risk assessment has increased from volatility in electricity

The Investment Adviser monitors the outlook for electricity
and hydrogen prices. 
and hydrogen prices may be hedged at the hydrogen

As a result, the Investment Adviser oversee power revenues
and monitor regularly against expectations.
Portfolio allocations are monitored on an ongoing basis by
both the Investment Adviser and AIFM, to ensure compliance
with investment limits. Reporting by the Investment Adviser

Operational
Initial pre-deal due diligence may not uncover all risks
associated to a transaction.
Investments are subject to operating and technical risks.
While the Company will seek investments with creditworthy
and appropriately insured counterparties who bear the
majority of these risks, there can be no assurance that all risks
can be mitigated.



limitations in the skills, experience or resources of operating
companies, may reduce revenue.

leading to reduced returns for Shareholders.
The Investment Adviser conducts a vigorous due diligence
process and works very closely with external and technically

with an aim to provide a fully scoped and informed
recommendation.
The portfolio is constantly monitored by the Investment


any impact is limited. Furthermore, the Company invests in a

Performance
Underperforming investment or investment strategy can lead
to underperformance to the Company’s target return and
ultimate investment objective.
Risk assessment has increased from macroeconomic

interest rates.


as part of the Company’s risk register and how those risks are

•  • Market risk
• Interest rate risk • 
At each Board meeting a report on risks, portfolio performance
and any macro and micro considerations is provided by the
Investment Adviser and the AIFM, and reviewed accordingly
with the aim to mitigate such risks.

in line with the investment policy agreed with the Company and
key parties.
Future acquisitions and capital raises
Ongoing capital raises are intended. The Company’s share
price trading at an excessive discount to its net asset value

issues for onward investment.
Risk assessment has increased due to share price trading at a
discount to net asset value.
The Company’s Broker monitors the market for the

Board regularly reviews the relative level of discount against
the sector and has the authority to buy back shares.
The Board and AIFM oversee the investment pipeline and
monitor its progress in relation to Company targets.


Company.
The pipeline is managed by the Investment Adviser and
monitored by the AIFM, with onward reporting to the Board.
The Board is unlikely to agree to capital raises without a
strong pipeline.

HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Risk and risk management
Principal Risks and Uncertainties Mitigation Risk Status

The operational risks of the Company including market,

Extreme market volatility can disrupt capital raising process
and ability to raise monies to repay a debt demand in full.

and may take a longer period of time to realise in order to
fund the Company’s operations or meet its expenses.

expenses at a time when valuations are low.
Risk assessment has increased due to market volatility and
the Company’s share price trading at a discount to net
asset value, delaying the Company’s ability to raise capital.

Company.

market and portfolio valuations.

asset
including the Company’s Listed Hydrogen Assets.
The Investment Adviser, AIFM and the Board continuously


dividends, or further investing activities.
Service providers
Disruption to, or failure of the Company’s Administrator or

line with expectation
All counterparties to the Company are reviewed as part of
the risk register. A material credit risk is that of banks holding
un-invested cash, the credit rating and credit worthiness of
these are considered. A review of operational counterparties
such as the Administrator for operational procedures, disaster
recovery and system security is undertaken.


investment due diligence process.
Portfolio valuation
Risk that portfolio asset valuations published do not represent



projections for the relevant investments. Projections
will primarily be based on the Investment Adviser’s
assessment and are only estimates of future results based
on assumptions made at the time of the projection. Actual


returns to Shareholders.
A rise in interest rates will lead to an increase in the Discount
Rate applied to the Private Hydrogen Assets’ valuation,
leading to a reduction in the Company’s net asset value.

of these assets.
The discount rate used in the valuations incorporates spot gilt

which mitigates the longer term impact of rises in interest
rates.
The valuation polices will be reviewed 

the Private Hydrogen Asset values.
Key person
The Investment Adviser is a newly formed Company, with

Person risks at this time and should they become unavailable,
this could have a negative impact on the Company’s ability to
achieve its investment objective.
The Investment Adviser is committed to expand its business/

expanding team.
This risk is covered in the risk register and reported on at each
Board meeting.
Tax

result in loss of investment trust status.
Changes in tax legislation such as BEPS, WHT rules and
resulting in
a drop in returns from the Company’s investments.
The corporate structure of the Company is reviewed
periodically by the Company and its advisors.
All investments receive professional structural advice prior to
investment.
Political and associated economic risk
Exposure to Russia and/or Ukraine within the investment
portfolio could lead to losses on investments.

stocks in particular, of a prolonged downturn caused by the
situation, could lead to reduced valuations of the Company
The Board and Investment Adviser have reviewed the
portfolio for exposure and will continue to keep this under
review.

Strategic Report
HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW

Company Overview Strategic Report Governance Financial statements
Other information
Viability statement
The Directors have assessed the viability of the Group for


ve years, is an appropriate time horizon
over which to assess the viability of the Group, particularly
when taking into account the long-term nature of the




In accordance with the Articles, the continuation of the
Company is subject to the approval of shareholders every


Articles provide that the Directors propose an ordinary
resolution that the Company continue its business as

thereafter. Since the Company’s IPO, the Company has

continued support for the Company’s investment objective
and therefore the Directors have no reason to believe that
the vote will not pass.
In its assessment of the prospects of the Group, the Board
carried out a robust assessment of the emerging and
principal risks and considered each of the uncertainties
set out on pages  which included consideration of
severe but plausible downside scenarios (such as a long-
term market downturn
in the realisation of assets and

and expenditure projections and cash projections. These
metrics were subjected to stress testing of the assumptions
to evaluate the potential impact on the Group, including


changes, market developments, level of premium /


framework of the Group is subject to a formal review on at
least an annual basis.
The level of the ongoing charges is dependent to a large

contributor being the Investment Adviser fee. The Group’s
cash realisable from the sale of its investments and
expected dividend income from investments provide cover
to the Group’s operating expenses, and any other costs

their assessment.
The Director’s assessment considered the market risks
associated with the Russian invasion of Ukraine in February

has caused,
been considered and will continue to be monitored. The
Investment Adviser has reviewed the investment portfolio

the Board will keep the situation under continued review.
Based on this assessment, the Directors have a reasonable
expectation that the Group will be able to continue to
operate and to meet its liabilities as they fall due over the

Employees
The Company has no employees. As at the date of this
report, the Company had four Directors, of whom two are
male and two are female.
Outlook
The outlook for the Company is described in the Chairman’s
Statement and the Investment Adviser’s Report.
Strategic report
 of this Annual
Report was approved by the Board of Directors on 

For and on behalf of the Board
Simon Hogan
Chairman


Governance
 Board of Directors
 Directors’ Report
 Corporate Governance
 Directors’ Remuneration Policy
 Directors’ Remuneration Implementation Report
 Report of the Audit and Risk Committee
 Statement of Directors’ Responsibilities
FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
The Principals of the
Investment Adviser
Dr JJ Traynor
Dr John Joseph “JJ” Traynor
has extensive experience in
energy, capital markets, project
management, and M&A. He has held
a series of senior energy and banking sector positions,
including Executive Vice President at Royal Dutch
Shell, where he led investor relations and established
the company’s ESG programme; Managing Director at
Deutsche Bank, where he was the number one ranked
analyst in European and Global oil & gas; Geologist
at BP, in the North Sea, West Africa and Asia Pacific.
He has a Geology BSc from Imperial College, a PhD
from Cambridge University. He attended the INSEAD
Advanced Management Programme, and is a Fellow of
the Geological Society of London.
Richard Hulf
Richard Hulf is a fund manager with
corporate finance and engineering

of experience in the Utilities and
Energy sectors and is a Chartered
Engineer, originally from Babcock
Power and latterly Exxon. In addition,
his financial experience spans stock broking, corporate
finance and fund management with Henderson
Crosthwaite, Ernst & Young and Artemis Investment
Management, where he invested into renewables
companies. He has an MSc in Petroleum Engineering
from Imperial College.
Board of Directors
1. Member of the Audit and Risk, Valuation, Management Engagement,
Nomination and Remuneration Committees.
2. Mr Bucknall is not a member of the committees of the Board but attends
by invitation. Considered independent by the Board. Refer to page 66 for
an assessment of independence for David Bucknall.
3. Each Director has also been appointed as a Director of HydrogenOne
Capital Growth (GP) Limited (a wholly owned subsidiary of the Company
which has been appointed as the general partner of the Limited
Partnership) in order to ensure that the Board are in a position to

of the HydrogenOne Partnership in accordance with the Listing Rules.
Simon Hogan
1,3
(Chairman of the Board and
Nomination Committee)

Mr Hogan has significant capital
markets, legal and management
experience. He was previously a
Managing Director of Morgan Stanley
and Chief Operating Officer across
their Commodities, Fixed Income and
Equity divisions. Mr Hogan has held multiple board positions
and was a member of the FCA Practitioners committee.
Mr Hogan’s contribution is invaluable to the Company

direction as well as managing a newly established Board
and Company.
Afkenel Schipstra
1,3
(Chairman of the Audit and Risk
Committee and the Valuation
Committee)

 years’
experience in Energy in Europe
Afkenel was
previously SVP of Hydrogen Business
Development for the Netherlands at ENGIE, and held senior
positions at Gasunie, Shell and NAM.
Mrs Schipstra’s extensive knowledge of hydrogen

the sector.
Abigail Rotheroe
1,3
(Chairman of the Management
Engagement Committee and the
Remuneration Committee)


investment experience and was
previously Investment Director at
Snowball Impact Management,
asustainable and impact focussed
asset manager. Ms Rotheroe was a
Director of Threadneedle Investment,
following positions at HSBC Asset Management and
Schroders and has experience of institutional and retail

Baillie Gifford Shin Nippon plc and Templeton Emerging
Markets Investment Trust plc.
Ms Rotheroe also brings knowledge of fund governance,
manager selection and impact measurement.
David Bucknall
2,3
(Non-Executive Director)

Mr Bucknall is currently Chief
Executive Officer of the INEOS
Energy group of companies and
has been nominated as the Board
representative of INEOS Offshore BCS
Limited (“INEOS Energy”) pursuant to
the relationship and

INEOS Energy and the Company at launch. Mr Bucknall
brings a wealth of commercial experience through his role
held at INEOS Energy.

