Igneo Infrastructure Partners secures 50% stake in Höegh Evi amid push for clean energy innovation

Höegh Evi Ltd., a recognised global leader in floating energy solutions, has announced an agreement for Igneo Infrastructure Partners to acquire a 50% ownership stake in the company. The stake is being purchased from funds managed by Morgan Stanley Infrastructure Partners (MSIP), which has played a pivotal role in Höegh Evi’s rise as a market leader in liquefied natural gas (LNG) infrastructure. Aequitas Limited, the company’s other key stakeholder, will retain its 50% shareholding, reaffirming its long-term commitment to Höegh Evi’s continued growth.

This acquisition signals a significant step forward for Höegh Evi as it expands its offerings beyond LNG to include clean energy infrastructure such as ammonia, hydrogen, and carbon solutions. The deal also reinforces Igneo’s strategic focus on sustainable energy investment and innovation.

What Does This Acquisition Mean for Höegh Evi’s Future?

Höegh Evi Chairman Morten W. Høegh highlighted the transformative potential of this new partnership. He credited MSIP with strengthening the company’s leadership in LNG infrastructure during a critical period when energy security in Europe took centre stage. Now, with Igneo’s extensive expertise in sustainable energy infrastructure, Höegh Evi aims to accelerate its expansion into clean energy solutions.

According to Høegh, the collaboration aligns with the company’s vision of transitioning from LNG leadership to becoming a driving force in the global energy transition. The move represents Höegh Evi’s commitment to leveraging its legacy in floating storage and regasification units (FSRUs) while embracing new technologies that support renewable energy solutions.

How Höegh Evi is Leading the Energy Transition

Höegh Evi has spent over 50 years at the forefront of floating energy solutions. With a diverse fleet of FSRUs, the company has helped countries import natural gas efficiently, contributing to global energy security. Now, Höegh Evi is pivoting toward clean energy infrastructure, focusing on floating terminals for ammonia and hydrogen, along with innovative solutions for carbon capture and storage.

One of the company’s most ambitious projects is the development of the world’s first floating ammonia-to-hydrogen cracker, which will play a crucial role in enabling the hydrogen economy. Additionally, its new infrastructure projects aim to facilitate sustainable carbon transport and permanent storage, addressing the critical need for carbon neutrality in global industries.

These initiatives underscore Höegh Evi’s ability to adapt and respond to changing energy needs, positioning the company as a critical enabler in the global transition to renewable energy sources.

Why Igneo Infrastructure Partners Invested in Höegh Evi

Niall Mills, Managing Partner and Global Head of Igneo Infrastructure Partners, expressed enthusiasm for the partnership, describing Höegh Evi as a market leader in floating energy solutions and a pioneer in energy transition technologies. He stressed that Igneo is committed to long-term investment in energy transition infrastructure and believes Höegh Evi’s innovative approach aligns perfectly with this mission.

Mills also noted that Höegh Evi’s expertise in building energy security infrastructure in critical markets makes it a trusted partner for countries navigating the complex shift to cleaner energy sources. Igneo’s investment reflects a broader strategy to support sustainable growth while creating value for stakeholders.

Transaction Details and Timeline

The transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary conditions. Höegh Evi plans to repay its outstanding senior unsecured bonds, which are listed on the Oslo Stock Exchange, ahead of the deal’s closure.

Morgan Stanley & Co. International plc and DNB Markets are serving as financial advisors to Höegh Evi. Legal counsel includes White & Case LLP, Kirkland & Ellis International LLP, and Watson Farley & Williams LLP. Igneo Infrastructure Partners has engaged Citigroup Global Markets Limited as its financial advisor, with Weil, Gotshal & Manges (London) LLP and Advokatfirmaet Schjødt AS providing legal guidance.

Who Are Igneo Infrastructure Partners?

Igneo Infrastructure Partners, an investment team within the First Sentier Investors Group, specialises in high-quality infrastructure investments across sectors such as energy, utilities, waste management, and transportation. With a portfolio valued at $20 billion as of September 2024, Igneo is recognised for its focus on sustainable energy and its proactive approach to asset management.

This acquisition of Höegh Evi aligns with Igneo’s broader goals of supporting energy transition initiatives and fostering innovation in clean energy infrastructure.

Why This Deal Matters

This transaction highlights the growing importance of private investment in global energy transition efforts. Höegh Evi’s innovative projects, including its floating terminals for hydrogen and ammonia, represent the next frontier in addressing climate challenges and enhancing energy security worldwide. With Igneo’s backing, the company is poised to lead the way in clean energy innovation while maintaining its position as a trusted partner for LNG infrastructure.

As energy demands evolve, partnerships like these underscore the critical role of collaboration in shaping a sustainable and secure energy future.