Nanofilm Technologies International plans to pay $15 million to buy out the 35% stake held by partner Temasek Holdings in a hydrogen-focused joint venture.

 

Sydrogen Energy, as this joint venture is called, was formed in July 2021. Temsaek holds its stake via an entity called Venezio Investments.

 

According to Nanofilm in a July 5 announcement, taking over the partner' s stake will give it " enhanced management control" over Sydrogen' s operations and strategic direction.

 

" This transaction underscores Nanofilm&rsquo s long-term conviction in the hydrogen economy and its growth potential," says Nanofilm.

 

According to Nanofilm, Sydrogen Energy has " rapidly gained traction" in key markets, including China.

 

For example, its high-performance SydroDIAMOND coatings and its newly launched SydroPEARL solution for electrolysers are products " aligned with growing global demand for durable, cost-efficient hydrogen solutions."

 

Under the JV agreement announced back in July 2021, Nanofilm' s total initial investment in Sydrogen was up to $140 million.

 

The investment comprised of cash contribution of up to $21 million by Nanofilm and the transfer of its hydrogen energy business and licence of its intellectual property relating to the business for a 65% stake, with Temasek contributing cash for its 35% share of the JV.

 

The completion of this deal will take place in two tranches.

 

The first tranche, constituting 11.67% of Sydrogen Energy&rsquo s existing share capital, is scheduled for completion in November 2025.

 

The second tranche, constituting the remaining 23.33% of Sydrogen Energy shares held by Venezio, is due for completion in Nov 2026.

 

The transaction is subject to the approval of Nanofilm' s shareholders.

 

" The full acquisition represents a significant step in strengthening our position in the hydrogen energy sector," says Shi Xu, executive chairman and group CEO of Nanofilm.

 

" By making Sydrogen Energy a wholly owned subsidiary, we can better align its activities with our broader corporate strategy and accelerate innovation in sustainable energy solutions," he adds.

 

Gian Yi-Hsen, CEO of Sydrogen Energy, says that with this transaction, Sydrogen Energy would have greater flexibility to move quickly and capture new opportunities across the hydrogen value chain.

 

" As a Singapore-headquartered company with strong industrial foundations, Sydrogen Energy is uniquely positioned to serve as a key contributor to Asia&rsquo s hydrogen innovation hubs while also serving developments across the globe &mdash capturing opportunities in markets such as China and the Singapore maritime market," he adds.

 

In its 1QFY2025 business update for the quarter ended March 30, Sydrogen posted a 158% y-o-y growth in revenue, to account for 1% of Nanofilm' s total revenue, which is made up mainly by providing coating services to consumer electronics makers.