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Directors’ Report
The Directors present their report and accounts for the Company and Group

Strategic report
The Directors’ Report should be read in conjunction with the
.
Corporate governance
The Corporate Governance Statement on pages 
forms part of this report.
Legal and taxation status
The Company is an investment company within the

The Company conducts its affairs in order to meet the
requirements for approval as an investment trust under

has received approval as an investment trust and the
Company must meet eligibility conditions and ongoing
requirements in order for investment trust status to be
maintained. In the opinion of the Directors, the Company
has met the conditions and requirements for approval as an

Risk and risk management
The Principal Risks and Uncertainties for the Company and
their mitigation on pages  forms part of this report.
Viability statement
The Viability Statement is on page .
Market information
The Company’s Ordinary Shares are premium listed on
the London Stock Exchange (“LSE”). The NAV per Ordinary
Share is calculated in Pound Sterling.
Ordinary Share was calculated on a
daily basis based upon the quarterly valuation of the Private
Hydrogen Assets and daily valuation of the Listed Hydrogen

Share has been calculated on a quarterly basis based upon
the quarterly valuation of the Private Hydrogen Assets and
Listed Hydrogen Assets, the first quarterly NAV being as at
 The quarterly NAV per Ordinary Share is
published through a regulatory information service.
Retail distribution promotion
As a result of the Financial Conduct Authority (“FCA”) rules
determining which investment products can be promoted
to retail investors, certain investment products are classified

restrictions on their promotion to retail investors.
The Company has concluded that the distribution of its
shares, being shares in an investment trust, is not restricted
as a result of the FCA rules described above.
The Company currently conducts its affairs so that the
shares issued by the Company can be recommended by
financial advisers to retail investors and intends to continue
to do so for the foreseeable future.
Shareholder relations and Annual General
Meeting (AGM)
The Board encourages all shareholders to attend the AGM
and generally seeks to provide twenty one clear days’
notice of that meeting.
The Notice of AGM sets out the business of the AGM and
any special business is explained in the Directors’ Report
on pages . Separate resolutions are proposed
for each substantive issue. The Investment Adviser has a
programme of meetings with shareholders and reports back
to the Board on its findings. The Board also welcomes direct
feedback from shareholders. The Chairman is available to
meet shareholders and may be contacted by email via the

a May
 sets
out the arrangements for the meeting. Details of how
shareholders can cast their votes can be found in the
Notes to the Notice of Annual General Meeting on pages
 to . Shareholders will also have the opportunity to
hear a presentation from the Investment Adviser, and ask
questions of the Board and the Investment Adviser.
Special business of the AGM
Authority to issue and purchase own shares
The Board recommends that the Company be granted


Ordinary Shares in issue at the date of this document) and to

Shares and/or selling Ordinary Shares from treasury.
Ordinary resolution  and special resolution  will be put
to shareholders at the AGM. Ordinary Shares will be issued
under this authority only at the Board’s discretion and when
it is deemed to be in the best interests of shareholders as a
whole to do so. The advantages are to lower the Company’s
ongoing charges as expenses are diluted and, in the
short term, to address volatility in the share price. Unless
otherwise authorised by shareholders, new Ordinary Shares
will not be issued at less than NAV and Ordinary Shares
held in treasury will not be sold at less than NAV.
The maximum number of Ordinary Shares which can be
admitted to trading on the London Stock Exchange without


admission of the Ordinary Shares.
The Directors recommend that a new authority to purchase


at the date of the AGM are purchased) be granted and
special resolution  to that effect will be put to the AGM.

the Directors so determine, held in treasury. Ordinary Shares
are purchased at the discretion of the Board and when it is
deemed to be in the best interests of shareholders. Ordinary

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
Shares will be purchased for cancellation or for treasury
only when the Ordinary Shares are trading at a discount to
the Net Asset Value.

shares acquired by way of market purchases as treasury
shares, rather than having to cancel them. This gives the
Company the ability to sell Ordinary Shares quickly and cost
effectively, thereby improving liquidity and providing the
Company with additional flexibility in the management of its
capital base. At the year end and at the date of this report,
no Ordinary Shares were held in treasury.
Notice of General Meetings
Special resolution  in the notice to the AGM is required to
reflect the requirements of the Shareholder Rights Directive.
The Company is currently able to call general meetings,

like to preserve this ability. In order to be able to do so,
shareholders must have given their prior approval.
Special resolution  seeks such approval, which would be
effective until the Company’s next AGM, when it is intended
that a similar resolution will be proposed. The Company
will ensure that it offers the facility for shareholders to vote
by electronic means, and that this facility is accessible to

notice. Short notice of this kind will be used by the Board
only under appropriate circumstances.
Continuation vote
The Articles of Association require that an ordinary
resolution be proposed at every fifth AGM of the Company
that the Company should continue as an investment

Articles of Association, the initial vote for the continuation
of the Company will be proposed at the AGM to be

passed, the Directors are required to draw up proposals
for shareholders’ approval for the voluntary liquidation or
unitisation or other reorganisation of the Company, which
would require a special resolution of shareholders.
Articles of association
Amendments to the Company’s Articles of Association
require an Ordinary Resolution to be passed

Management
The Board
The independent Board is responsible to Shareholders for
the overall management of the Company. The Board has
adopted a Schedule of Matters Reserved for the Board
which sets out the division of responsibilities between
the Board and its various committees, the Chairman and
the Chairmen of the various committees, together with
the duties of the Board, further details can be found on
pages  and .
Through the Committees and the use of external
independent advisers, the Board manages risk and
governance of the Company.
Appointment of Board Members
The rules concerning the appointment of Directors are
contained in the Company’s Articles of Association which
require that a Director shall be subject to election at the first

Further details of the Board’s process for the appointment of
Board members can be found on page .
Alternative Investment Fund Manager (“AIFM”)
FundRock Management Company (Guernsey) Limited,
formerly known as Sanne Fund Management (Guernsey)
Limited, has been appointed as the Company’s and Limited
Partnership’s AIFM. The AIFM has delegated the provision of
portfolio management services to the Investment Adviser
pursuant to the Investment Adviser Agreement.
The AIFM Agreement shall continue in force until terminated
by either the AIFM or the Company by giving to the other
no less than six months’ prior written notice, provided that
such notice may not be served earlier than the date being
twelve months from the date of the AIFM Agreement. The
AIFM Agreement may be terminated earlier by either party
with immediate effect in certain circumstances, including, if
the other party shall go into liquidation or an order shall be
made or a resolution shall be passed to put the other party
into liquidation or the other party has committed a material
breach of any obligation the AIFM Agreement, and in the
case of a breach which is capable of remedy fails to remedy


The AIFM shall maintain, at its cost, professional indemnity
insurance to cover any professional liability which it may
incur under the AIFM Agreement, with a limit not less than

certain other indemnified parties, a customary indemnity
against losses which may arise in relation to the AIFM’s
performance of its duties under the AIFM Agreement.
The Board confirms that it has reviewed whether to retain
FundRock Management Company (Guernsey) Limited as
the AIFM of the Company. It has been concluded that it is
in the best interests of shareholders as a whole to continue
with the AIFM’s engagement.
Investment Adviser
The AIFM has appointed HydrogenOne Capital LLP as the
Investment Adviser. The Investment Adviser has been given
responsibility for investment advisory services in respect
of any Private Hydrogen Assets the Company invests in
directly or indirectly through holding entities and the Listed
Hydrogen Assets (including uninvested cash) in accordance
with the Company’s investment policy, subject to the
overall control and supervision of the AIFM. Details of the


FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022


Ordinary Shares in the Company.
The Limited Partnership has entered into a Limited


Partnership Investment Adviser Agreement”) between the
General Partner (in its capacity as general partner of the
Limited Partnership), the AIFM and the Investment Adviser,
pursuant to which the Investment Adviser has been given
responsibility for investment advisory services in respect
of the Private Hydrogen Assets in accordance with the
investment policy of the Limited Partnership, subject to the
overall control and supervision of the AIFM.
The Investment Adviser Agreements are for an initial term of
four years from the date of Admission and thereafter subject
to termination on not less than twelve months’ written
notice by any party. The Investment Adviser Agreements
can be terminated at any time in the event of, inter alia, the
insolvency of the Company, the AIFM or the Investment
Adviser or if certain key members of the Investment
Adviser’s team cease to be involved in the provision
of services to the Company and are not replaced by
individuals satisfactory to the Company (acting reasonably).
The Company and the Limited Partnership have given
an indemnity in favour of the Investment Adviser (subject
to customary exceptions) in respect of the Investment
Adviser’s potential losses in carrying on its responsibilities
under the Investment Adviser Agreement.
The Board confirms that it has reviewed whether to retain
HydrogenOne Capital LLP as the Investment Adviser of
the Company and the Limited Partnership. It has been
concluded that, given the Investment Adviser’s depth
of knowledge in the sector and the recent growth and
performance record of the Company, it is in the best
interests of shareholders as a whole to continue with the
Investment Adviser’s engagement.
Alternative Investment Fund Portfolio Managers’
Directive (“AIFMD”)
In accordance with the AIFMD, the AIFM must ensure that
an annual report containing certain information on the
Company is made available to investors for each financial
year. The investment funds sourcebook of the FCA (the
“Sourcebook”) details the requirements of the annual report.
All the information required by those rules are included
in this Annual Report or will be made available on the
Company’s website.
Company Secretary and Administrator
Apex Listed Companies Services (UK) Limited (formerly
Sanne Fund Services (UK) Limited), has been appointed to
provide company secretarial and administration services to
the Company.
Custodian
The Northern Trust Company has been appointed as the
Company’s custodian for the Listed Hydrogen Assets.
Registrar
Computershare Investor Services plc has been appointed
as the Company’s registrar.
Continuing appointment of service providers
The Board has committed to undertake a detailed review
of the continued appointment of these service providers on
an annual basis to ensure these are in the best long term
interests of the Company’s Shareholders and undertook
a comprehensive service provider review during the year

interest of shareholders to continue to engage the services
of the Company’s appointed service providers.
Capital structure and voting rights
At the year end and to the date of this report, the

Ordinary Shares, with no Ordinary Shares held in treasury.
Each Ordinary Share held entitles the holder to one vote.
All Ordinary Shares carry equal voting rights and there are
no restrictions on those voting rights. Voting deadlines are
stated in the Notice of Meeting and Form of Proxy and are

no restrictions on the transfer of Ordinary Shares, nor are
there any limitations or special rights associated with the

Directors’ Report

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
Political donations
There were no political donations made during the financial


The above rule requires listed companies to report certain
information in a single identifiable section of their annual
financial reports. The Company confirms that, other than




