Octopus Renewables Infrastructure Trust: A Bright Spot in the Green Energy Sector

Octopus Renewables Infrastructure Trust plc (ORIT) has emerged as a beacon of innovation and sustainability in the renewable energy sector, offering investors a compelling opportunity to participate in the global transition to net-zero carbon emissions. With a market capitalisation of £455.6 million and a portfolio diversified across various renewable energy technologies, countries, and development stages, ORIT presents a robust and well-rounded investment case.



ORIT's investment in HYRO Energy Limited, a joint venture focused on developing green hydrogen electrolysis projects in England, Scotland, and Wales, aligns perfectly with the UK's decarbonisation ambitions. HYRO's strategy targets the construction of 10 GW of low carbon hydrogen capacity by 2030, with at least 5 GW of that target being green. ORIT's investment in HYRO marks its fourth developer investment and provides potential value for the future expansion of its proprietary pipeline.

The long-term benefits for ORIT shareholders include:

1. Diversification: Investing in green hydrogen adds technological diversification to ORIT's portfolio, reducing the risk of losses through robust governance structures, rigorous due diligence, risk analysis, and asset optimisation activities.
2. Contribution to net zero: By investing in green hydrogen, ORIT enables its investors to contribute to the 'Just Transition', encouraging wider and fairer distribution of benefits as the world switches to clean energy.
3. Potential for significant returns: Green hydrogen is expected to become a critical part of the energy transition, and ORIT's investment in HYRO provides the potential for significant returns as the green hydrogen sector grows.
4. Alignment with government targets: By supporting the UK's decarbonisation ambitions, ORIT's investment in HYRO may attract favourable regulatory treatment and potential government support.
5. Access to new markets: Investing in green hydrogen opens up access to new markets, such as hard-to-electrify industries where green hydrogen will be the fuel of the future.



ORIT mitigates risks associated with the green hydrogen investment by diversifying its portfolio and partnering with experienced companies. Key milestones to monitor for HYRO's success include:

1. Diversification: ORIT's investment in HYRO represents a small portion of its overall portfolio, which is diversified across different renewable energy technologies, countries, and development stages. This diversification helps to mitigate risks associated with any single investment, including those in emerging sectors like green hydrogen.
2. Experienced partners: HYRO is a joint venture between ORIT, another fund managed by Octopus Energy Generation, Sky, and Renewable Energy Systems (RES). RES brings decades of renewable development experience, while Octopus Energy Generation has strong relationships with potential industrial end-users of green hydrogen. These partnerships help to mitigate risks by leveraging the expertise and networks of established players in the industry.
3. Government support: HYRO's initial pipeline projects have been included on the UK government's shortlist for the first round of allocations to receive ongoing revenue support under the Hydrogen Production Business Model. Monitoring the progress of these projects and the government's support for the sector will be crucial for assessing HYRO's success.
4. Milestones for HYRO's success:
* Securing planning permission and building permits for its first Solar + co-located battery project.
* Reaching Ready-to-Build status by 2025, as previously announced.
* Progress in the development of approximately 700 MW of green hydrogen electrolysis capacity by 2030.
* Securing contracts for the successful projects under the Hydrogen Production Business Model in 4Q23.
* Attracting further development funding and preferential rights to fund the construction of electrolyser projects for ORIT and Sky.

By monitoring these milestones and maintaining a diversified portfolio, ORIT can effectively manage risks associated with its investment in the green hydrogen sector.



In conclusion, Octopus Renewables Infrastructure Trust plc (ORIT) offers investors a compelling opportunity to participate in the global transition to net-zero carbon emissions, with its investment in HYRO Energy Limited being a prime example of its commitment to innovation and sustainability. By diversifying its portfolio and partnering with experienced companies, ORIT effectively mitigates risks associated with its investment in the green hydrogen sector, providing shareholders with the potential for significant returns as the green hydrogen sector grows.