Future trends
Details of the main trends and factors likely to affect the
future development, performance and position of the
Company’s business can be found in the Investment
Adviser’s Report section of this Strategic Report. Further
details as to the risks affecting the Company are set out in
the ‘Principal Risks and Uncertainties’ on pages  to .
Directors’ indemnities

certain provisions contained in the deeds of indemnity
issued by the Company, the Company has indemnified
each of the Directors against all liabilities which each
Director may suffer or incur arising out of or in connection
with any claim made or proceedings taken against them,


of their negligence, default, breach of duty or breach
of trust, in relation to the Company or any associated
company. The indemnities would provide financial support
from the Company after the level of cover provided by the
Company’s Directors’ and Officers’ insurance policy has
been fully utilised.
Going concern
The Directors consider that it is appropriate to adopt the
going concern basis in preparing the Financial Statements.
Details of the Directors’ assessment of the going concern
status of the Company and Group, which considered the
adequacy of the Company and Group’s resources, the
, such as higher inflation and
interest rates that have occurred following the Russian


Auditor information
Each of the Directors at the date of the approval of this
report confirms that:
(i) so far as the Director is aware, there is no relevant audit
information of which the Company’s auditor is unaware;
and
(ii) the Director has taken all steps that he or she ought to
have taken as Director to make himself or herself aware
of any relevant information and to establish that the
Company’s auditor is aware of that information.
This confirmation is given and should be interpreted


Appointment of auditor


AGM on  MayKPMG Channel Islands
Limited (“KPMG”) as auditor.
By order of the Board
Brian Smith
For and on behalf of Apex Listed Companies Services (UK)
Limited Company Secretary




Company
Holding of
Ordinary
Shares – As at


% Holding –
As at


Holding of
Ordinary
Shares – As at


% Holding –
As at


INEOS Offshore BCS Limited    
Rathbone Investment Management International Ltd    
    
Stichting Juridisch Eigendom Privium Sustainable
Impact Fund
   
Investec Wealth & Investment Limited    
FS Wealth Management Limited    

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Corporate Governance
Introduction
This Corporate Governance statement forms part of the
Directors’ Report.
The Listing Rules and the Disclosure Guidance and
Transparency Rules of the UK Listing Authority require listed
companies to disclose how they have applied the principles
and complied with the provisions of The UK Corporate

Financial Reporting Council (“FRC”). The UK Code can be
viewed on the FRC’s website.
The Board has considered the principles and provisions

Code”) which addresses those set out in the UK Code, as
well as setting out additional provisions on issues that are of
specific relevance to the Company, as an investment trust.
The Board considers that reporting against the AIC
Code, which has been endorsed by the Financial
Reporting Council, provides more relevant information to
shareholders.
The AIC Code is available on the AIC website (www. theaic.
co.uk). It includes an explanation of how the AIC Code
adapts the Principles and Provisions set out in the UK Code
to make them relevant for investment companies.
The Company has complied with the AIC Code and the
relevant provisions of the UK Code, except as set out below.
The UK Code includes provisions relating to:
• 
• 
• 
The Board considers these provisions are not relevant to
the Company, being an externally managed investment
company with no employees. The Company has therefore
not reported further in respect of these provisions, other
than the need for an internal audit function specific to the
Company, which has been addressed on page .
The Board
Composition

Executive Directors. The Chairman is Simon Hogan, and
the Directors are Afkenel Schipstra, Abigail Rotheroe and
David Bucknall. Mrs Schipstra is the Chairman of the Audit
and Risk Committee and the Valuation Committee and Ms
Rotheroe is the Chairman of the Management Engagement
Committee and Remuneration Committee. Mr Hogan is
Chairman of the Nomination Committee. Due to the size
and nature of the Company’s business, the Board has

Director as the role can be performed by the Board as




 Mrs

The Board believes that during the year ended

investment company of the Company’s nature and size.
All of the Directors are independent of the Investment
Adviser and are able to allocate sufficient time to the
Company to discharge their responsibilities effectively. In

INEOS Energy and the Company, Mr Bucknall will recuse
himself from any decision relating to a transaction by the
Company or any member of the Group with INEOS Energy
or any of its Associates. The Board has noted the inference

Directors who represent a significant shareholder should be
presumed not to be independent. However, it is the Board’s
assessment that the provisions in place to manage actual
or potential situational conflicts of interest are sufficiently
robust and always promote the success of the Company.
The Board has concluded that Mr Bucknall continues to
demonstrate independence of character and judgement.
His skills and experience have added significantly to the
strength of the Board and his continued service is invaluable

have a broad range of relevant experience to meet the
Company’s requirements and their biographies are given on
page .
In line with the AIC Code and the Articles of Association,
each Director is subject to election at the first AGM following

shareholders. The Board recommends all the Directors for

The Directors have appointment letters which do not
provide for any specific term. Copies of the Directors’
appointment letters are available on request from the
Company Secretary. Upon joining the Board, any new
Director will receive an induction and relevant training is
available to Directors on an ongoing basis.
A policy of insurance against Directors’ and Officers’
liabilities is maintained by the Company.

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
The Directors, in the furtherance of their duties, may
take independent professional advice at the expense of

Board Committees
The Board decides upon the membership and chairmanship
of its committees. Each Committee has adopted formal
terms of reference, which are reviewed at least annually,


Audit and Risk Committee
A report on pages  provides details of the role and
composition of the Audit and Risk Committee together with
a description of the work of the Audit and Risk Committee in
discharging its responsibilities.
Remuneration Committee
All of the Directors, except Mr Bucknall, are members
of this Committee, and Ms Rotheroe is the Chairman.
The Remuneration Committee has been established to
meet formally on at least an annual basis to review the
remuneration policy of the Company and consider the fees

The Directors’ Remuneration Implementation Report is
included on pages 
Management Engagement Committee (“MEC”)
All of the Directors, except Mr Bucknall, are members of
the MEC, and Ms Rotheroe is the Chairman. The MEC has
been established to conduct a formal annual review of the
AIFM and the Investment Adviser, assessing investment
and other performance, the level and method of their
remuneration and the continued appointment of them as
AIFM and Investment Adviser to the Company. The MEC
met and reviewed the AIFM and Investment Adviser’s
performance and remuneration structure. In conclusion the
Committee’s recommendation to the Board was that it was
in the best interests of shareholders as a whole to continue
with their engagements and that the current management
fee structure remained appropriate. (See page  for

During the year, the MEC also conducted the first annual
detailed service review of the main service providers to the
Company and concluded that their continued appointment
remained in the best interest of shareholders.
Nomination Committee
All of the Directors, except Mr Bucknall, are members of this
Committee and Mr Hogan is the Chairman. The Nomination
Committee has been established for the purpose of
identifying and putting forward candidates for the office
of Director of the Company. The Nomination Committee
considers job specifications and assesses whether
candidates have the necessary skills and time available to
devote to the job. It also undertakes an annual performance
evaluation of the Board. An evaluation requiring the
Directors to complete detailed questionnaires on the
operation of the Board, its Committees and the individual
contribution of Directors as well as the performance of the
Chairman was undertaken during the year. The results of the
evaluation were reviewed by the Chairman and discussed
with the Board. Based upon the conclusions of the of the
most recent performance evaluation, which were positive
and demonstrated that the Directors showed the necessary
commitment for the effective fulfilment of their duties, the

elected or elected at the forthcoming AGM.
The Board succession plan is reviewed and maintained
through the Nomination Committee to promote regular
refreshment and diversity, whilst maintaining stability and
continuity of skills and knowledge on the Board.
Valuation Committee
All of the Directors, except Mr Bucknall, are members
of this Committee, and Mrs Schipstra is the Chairman.
The Valuation Committee has been established to meet
formally on at least a quarterly basis to formulate valuation
policies for investments of the Company, consider whether
independent valuation of the portfolio is required and
approve the valuations or valuation methodology of the
Private and Listed Hydrogen Assets. A summary of the
valuation of the Company’s investment portfolio is given on
page .

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Board diversity
Appointments are based on merit with due regard to the
benefits of diversity. The Board considers many factors,
including the balance of skills, knowledge, experience,
gender, ethnicity, cognitive and personal strengths when
reviewing its composition and appointing new Directors.
The aim of the policy is to identify those with the best range
of skills and experience to complement existing Directors
in order to provide effective oversight of the Company
and constructive support and challenge to the Investment
Adviser. Summary biographical details of the Directors,
including their relevant experience, are set out on page .


female representation and complies with the Hampton

although the Board has considered the recommendations

the Parker review, it does not consider it appropriate to
establish targets or quotas in these regards. The Company
has no employees. The Board is however mindful of the FCA

targets on board diversity. This new requirement applies to

and therefore the Company intends to report against these

Tenure policy
It is the Board’s policy that all Directors, including the
Chairman, shall normally have tenure limited to nine years
from their appointment to the Board, except that the
Board may determine otherwise if it is considered that
the continued participation on the Board of an individual
Director is in the best interests of the Company and its

election annually by shareholders. The Board considers
that this policy encourages regular refreshment and is
conducive to fostering diversity.
Internal control
The Board is responsible for establishing the Company’s
system of internal controls and for monitoring their
effectiveness. The system of internal controls is designed
to manage rather than eliminate the risk of failure to
achieve business objectives. It can provide only reasonable
assurance against material misstatement or loss. The Board,
through the Audit and Risk Committee, regularly reviews
the effectiveness of the internal control systems to identify,
evaluate and manage the Company’s significant risks. If any
significant failings or weaknesses are identified the Board,
and where required the Investment Adviser, ensure that
necessary action is taken to remedy the failings. Taking
into account the principal risks and uncertainties section
on pages  during the year, the Board – through the
Audit and Risk Committee – established the Company’s
risk management framework and controls. This identified a
detailed number of risks facing the Company and resulted
in enhanced risk documentation and reporting to the Board
and Audit and Risk Committee. Following its review, the
Board is not aware of any significant failings or weaknesses
arising in the year under review.
Meeting attendance
Board
Audit and Risk
Committee
Remuneration
Committee
Management
Engagement
Committee
Nomination
Committee
Valuation
Committee
Number of meetings held

     
Simon Hogan      
Afkenel Schipstra      
Abigail Rotheroe

     
David Bucknall

     
Caroline Cook

  – –  
Roger Bell

 – – – – 
1. Ms Rotheroe was appointed as a Non-Executive Director on 8 February 2022.
2. Mr Bucknall was appointed as a Non-Executive Director effective 20 May 2022. Mr Bucknall is not a member of the committees of the Board but attends
by invitation. He was unable to attend one Board meeting due to prior commitments following his appointment.
3. Mrs Cook and Mr Bell resigned effective 7 April 2022 and 4 May 2022 respectively.
In addition, a number of ad hoc Board and committee meetings were held to deal with administrative matters and the formal
approval of documents.
Corporate Governance

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
The Board believes that the existing arrangements,
including those set out below, represent an appropriate
framework to meet the internal control requirements. By
these procedures the Directors have kept under review the
effectiveness of the internal control system throughout the
year and up to the date of this report.
Financial aspects of internal control
These are detailed in the Report of the Audit and

Other aspects of internal control
The Board holds at least four regular meetings each
year, plus additional meetings as required. Between
these meetings there is regular contact with the
Investment Adviser and the Company’s Administrator and

The Administrator, Apex Listed Companies Services (UK)
Limited (formerly Sanne Fund Services (UK) Limited),
reports separately in writing to the Board concerning risks
and internal control matters within its remit, including
internal financial control procedures and company
secretarial matters. Additional ad hoc reports are received
as required and Directors have access at all times to the
advice and services of the Company Secretary, which is
responsible to the Board for ensuring that Board procedures
are followed and that applicable rules and regulations are
complied with.
The contact with the Investment Adviser, the AIFM and the
Administrator enable the Board to monitor the Company’s
progress towards its objectives and encompass an analysis
of the risks involved. The effectiveness of the Company’s
risk management and internal controls systems is
monitored regularly and a formal review, utilising a detailed
risk assessment programme, takes place at least annually.
This includes review of the internal controls reports of the
Administrator, the AIFM and the Registrar.
Principal risks
The Directors confirm that they have carried out a robust
assessment of the Company’s emerging and principal risks,
including those that would threaten its business model,
future performance, solvency or liquidity. The principal
risks and how they are being managed are set out in the
Strategic Report on pages 

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Directors’ Remuneration Policy
The remuneration policy (the “Policy”) must be put forward
for shareholder approval at its first AGM and thereafter
at a maximum interval of three years. The Policy was last

and will continue in force until the Annual General Meeting

apply until they are next submitted for shareholder approval.
In the event of any proposed material variation to the Policy,
shareholder approval will be sought for the proposed new
policy prior to its implementation. The Policy sets out the
principles the Company follows in remunerating Directors
and the result of the shareholder vote on the Policy is
binding on the Company. The Remuneration Committee
will take account of any views expressed by shareholders in
formulating this policy.

Company has no other employees.
Service contracts
The Directors do not have service contracts with the
Company. The Directors have appointment letters and,
following initial election by shareholders, are subject to

Fees
Directors’ fees are determined by the Board according to
their duties and responsibilities and by reference to the time
commitment required by each Director to carry out their
roles effectively. In setting fees, the Board also has regard
to the need to recruit and retain Directors with appropriate
knowledge and experience, the fees paid to Directors of
the Company’s peers and industry practice. Directors’ fees
are also subject to the aggregate annual limit set out in the
Company’s Articles of Association (the “Articles”), which is

the Articles can only be amended by an ordinary resolution
put to shareholders at a general meeting.
Directors are not eligible for bonuses, pension benefits,

or other benefits.
Directors’ fees are paid at fixed annual rates and do not
have any variable elements. Directors are also entitled to

incurred in performance of their duties. These expenses are
unlikely to be of a significant amount.
Fees are payable from the date of appointment as
a Director of the Company and cease on the date of
termination of appointment. Any new Directors will be paid
at the same rate as existing Directors. Directors are not
entitled to compensation for loss of office, and there is no
notice period upon early termination of appointment.
No incentive fees will be paid to any person to encourage
them to become a Director of the Company. The Company
may, however, pay fees to external agencies to assist
the Board in the search and selection of Directors or in
reviewing remuneration. Where a consultant is appointed,
the consultant shall be identified in the Annual Report
alongside a statement about any other connection it has
with the Company or individual Directors. No consultants
were appointed during the year. Independent judgement
will be exercised when evaluating the advice of external
third parties.
Statement of consideration of conditions
elsewhere in the Company
As stated above, the Company has no employees.
Therefore, the process of consulting with employees on the
setting of the Remuneration Policy is not applicable.
Review of the Policy
This Policy will be reviewed on an annual basis by the
Remuneration Committee and any changes approved
by the Board. As part of the review, the Remuneration
Committee will consider whether the Policy supports

consideration all relevant regulatory requirements.
Any material change to the Policy must be approved


The Policy is effective from the date of approval by
shareholders.
Current and future policy
Component  Purpose of reward Operation
Annual fee Chair of the Board For services as Chairman of a plc Determined by the Board
Annual fee Other Directors 
Directors of a plc
Determined by the Board
Additional fee Chair of the Audit
Committee
For additional responsibility and time
commitment
Determined by the Board
Expenses All Directors Reimbursement of expenses incurred
in the performance of duties
Submission of appropriate
supporting documentation

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
Directors’ Remuneration
Implementation Report


resolution for the approval of this Report will be put forward at the forthcoming AGM.
The Report is put forward for approval by shareholders on an annual basis. The result of the shareholder resolution on the

taken into account by the Board and the Remuneration Committee.
The law requires the Company’s auditor to audit certain of the disclosures provided. Where disclosures are audited they are
indicated as such. The auditor’s opinion is shown on pages 
Remuneration Committee




Director.




The Remuneration Committee believes that the level of fees appropriately reflects prevailing market rates for an investment
trust of the Company’s complexity and size, the increasing complexity of regulation and resultant time spent by the Directors
on matters, and will also enable the Company to attract appropriately experienced additional Directors in the future.

Name Role Fee
Simon Hogan Chair 
Afkenel Schipstra Chair of the Audit and Valuation Committees 
Abigail Rotheroe Chair of the Remuneration and Management Engagement Committee 
David Bucknall  –
The Remuneration Committee comprises the whole Board. Further detail on the duties of the Remuneration Committee can
be found in the Corporate Governance statement on page .

out in the Company’s Articles of Association.
Directors’ appointment letters and shareholding rights
The Directors have appointment letters which do not provide for any specific term. The Directors are not entitled to
compensation on loss of office. There are no restrictions on transfers of the Company’s Ordinary Shares held by the Directors
or any special rights attached to such shares.
Performance
The chart below shows the performance of the Company’s share price by comparison to the Solactive Hydrogen Economy
Index on a total return basis. The Company does not have a specific benchmark but has deemed the Solactive Hydrogen

revenue from clean Hydrogen.
Total return performance
HGEN Share Price vs NAV from date of listing to 
HGEN Share Price
//
//
//
// //
//
HGEN NAV SOLGHYD Index










//

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Directors’ emoluments for the year (Audited)
The Directors who served during the year received the following remuneration for qualifying services, commencing from the

after the Company’s
 
 
in Directors
remuneration
Fees
£
Taxable
benefits
£
Total
£
Fees
£
Taxable
benefits
£
Total
£
Simon Hogan  –   –  
Roger Bell

– – – – – – –
David Bucknall

– – – – – – –
Caroline Cook

    –  
Abigail Rotheroe

    –  –
Afkenel Schipstra

    –  
Total     –  –
1. Appointed as a Non-Executive Director on 1 October 2021 and resigned on 4 May 2022 and was not remunerated for his services.
2. Appointed as a Non-Executive Director on 20 May 2022 and is not remunerated for his services.
3. Appointed as a Non-Executive Director on 20 May 2021 and resigned on 7 April 2022.
4. Appointed as a Non-Executive Director on 8 February 2022 and appointed Chair of the Remuneration and Management Engagement Committees

5. Appointed as a Non-executive Director on 20 May 2021 and appointed Chair of the Audit and Valuation Committees 7 April 2022.
There are no other taxable benefits payable by the
Company other than certain expenses which may be
deemed to be taxable such as travel expenses. None of the
above fees were paid to third parties.
The following table sets out the total level of Directors’
remuneration compared to the distributions to shareholders
by way of dividends and share buybacks, and the
management fees and other expenses incurred by the

Statement of Comprehensive Income). The comparative
period is from the date of the Company’s incorporation





Spend on Directors’ fees  
Management fees and other
expenses
 
Dividends paid to shareholders – –
The disclosure of the information in the table above is

and Groups (Accounts and Reports) (Amendment)

and other expenses which have been included to show the
total operating expenses of the Company.
Directors’ holdings (Audited)

Directors had the following holdings in the Company. All
holdings were beneficially owned.
Ordinary
Shares at


Ordinary
Shares at


Simon Hogan  
David Bucknall – –
Abigail Rotheroe  
Afkenel Schipstra  
Statement


Groups (Accounts and Reports) (Amendment) Regulations

Remuneration Policy summarises, as applicable, for the year

 

remuneration made during the year; and

have been taken.
Abigail Rotheroe
Chair of the Remuneration Committee

Directors’ Remuneration
Implementation Report

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
Report of the Audit and Risk Committee
As Chairman of the Audit and Risk Committee (the “Committee”), I am pleased to present
the Committee’s report to shareholders for the year ended 31 December 2022.
The Audit and Risk Committee
Composition
All of the Directors, except David Bucknall, are members
of the Committee. In accordance with the UK Code, the
Chairman of the Board should not be a member. However,
the AIC Code permits the Chairman of the Board to be
a member of, but not chair the Committee if they were
independent on appointment – which the Chairman was
and continues to be. In view of the size of the Board, the
Directors feel it is appropriate for him to continue as a
member, so that the Committee can continue to benefit
from his experience and knowledge.
The members of the Committee consider that they have the
requisite skills and experience to fulfil the responsibilities of
the Committee. The Committee considers that at least one
of its members has recent and relevant financial experience
and competence relevant to the sector in which the
Company operates.
Role and responsibilities
The main role and responsibilities of the Committee are
set out in the Committee’s terms of reference. The terms
are updated annually and are available on the Company’s
website or on request from the Company Secretary.
The Committee meets formally at least twice a year for the
purpose, amongst other things, of advising the Board on
the appointment, effectiveness, independence, objectivity
and remuneration of the external auditor. The Committee
monitors the integrity of the Financial Statements of the
Company and any formal announcements relating to the
Company’s financial performance, reviewing significant
financial reporting judgements contained in them. The
Committee also reviews the Company’s risk management,
internal financial controls and internal control systems
and reviews the Investment Adviser’s whistleblowing

the auditor are reviewed against the Committee’s policy
described overleaf.
Meetings
There were three Committee meetings during the year

met the auditor, without any other party present, for a
private discussion and the Chairman of the Committee met
with the auditor prior to the Audit Committee meeting in


matters
The Committee reviewed the Financial Statements and
considered the following significant accounting matters in
relation to the Company’s Financial Statements for the year

Valuation of Private Hydrogen Assets investments
The Company’s investment through the Limited Partnership

substantial portion of the Company’s net assets and as
such is the biggest factor in relation to the accuracy of
the Financial Statements. The valuation of the Company’s
Private Hydrogen Assets held through the Limited
Partnership is the most material matter in the production of
the Financial Statements.
The Board has appointed a Valuation Committee which sets
out the valuation policies and process. The Committee met
four times during the year to review the valuations at each
quarter end date. The process includes considering and
approving valuations or valuation methodology made by
the Investment Adviser and provided to the AIFM, using fair
market valuations of the Listed and Private Hydrogen Assets


to calculate the fair value of the Private Hydrogen Assets
are based on IPEV Guidelines.
For Private Hydrogen Assets, as the Company typically
invests in early stage, pre or early revenue investments,
a number of valuation methodologies in line with IPEV
Guidelines have been considered and employed to value
the investments including Discounted Cash Flow and Price
of Recent Investment. The Valuation Committee reviewed
and approved the appropriateness of the valuation
methodology employed and the assumptions and made
in the calculation of the fair value of each of the Private
Hydrogen Assets. Details of the valuation methodology and
assumptions used for each of the Private Hydrogen Assets

Statements.
The Audit and Risk Committee reviewed, along with the
Valuation Committee, the procedures in place for ensuring
the appropriate valuation of investments and approved the
valuation of the Company’s Private Hydrogen Assets at the
year end with the Investment Adviser and AIFM.
Emerging risks
The Committee considered the risks and economic impacts
including higher inflation and interest rates arising from the
Russian invasion of Ukraine and secondary impacts from the

in operation and impact on the Company’s portfolio and
concluded that these had been properly reflected in

Financial Statements.
As part of the annual report review, the Committee:
• obtained assurances from the Investment Adviser and
the Administrator that the Financial Statements had been
prepared appropriately;

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HydrogenOne Capital Growth plc Annual Report 2022
• reviewed the consistency of, and any changes to,
accounting policies;
• reviewed the tax compliance of the Company during
the year with the eligibility conditions and ongoing
requirements in order for investment trust status to

• reviewed the Company’s financial resources and
concluded that it is appropriate for the Company’s
Financial Statements to be prepared on a going concern
basis as described in the Directors’ Report on page ;
• considered the risk to the Company from economic
conditions such as higher interest rates and inflationary
pressures and market volatility arising from the ongoing
war in Ukraine and secondary effects of the pandemic.
The Board and the Investment Adviser have reviewed the
investment portfolio and identified limited direct impact
on the portfolio but continue to monitor any impact to the
Company, the Group, its investee companies and overall
valuations; and
• concluded that the Annual Report for the year ended

understandable and provides the information necessary
for shareholders to assess the Company’s position
and performance, business model and strategy. The
Committee reached this conclusion through a process
of review of the document and enquiries to the various
parties involved in the production of the Annual Report,
and the external auditor’s report thereon.
The Committee reported the results of this work, including
its assessment that the Annual Report is fair, balanced and
understandable, to the Board.
External auditor
This year’s audit was the second conducted by KPMG
Channel Islands Limited (“KPMG”) and by David Alexander as
audit Director, since KPMG was selected as the Company’s
auditor at the Company’s launch and formal appointment

annually by the Audit and Risk Committee and the Board
and is subject to approval by Shareholders. In accordance
with the FRC guidance, the audit will be put out to tender
within ten years of the initial appointment of KPMG.
Additionally, the audit Director must be rotated every five


The Committee reviewed the audit planning and the
standing, skills and experience of the firm and the audit
team. The Committee also considered the independence
of KPMG and the objectivity of the audit process. KPMG has
confirmed that it is independent of the Company and has
complied with relevant auditing standards. No modifications
were required to the external audit approach. The Audit
Plan was presented to the Audit and Risk Committee at

commencement of the Company’s year end audit. The
Audit Plan set out the audit process, materiality scope and
significant risks. A presentation of the results of the audit
following completion of the main audit testing was provided

received feedback from the Investment Adviser and
Administrator regarding the effectiveness of the external
audit process.
The Committee is satisfied that KPMG has provided
effective independent challenge in carrying out its
responsibilities. After due consideration, the Committee
recommended the reappointment of KPMG and a resolution
will be put forward to the Company’s shareholders at the

Provision of non-audit services
The Committee has put in place a policy on the supply of


basis and may only be provided to the Company if such
services meet the requirements of the FRC’s Revised Ethical

cost; do not constitute a conflict of interest for the auditor;

KPMG LLP UK provided reporting accountant services
in respect of the Company’s secondary share issuances
including the share issuance Circular and Prospectus


LLP UK are a separate team independent of the audit team
and the audit team place no reliance on the output of the
reporting accountant services provided.
The Audit and Risk Committee does not believe that
the provision of these services affect the independence
of KPMG. The auditor has provided assurance that they
complied with the relevant UK professional and regulatory
requirements. Details of the fees paid in respect of reporting


Internal audit
The Audit and Risk Committee has considered the need
for an internal audit function and considers that this is not
appropriate given the nature and circumstances of the
Company as an externally managed investment company
with external service providers. The Audit and Risk
Committee keeps the need for an internal audit function
under periodic review.
Afkenel Schipstra
Audit and Risk Committee Chairman

Report of the Audit and Risk Committee

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
HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual
Report and the Group and Parent Company Financial
Statements in accordance with applicable laws

Company law requires the Directors to prepare Group and
Parent Company financial statements for each financial
year. Under that law they are required to prepare the Group

international accounting standards and applicable law and
have elected to prepare the parent Company financial
statements on the same basis.
Under company law the Directors must not approve the
Financial Statements unless they are satisfied that they give
a true and fair view of the state of affairs of the Group and
Parent Company and of the Group’s profit or loss for that
year. In preparing each of the Group and Parent Company
Financial Statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and estimates which are reasonable
relevant and reliable;
• state whether they have been prepared in accordance

• assess the Group and Parent Company’s ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern; and
• use the going concern basis of accounting unless
they either intend to liquidate the Group or the Parent
Company or to cease operations, or have no realistic
alternative but to do so.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Company’s transactions and which disclose with
reasonable accuracy at any time the financial position of
the Company and enable them to ensure that its financial

responsible for such internal control as they determine is
necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to
fraud or error, and have general responsibility for taking
such steps as are reasonably open to them to safeguard the
assets of the Group and to prevent and detect fraud and
other irregularities.
Under applicable law and regulations, the Directors are
also responsible for preparing a Strategic Report, Directors’
Report, Directors’ Remuneration Report and Corporate
Governance Statement that complies with that law and
those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website. Legislation in the UK governing
the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Responsibility statement of the Directors in
respect of the annual report
The Directors each confirm to the best of their

• the Financial Statements, prepared in accordance with
the applicable set of accounting standards, give a true
and fair view of the assets, liabilities, financial position
and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole; and
• the Strategic Report includes a fair review of the
development and performance of the business and the
position of the issuer and the undertakings included
in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that
they face.
The Directors consider the annual report and accounts,
taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders
to assess the Group’s position and performance, business
model and strategy.
For and on behalf of the Board
Simon Hogan
Chairman



HydrogenOne Capital Growth plc Annual Report 2022
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Independent auditor’s report
to the members of HydrogenOne Capital Growth plc

We have audited the parent and consolidated financial statements of HydrogenOne Capital Growth plc (the “Company” or
“Parent”) and its subsidiary (together, the “Group”), which comprise the parent and the consolidated statement of financial

equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory
information.

•

and the Company’s profit for the year then ended;
• are properly prepared in accordance with UK-adopted international accounting standards; and
• 
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our
responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate
basis for our opinion. Our audit opinion is consistent with our report to the Audit and Risk Committee.


independent of the Company and Group in accordance with UK ethical requirements including the FRC Ethical Standard as
applied to public interest entities. No non-audit services prohibited by that standard were provided.

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the parent
and consolidated financial statements and include the most significant assessed risks of material misstatement (whether or
not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team. We summarise below the key audit matters


our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the parent and
consolidated financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that
opinion, and we do not provide a separate opinion on these matters.


HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
Company Overview Strategic Report Governance Financial statements
Other information
Key audit matter The risk Our response
Valuation of Private
Hydrogen Assets held
through HydrogenOne
Capital Growth




Refer to the Report of the
Audit and Risk Committee

accounting policies), note

value through profit or

instruments and capital
disclosures).


Limited Partnership is carried at fair value
through profit or loss and represents a substantial
portion of the Group and Company’s net assets.

been determined as its net asset value, the most
significant component of which is its underlying
portfolio of non-controlling positions in unquoted


As Private Hydrogen Assets are unquoted and
illiquid, their fair values are determined through

application of valuation techniques requires
the exercise of judgements in relation to the
selection of the valuation technique employed
and the assumptions and data used in their
application.

Hydrogen Assets are valued, in accordance
with the International Private Equity and Venture

using the approach laid out in the valuation of



technique and the price of recent investment
(“PORI”), (the “Valuation Model”).


significant risk area of our audit given that they
represent a substantial portion of the Group and
Company’s net assets, and the selection and
application of valuation techniques requires the
exercise of judgements.

approach may also expose the valuation of
Private Hydrogen Assets to management bias.

through error as well as a potential for fraud
through possible management bias.

Control evaluation
We assessed the design and implementation
of the Valuation Committee’s review control in
relation to the valuation of Private Hydrogen
Assets.
Challenging management’s valuation approach
For each of the Private Hydrogen Assets, with the
support of our KPMG valuation specialist, we:
• held discussions with the Investment Adviser
to understand the valuation approach; and
• assessed and challenged the
appropriateness of the valuation approach
applied for compliance with IPEV.
Valuation Model integrity, inputs and
assumptions
For each of the Private Hydrogen Assets, we:
• tested the Valuation Model for mathematical
accuracy including but not limited to material
formula errors;
• corroborated material inputs used in
the Valuation Model to supporting
documentation; and
• with the support of our KPMG valuation
specialist, benchmarked the discount rate
and key macro-economic assumptions
applied in the Valuation Model to observable
market data and our KPMG valuation
specialist’s experience in valuing similar
investments.
Assessing disclosures
We considered the appropriateness of the Group
and Company’s investment valuation policies
and the adequacy of the Group and Company’s
disclosures in relation to the use of estimates and
judgements in arriving at fair value.
We assessed whether the disclosures around
the sensitivities to changes in key assumptions
reflect the risks inherent in the valuation of the
Private Hydrogen Assets.
Our results
As a result of our procedures, we found the
valuation of Private Hydrogen Assets and related
disclosures to be acceptable.


HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW



In line with our audit methodology, our procedures on individual account balances and disclosures were performed to
a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial
misstatements in individual account balances add up to a material amount across the parent and consolidated financial


our determination of performance materiality because we did not identify any factors indicating an elevated level of risk.

addition to other identified misstatements that warranted reporting on qualitative grounds.
Our audit of the Group and Company was undertaken to the materiality level specified above, which has informed our
identification of significant risks of material misstatement and the associated audit procedures performed in those areas as
detailed above.


intend to liquidate the Group or the Company or to cease their operations, and as they have concluded that the Group and

that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of
approval of the parent and consolidated financial statements (the “going concern period”).
In our evaluation of the directors’ conclusions, we considered the inherent risks to the Group and the Company’s business
model and analysed how those risks might affect the Group and the Company’s financial resources or ability to continue

financial resources or ability to continue operations over this period was the availability of capital to meet operating costs and
other financial commitments.
We considered whether this risk could plausibly affect the liquidity in the going concern period by comparing severe, but
plausible downside scenarios that could arise from this risk against the level of available financial resources indicated by the
Company’s financial forecasts.

full and accurate description of the directors’ assessment of going concern.
Our conclusions based on this work:
• we consider that the directors’ use of the going concern basis of accounting in the preparation of the parent and
consolidated financial statements is appropriate;
• we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to
events or conditions that, individually or collectively, may cast significant doubt on the Group and the Company’s ability to
continue as a going concern for the going concern period;
• we have nothing material to add or draw attention to in relation to the directors’ statement in the notes to the parent and
consolidated financial statements on the use of the going concern basis of accounting with no material uncertainties that
may cast significant doubt over the Group and the Company’s use of that basis for the going concern period, and that
statement is materially consistent with the parent and consolidated financial statements and our audit knowledge; and
• 
financial statements and our audit knowledge.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are
inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee
that the Group and the Company will continue in operation.
Independent auditor’s report


HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
Company Overview Strategic Report Governance Financial statements
Other information

Identifying and responding to risks of material misstatement due to fraud

incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
• enquiring of management as to the Group’s policies and procedures to prevent and detect fraud as well as enquiring
whether management have knowledge of any actual, suspected or alleged fraud;
• reading minutes of meetings of those charged with governance; and
• using analytical procedures to identify any unusual or unexpected relationships.
As required by auditing standards, and taking into account possible incentives or pressures to misstate performance and
our overall knowledge of the control environment, we perform procedures to address the risk of management override of
controls, in particular the risk that management may be in a position to make inappropriate accounting entries, and the risk
of bias in accounting estimates such as valuation of Private Hydrogen Assets. On this audit we do not believe there is a fraud
risk related to revenue recognition because the Group and Company’s revenue streams are simple in nature with respect to
accounting policy choice, and are easily verifiable to external data sources or agreements with little or no requirement for
estimation from management. We did not identify any additional fraud risks.
We performed procedures including:
• identifying journal entries and other adjustments to test based on risk criteria and comparing any identified entries to
supporting documentation;
• incorporating an element of unpredictability in our audit procedures; and
• assessing significant accounting estimates for bias
Further detail in respect of valuation of Private Hydrogen Assets is set out in the key audit matter section of this report.
Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the parent and
consolidated financial statements from our sector experience and through discussion with management (as required by
auditing standards), and from inspection of the Group’s regulatory and legal correspondence, if any, and discussed with
management the policies and procedures regarding compliance with laws and regulations. As the Group is regulated, our
assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for
complying with regulatory requirements.

financial reporting legislation and taxation legislation and we assessed the extent of compliance with these laws and
regulations as part of our procedures on the related financial statement items.

effect on amounts or disclosures in the parent and consolidated financial statements, for instance through the imposition of
fines or litigation or impacts on the Group and the Company’s ability to operate. We identified financial services regulation
as being the area most likely to have such an effect, recognising the regulated nature of the Group’s activities and its legal
form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to

regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material
misstatements in the parent and consolidated financial statements, even though we have properly planned and performed
our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and
regulations is from the events and transactions reflected in the parent and consolidated financial statements, the less likely
the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remains a higher risk of non-detection of fraud, as this may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect
material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect
non-compliance with all laws and regulations.




HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
other information included in the annual report, but does not include the parent and consolidated financial statements
and our auditor’s report thereon. Our opinion on the parent and consolidated financial statements does not cover the other
information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our parent and consolidated
financial statements audit work, the information therein is materially misstated or inconsistent with the parent and
consolidated financial statements or our audit knowledge. Based solely on that work:
• we have not identified material misstatements in the other information;
• 
the parent and consolidated financial statements; and
• 
Directors’ remuneration report



We are required to perform procedures to identify whether there is a material inconsistency between the directors’
disclosures in respect of emerging and principal risks and the viability statement, and the parent and consolidated financial
statements and our audit knowledge. We have nothing material to add or draw attention to in relation to:
• 
emerging and principal risks facing the Group, including those that would threaten its business model, future performance,
solvency or liquidity;
• the emerging and principal risks disclosures describing these risks and explaining how they are being managed or
mitigated;
• 
over what period they have done so and why they consider that period to be appropriate, and their statement as to
whether they have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities
as they fall due over the period of their assessment, including any related disclosures drawing attention to any necessary
qualifications or assumptions.

procedures, we have concluded that the above disclosures are materially consistent with the parent and consolidated
financial statements and our audit knowledge.

We are required to perform procedures to identify whether there is a material inconsistency between the directors’ corporate
governance disclosures and the parent and consolidated financial statements and our audit knowledge.
Based on those procedures, we have concluded that each of the following is materially consistent with the parent and
consolidated financial statements and our audit knowledge:
• the directors’ statement that they consider that the annual report and parent and consolidated financial statements taken
as a whole is fair, balanced and understandable, and provides the information necessary for shareholders to assess the
Group and Company’s position and performance, business model and strategy;
• the section of the annual report describing the work of the Audit and Risk Committee, including the significant issues that
the Audit and Risk Committee considered in relation to the financial statements, and how these issues were addressed; and
• the section of the annual report that describes the review of the effectiveness of the Group and Company’s risk
management and internal control systems.
We are required to review the part of Corporate Governance Statement relating to the Group and Company’s compliance
with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our review. We have nothing to
report in this respect.
Independent auditor’s report


HydrogenOne Capital Growth plc Annual Report 2022
FUTURE FUEL. NOW
Company Overview Strategic Report Governance Financial statements
Other information


• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches
not visited by us; or
• 
agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
We have nothing to report in these respects.

Directors’ responsibilities

and consolidated financial statements including being satisfied that they give a true and fair view; such internal control as
they determine is necessary to enable the preparation of parent and consolidated financial statements that are free from
material misstatement, whether due to fraud or error; assessing the Group and Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless
they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the parent and consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report.
Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of the parent and consolidated financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.





accept or assume responsibility to anyone other than the Company and its members, as a body, for our audit work, for this
report, or for the opinions we have formed.
David Alexander (Senior Statutory Auditor)
For and on behalf of KPMG Channel Islands Limited (Statutory Auditor)
Chartered Accountants
Guernsey


TEMPLATE
Financial
statements
 Parent and consolidated statement of comprehensive income
 Parent and consolidated statement of financial position
 Parent and consolidated statement of changes in equity
 Parent and consolidated statement of cash flows
 Notes to the parent and consolidated financial statements
FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
Parent and consolidated
statement of comprehensive income




Notes
Revenue

Capital

Total

Revenue

Capital

Total

Gains/(losses) on investments 4 –   –  
Gains on currency movements –   –  

(losses) –   –  
Income 5  -  – – –
    –  
Investment Adviser fee 6  –   – 
Other expenses 7      

      
Finance costs – – – – – –

taxation      
Taxation 8 – – – – – –

      

 12      
There is no other comprehensive income and therefore the ‘Profit/(loss) for the Year/Period’ is the total comprehensive








FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Parent and consolidated


Notes








 4  
Current assets
  
 9  
  
Total assets  

 10  
  
Net assets  
Equity
 11  
  
  
  
Total equity  
 13  




The following notes pages 

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview Strategic Report Governance Financial statements
Other information
Parent and consolidated
statement of changes in equity

Notes
Share
Capital

Share
premium
account

Capital
reserve

Revenue
reserve

Total

     
 11   – – 
 11 –  – – 
 – –   
     

Notes
Share
Capital

Share
premium
account

Capital
reserve

Revenue
reserve

Total

 – – – – –
 11   – – 
 –  – – 
Loss for the period – –   
     
The following notes pages 

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Parent and consolidated


Notes
Year ended



Period from
incorporation





Investment income  –
Management expenses  
Foreign exchange gains  
  
  
  

Purchase of investments  
  –
  

 11  
 11  
  
  
  –
  
The following notes pages 

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
HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information

Company information












Investment objective



Company structure
s


















Private Hydrogen Assets









FUTURE FUEL. NOW
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HydrogenOne Capital Growth plc Annual Report 2022


s





Listed Hydrogen Assets



does
Liquidity reserve


with the Company’s cash management policy)





Reporting entity





Due to the immaterial balances of the General Partner there is no material difference between the results of the Parent


Basis of accounting









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 





 


(ii 


(ii 






Accounting for the Limited Partnership







Accounting for the General Partner






FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Going concern









ion (period




 million and







Critical accounting judgements, estimates and assumptions

assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the





Judgements
Investment entity
















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HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
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Estimates
Investment valuations





Comparatives



New standards, interpretations and amendments adopted from 1 January 2022








• 
• 
• 



(a) Financial instruments




Financial assets are recognised in the Statement of Financial Position when the Company or Group become a party to the













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HydrogenOne Capital Growth plc Annual Report 2022
Financial liabilities are recognised in the Statement of Financial Position when the Company or Group become a party to the
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





Valuation of Listed Hydrogen Assets




Valuation of the Limited Partnership



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


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HydrogenOne Capital Growth plc Annual Report 2022
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






• 
• 
• 
• 

• 
• assumptions are

(b) Foreign currency
Functional and presentation currency



Transactions and balances




(c) Income



(d) Dividend payable


(e) Expenses



(f) Taxation









FUTURE FUEL. NOW
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HydrogenOne Capital Growth plc Annual Report 2022








(g) Segmental reporting












(h) Cash and cash equivalents



(i) Nature and purpose of equity and reserves:




• 
• 
• 

• 









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
HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information

(a) Summary of valuation






  
Limited Partnership  
  
(b) Movements in valuation
 
  –
  –
  –
  
  
  –
  
es  
  
  
(c) Gain/(loss) on investments
 
  
es  
Realised gains on   –
Total gain/(loss) on investments  



Level 1


Level 2



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
HydrogenOne Capital Growth plc Annual Report 2022
Level 3















  – – 
Limited Partnership – –  
 –  









  – – 
Limited Partnership – –  
 –  








Opening balance  –
  
  
Closing balance  









  
  
  



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HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information
either the DCF methodology or a
combination of the DCF

 of the Limited Partnership’s underlying were
determined as follows







  
 Germany 
Weighted
DCF and Price
of Recent
Investment
Discount rates applied in full
DCF valuation
Weighting between Price of
Recent Investment and
DCF valuation



Elcogen Group plc
United
Kingdom 
Weighted
DCF and Price
of Recent
Investment
Discount rates applied in full
DCF valuation
Weighting between Price of
Recent Investment and
DCF valuation



HiiROC Limited
United
Kingdom  DCF Discount rates 

Limited
United
Kingdom 
Weighted
DCF and Price
of Recent
Investment
Discount rates applied in full
DCF valuation
Weighting between Price of
Recent Investment and
DCF valuation




United
Kingdom 
Weighted
DCF and Price
of Recent
Investment
Discount rates applied in full
DCF valuation
Weighting between Price of
Recent Investment and
DCF valuation




Solutions Limited
United
Kingdom 
Weighted
DCF and Price
of Recent
Investment
Discount rates applied in full
DCF valuation
Weighting between Price of
Recent Investment and DCF
valuation



 Germany 
Weighted
DCF and Price
of Recent
Investment
Discount rates applied in full
DCF valuation
Weighting between Price of
Recent Investment and
DCF valuation



 Norway 
Weighted
DCF and Price
of Recent
Investment
Discount rates applied in full
DCF valuation
Weighting between Price of
Recent Investment and
DCF valuation




The
Netherlands 
Weighted
DCF and Price
of Recent
Investment
Discount rates applied in full
DCF valuation
Weighting between Price of
Recent Investment and
DCF valuation



 



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
HydrogenOne Capital Growth plc Annual Report 2022




Unobservable input 




Discount rates applied in full DCF
   n/a
  n/a
Weighting between Price of Recent

plus one calendar quarter of tapering
from Price of Recent Investment to
full DCF valuation  n/a
minus one calendar quarter of
tapering from Price of Recent
Investment to full DCF valuation  n/a




















  –
  –
  –

 













Investment Adviser fee  –   – 






Investment Adviser fee


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HydrogenOne Capital Growth plc Annual Report 2022
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
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Carried Interest Partner Fees
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
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




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HydrogenOne Capital Growth plc Annual Report 2022










  
  
Directors’ Fees  
Custodian Charges  
  
Registrar’s Fees  
Website Fees  –
Legal Fees  
LSE Fees  –
  
  
  
Printing Fees  –
  
Total revenue expenses  

Capital transaction costs  
Total expenses  






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



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





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HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information

(a) Analysis of charge in the year
 










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
 – – – – – –

period – – – – – –

 














before taxation      
      


 –   –  

utilised in year  –   – 
 –   – – –
 – – – – – –
 – – – – – –














Prepayments  
  
 

reclassified and included in ‘share issue
costs’ disclosed in the Statement of Changes in Equity when shares are issued or reclassified as abort costs in the Statement


FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022







  
 

 
 


(£) 


(£)
Brought forward   – –

 – –  
 – –  
Allotted/redeemed following admission

Ordinary Shares issued    
 – –  
    









• 

• 

• an other debtor and will
be reclassified and included in ‘share issue costs’ disclosed in the Statement of Changes in Equity when shares are issued
or reclassified as abort costs at the Circular and




FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information



 














      
      







  
Ordinary Shares in issue  
  


Directors


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







Simon Hogan  
  

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 –


– –


– –


 
 
 
 
 

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Investment Adviser




INEOS Energy





















Alternative Investment Fund Manager








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Administration and Company Secretarial services fee
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
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Custodian fee
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


Registrar fee






Risk Management Policies and Procedures










FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022

Market Risks
(i) Currency risk





 
Currency


















        
Euro        
        
        
        
        
 – –   – – 

Partnership’s non Pound Sterling
 s





(ii) Interest rate risk

Company and Group

and net assets of the Company and Group




FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information


 
















Assets
      
      


      


Partnership      
Total assets      

      
Total liabilities   –  
(iii) Price risk
Listed Hydrogen Assets








Private Hydrogen Assets



weighting of the
techniques employed
Key variable inputs of Private Hydrogen Assets



Selection of appropriate discount rates




FUTURE FUEL. NOW
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HydrogenOne Capital Growth plc Annual Report 2022
Selection of appropriate benchmarks



Selection of comparable companies




Application of valuation basis

DCF









Application of liquidity discount


Credit risk








  
  
  
  
Total  















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HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information





Liquidity risks




 














Assets


      

    –  
      
      
Total assets      

      
Total liabilities  –   – 
Operational risk














FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Capital Management Policies and Procedures











Subsidiary





 




HydrogenOne Capital Growth
(GP) Limited 
United
Kingdom
General
partner of
HydrogenOne
Capital Growth
Investments
 







FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information
Related entities


guarantee in place between the Company and the Limited Partnership in respect of margin requirements on the Limited
Partnership’s forward currency 
other 


















(%


 Electrolyser
producer
Germany    

Germany
Elcogen Group plc 
cell supply
United Kingdom    Hi



HiiROC Limited 
clean hydrogen
production
technology
United Kingdom    



Limited
Printed Circuit
Board fuel cell
solutions
United Kingdom    



 
of mobile
hydrogen
storage and
refueling
systems
United Kingdom    



Solutions Limited
Aviation
design and
maintenance
United Kingdom    



 
of green
electrolysis and
energy storage
facilities
Germany    


 Green
Hydrogen
development
Norway    

 
thermoplastic
composite pipe
The
Netherlands
   


FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022


















(%


 Electrolyser
producer
Germany    

Germany
HiiROC Limited 
clean hydrogen
production
technology
United Kingdom    


 
of mobile
hydrogen
storage and
refuelling
systems
United Kingdom    Abraham Heights


















Strategic Report Governance Financial statements Other information
HydrogenOne Capital Growth plc Annual Report 2022
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Other
information
 Alternative Performance Measures
 Glossary
 Directors and advisers
 Report of the Alternative Investment Fund Manager
 Notice of Annual General Meeting
 Notes to the notice of Annual General Meeting

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HydrogenOne Capital Growth plc Annual Report 2022

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
HydrogenOne Capital Growth plc Annual Report 2022
Alternative Performance Measures (“APM”)
APMs are often used to describe the performance of investment companies although they are not specifically defined under
IFRS. APM calculations for the Company are shown below.
(Discount)/Premium
The amount, expressed as a percentage, by which the share price is less/more than the Net Asset Value per Ordinary Share.
 Page  
NAV per Ordinary Share (pence) a   
Share price (pence)    
   
Ongoing charges
A measure, expressed as a percentage of average net assets during the year, of the regular, recurring annual costs of running
an investment company.
 Page  
Average NAV a n/a  
Annualised expenses  n/a  
   
The ongoing charges percentage is on a consolidated basis and therefore takes into consideration the expenses of the
Limited Partnership as well as the Company and is calculated in accordance with the methodology set out by the AIC. The


Total return
A measure of performance that includes both income and capital returns. This takes into account capital gains and
reinvestment of dividends paid out by the Company into the Ordinary Shares of the Company on the ex-dividend date.
 Page Share price

NAV

 a n/a  
 b   
   
1. Share price total return is based on an opening share price of 119.50p.
2. NAV total return is based on an opening NAV of 95.75p per Ordinary Share.
3.. N/a = not applicable.
 Page Share price

NAV

 a n/a  
 b   
   
1. Share price total return is based on an opening share price of 100p.
2. NAV total return is based on an opening NAV after launch expenses of 98.0p per Ordinary Share.
3.. N/a = not applicable

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HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information
Glossary
 First admission of the Company’s Ordinary Shares to the London Stock Exchange on

AIC Association of Investment Companies.


An investment vehicle under AIFMD. Under AIFMD (see below) HydrogenOne Capital
Growth plc is classified as an AIF.



implemented in the UK.
 A meeting held once a year which shareholders can attend and where they can vote on
resolutions to be put forward at the meeting and ask the Directors questions about the
company in which they are invested.
 HydrogenOne Capital Growth plc (“HGEN”).
 An entity that is appointed to safeguard a company’s assets.
 The amount, expressed as a percentage, by which the share price is less/more than the
net asset value per share.
 Income receivable from an investment in shares.
 The date from which you are not entitled to receive a dividend which has been declared
and is due to be paid to shareholders.
 Environmental, Social and Governance (“ESG”) criteria are a set of standards for
a company’s operations that socially conscious investors use to screen potential
investments. Environmental criteria consider how a company performs as a steward of
nature. Social criteria examine how it manages relationships with employees, suppliers,
customers, and the communities where it operates. Governance deals with a company’s
leadership, executive pay, audits, internal controls, and shareholder rights.


The independent body that regulates the financial services industry in the UK.
 The Cooperation Council for the Arab States of the Gulf, also known as the Gulf
Cooperation Council.
 Greenhouse Gases.
 The aggregate value of the total assets of the Company, including the gross asset value
of any investments held in the HydrogenOne Partnership attributable to the Company’s
interest in the HydrogenOne Partnership on a look-through basis from time-to-time,
calculated in accordance with the Company’s valuation policy.
 A basket of stocks which is considered to replicate a particular stock market or sector.
 A company formed to invest in a diversified portfolio of assets.
 An investment company which is based in the UK and which meets certain tax
conditions which enables it to be exempt from UK corporation tax on its capital gains.
The Company is an investment trust.
 The extent to which investments can be sold at short notice.
 Investments in quoted or traded Hydrogen Assets, which will predominantly be equity
securities but may also be corporate debt and/or other financial instruments.


An investment company’s assets less its liabilities.

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HydrogenOne Capital Growth plc Annual Report 2022
 Net assets divided by the number of Ordinary Shares in issue (excluding any shares held
in treasury).
 A purchaser of electricity and/or renewable obligation.
 The Company’s ordinary shares in issue.
 A collection of different investments held in order to deliver returns to shareholders and
to spread risk.
 Investments in unquoted Hydrogen Assets, which may be operational companies or
hydrogen projects (completed or under construction).
 Measurement of returns relative to an index.
 A purchase of a company’s own shares. Shares can either be bought back for
cancellation or held in treasury.
 The price of a share as determined by a relevant stock market.
 A company’s own shares which are available to be sold by a company to raise funds.
 A measure of how much a share moves up and down in price over a period of time.
Glossary

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
HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information
Directors and advisers
Directors (all Non-Executive)
(Chairman)



Administrator and Company Secretary

(formerly Sanne Fund Services (UK) Limited)


London

Alternative Investment Fund Manager (AIFM)



Royal Avenue
St Peter Port
Guernsey

Broker


London

Solicitors to the Company


London




London



Investment Adviser


London

Custodian



London

Registrar

The Pavilions



Independent Auditor

Glategny Court
Glategny Esplanade
Guernsey


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HydrogenOne Capital Growth plc Annual Report 2022
Report of the Alternative Investment
Fund Manager
Material change
FundRock Management Company (Guernsey) Limited (formerly Sanne Fund Management (Guernsey) Limited) as AIFM) must
disclose in the Annual Report, details of material changes to the information set out under AIFMD. For these purposes, there
are no material changes effective during the period to be noted to the information set out in the Prospectus.
Remuneration disclosures
The Company is categorised as an EU Alternative Investment Fund (“AIF”). The AIFMD seeks to regulate managers of AIFs,
such as the Company. It imposes obligations on AIFMs who manage AIFs in a member state of the European Economic
Area (“EEA state”), or who market shares in AIFs to investors who are domiciled, or with a registered office, in an EEA state.
Under the AIFMD, an AIFM must be appointed and must comply with various organisational, operational and transparency
requirements.

Management (Guernsey) Limited) to act as AIFM to the Company. FundRock Management Company (Guernsey) Limited is
responsible for fulfilling the role of the AIFM and ensuring the Company complies with the AIFMD requirements. Details of
the total amount of remuneration for the financial year, split into fixed and variable remuneration, paid by the AIFM to its staff,
and the number of beneficiaries, are made available to Shareholders on request.

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HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information
Notice of Annual General Meeting
Annual General Meeting


Notice of Meeting

am for the following purposes:


 
 
 To re-elect Simon Hogan as a Director of the Company.
 To re-elect Afkenel Schipstra as a Director of the Company.
 To re-elect Abigail Rotheroe as a Director of the Company.
 
 To reappoint KPMG Channel Islands Limited as auditor to the Company.
 To authorise the Directors to fix the remuneration of the auditor until the conclusion of the next Annual General Meeting
of the Company.
 That
  
“Act”) to allot shares in the Company, or to grant rights to subscribe for or convert any security into shares in the

value of the Company’s issued share capital (excluding treasury shares) on the date on which this resolution is
passed; and
b. the authority given by this resolution:
   
ii. unless renewed, revoked or varied in accordance with the Act, shall expire at the conclusion of the Annual

of passing of this resolution save that the Company may, before such expiry, make any offer or enter into an
agreement which would or might require the allotment of shares in the Company, or the grant of rights to
subscribe for or to convert any security into shares in the Company, after such expiry and the Directors may allot
shares in the Company or grant rights to subscribe for or to convert any security into shares in the Company in
pursuance of such an offer or agreement as if such authority had not expired.

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HydrogenOne Capital Growth plc Annual Report 2022
 



a. shall be limited to the allotment of equity securities or the sale of treasury shares up to an aggregate nominal

capital (excluding treasury shares) on the date on which this resolution is passed;
  
c. shall expire at the same time as the Allotment Authority, save that the Company may, before expiry of the power
conferred on the Directors by this resolution, make an offer or agreement which would or might require equity
securities to be allotted or treasury shares to be sold after such expiry and the Directors may allot equity securities
or sell treasury shares in pursuance of such an offer or agreement as if such power had not expired.
 


  

this meeting);
  
c. the maximum price (excluding expenses) which may be paid for an Ordinary Share is not more than the higher

immediately before the day on which it purchases that share and (ii) the higher of the price of the last independent
trade and the highest current independent bid for the Ordinary Shares;
  

such time; and
e. the Company may make a contract to purchase Ordinary Shares under the authority hereby conferred prior to the
expiry of such authority, which will or may be executed wholly or partly after the expiration of such authority and
may make a purchase of Ordinary Shares pursuant to any such contract.
 T
days’ notice, provided that this authority shall expire at the conclusion of the Company’s next Annual General Meeting
after the date of the passing of this resolution.


For and on behalf of Apex Listed Companies
Services (UK) Limited
Company Secretary




London

Notice of Annual General Meeting

FUTURE FUEL. NOW

HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information
Website address
 
available from www.hydrogenonecapitalgrowthplc.com.
Entitlement to attend and vote
 am on 
am on the day two days prior to the adjourned meeting, shall be entitled to vote at the
meeting.
Appointment of Proxies
 
place It is recommended that shareholders appoint the ‘Chairman of the Meeting’ as their proxy where possible. If you

electronic proxy appointment service. In the case of joint members, only one need sign the Form of Proxy. The vote
of the senior joint member will be accepted to the exclusion of the votes of the other joint members. For this purpose,
seniority will be determined by the order in which the names of the members appear in the register of members in
respect of the joint shareholding.
 
 

withheld. It should be noted that a vote withheld is not a vote in law and will not be counted in the calculation of the
proportion of votes ‘For’ and ‘Against’ a resolution. If you do not indicate how your proxy should vote, he/she can exercise
his/her discretion as to whether, and if how so how, he/she votes on each resolution, as he/she will do in respect of any
other business (including amendments to resolutions) which may properly be conducted at the meeting.
Appointment of proxy
 
• by logging on to www.investorcentre.co.uk/eproxy and following the instructions;
• by completing a hard copy form of proxy that accompanies this annual report; or
• in the case of CREST members, by utilising the CREST electronic proxy appointment service in accordance with the
procedures set out below.
In order for a proxy appointment to be valid a form of proxy must be completed. In each case the form of proxy must be

am on 
Appointment of Proxy through CREST
 CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may
do so for the meeting to be held on the above date and any adjournment(s) thereof by using the procedures described
in the CREST Manual. CREST Personal Members or other CREST sponsored members, and those CREST members who
have appointed a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be
able to take the appropriate action on their behalf.
In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST
message (a “CREST Proxy Instruction”) must be properly authenticated in accordance with Euroclear UK & International
Limited’s specifications and must contain the information required for such instructions, as described in the CREST
Manual. The message, regardless of whether it constitutes the appointment of a proxy or an amendment to the
instruction given to a previously appointed proxy, must, in order to be valid, be transmitted so as to be received by the

For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the
message by the CREST Applications Host) from which the Company’s agent is able to retrieve the message by enquiry
to CREST in the manner prescribed by CREST. After this time any change of instructions to a proxy’s appointee through
CREST should be communicated to the appointee through other means.
CREST members and, where applicable, their CREST sponsors or voting service providers should note that Euroclear
UK & International Limited does not make available special procedures in CREST for any particular messages. Normal
system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions.
Notes to the notice of
Annual General Meeting

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
HydrogenOne Capital Growth plc Annual Report 2022
Notes to the notice of
Annual General Meeting
It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member
or sponsored member or has appointed a voting service provider(s), to procure that this CREST sponsor or voting service
provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST
system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or
voting service providers are referred, in particular, to those sections of the CREST Manual concerning practical limitations
of the CREST system and timings.
 

All messages relating to the appointment of a proxy or an instruction to a previously appointed proxy, which are
am on 



Appointment of a proxy through Proxymity
 If you are an institutional investor you may be able to appoint a proxy electronically via the Proxymity platform, a process
which has been agreed by the Company and approved by the Registrar. For further information regarding Proxymity,


to Proxymity’s associated terms and conditions. It is important that you read these carefully as you will be bound by
them and they will govern the electronic appointment of your proxy. Proxymity will then contract with your underlying
institutional account holder directly to accept their vote instructions through the platform.
Termination of proxy appointments
 In order to revoke a proxy instruction, you will need to inform the Company. Please send a signed hard copy notice
clearly stating your intention to revoke your proxy appointment to by Computershare Investor Services PLC, The


signature on its behalf by an officer or attorney whose power of attorney or other authority should be included with the
revocation notice.
 
then, subject to the paragraph directly below, your proxy will remain valid.
If you submit more than one valid proxy appointment in respect of the same Ordinary Shares, the appointment received
last before the latest time for receipt of proxies will take precedence.
Nominated persons
 
• 
to have information rights (Relevant Member) to be appointed or to have someone else appointed as a proxy for

• If you either do not have such a right or if you have such a right but do not wish to exercise it, you may have a right
under an agreement between you and the Relevant Member to give instructions to the Relevant Member as to the
exercise of voting rights.
• 
your custodian or broker) and you should continue to contact them (and not the Company) regarding any changes or
queries relating to your personal details and your interest in the Company (including any administrative matters). The
only exception to this is where the Company expressly requests a response from you.
If you are not a member of the Company but you have been nominated by a member of the Company to enjoy information
rights, you do not have a right to appoint any proxies under the procedures set out in the notes to the form of proxy.

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
HydrogenOne Capital Growth plc Annual Report 2022
Company Overview
Strategic Report Governance Financial statements
Other information
Questions at the meeting
 
business being dealt with at the meeting unless:
• answering the question would interfere unduly with the preparation for the meeting or involve the disclosure of
confidential information;
• the answer has already been given on a website in the form of an answer to a question; or
• it is undesirable in the interests of the Company or the good order of the meeting that the question be answered.
Issued Shares and total voting rights
 

Shares who (being an individual) is present by a person, by proxy or (being a corporation) is present by a duly authorised
representative, not being himself a member, shall have one vote. On a poll every holder of Ordinary Shares who is
present in person or by proxy shall have one vote for every Ordinary Share held by him.
Communication
 Except as provided above, members who have general queries about the meeting should use the following means of
communication (no other methods of communication will be accepted):
• 

by the caller’s service provider. Calls may be recorded and monitored randomly for security and training purposes);
• in writing to Computershare.

the Form of Proxy for this meeting) to communicate with the with the Company for any purposes other than those


Contents
hydrogenonecapitalgrowthplc.com
Company overview

About us
 Highlights
 Portfolio at a glance
 Chairman’s statement
Strategic report

The role of clean hydrogen in the energy transition
 Investment objective, policy, process and strategy
 Business model and KPIs
 Investment Adviser’s Report
 Introduction
 Portfolio summary
 Portfolio review, performance and valuation
 Market commentary and outlook
 Environmental, Social and Governance
 Introduction from the Chair
 ESG highlights and our impact
 Metrics and methodology
 Strategy
 
 ESG policy
 ESG KPIs
 HydrogenOne’s approach to ESG
 Case Study – Strohm
 Case Study – Thierbach project
 ESG credentials
 Stakeholder engagement (Section 172 Statement)
 Risk and risk management
Governance

Board of Directors
 Directors’ Report
 Corporate Governance
 Directors’ Remuneration Policy
 Directors’ Remuneration Implementation Report
 Report of the Audit and Risk Committee
 Statement of Directors’ Responsibilities
 Independent Auditor’s Report


Parent and consolidated statement of comprehensive income
 
 Parent and consolidated statement of changes in equity
 
 
Other Information

Alternative Performance Measures
 Glossary
 Directors and advisers
 Report of the Alternative Investment Fund Manager
 Notice of Annual General Meeting
 Notes to the notice of Annual General Meeting

hydrogenonecapitalgrowthplc.com
HydrogenOne
Capital Growth plc

