Strohm enhances Thermoplastic Composite Pipe operations with $30.86 million funding round with investors
(WO) — Strohm, the world’s first and leading producer of Thermoplastic Composite Pipe (TCP), has completed the largest funding round in the company’s 15-year history by securing a €15 million ($15.96 million) investment. This deal sets the firm on a rapid global growth trajectory in the low-carbon energy sector.
The €15 million ($15.96 million) investment includes a €10 million ($10.64 million) commitment made on Dec. 15 by ING Corporate Investments (a 100% subsidiary of ING Bank N.V.), the Netherlands’ largest financial institution. The deal also includes a further €5 million ($5.32 million) co-investment from existing shareholders Shell Ventures, Chevron Technology Ventures, Evonik Venture Capital and HydrogenOne Capital Growth Plc (HydrogenOne).
In August 2022, an initial €14 million ($14.90 million) was raised with HydrogenOne investing €10 million (10.64 million), with the remainder from Strohm’s other main shareholders. Within the total round, HydrogenOne invested a total of €11.25 million ($11.97 million).
This funding round enabled Strohm to accelerate the expansion of its manufacturing operations, enhancing its capacity to deliver its unique TCP solutions to offshore green hydrogen and carbon capture and utilization and storage (CCUS) markets, while continuing to support its current clients towards their net-zero goals.
TCP is a flexible, corrosion-resistant pipe technology that does not fatigue or suffer from issues associated with using steel pipe for hydrogen, such as embrittlement.
Strohm CEO Martin van Onna, said, “The €29 million ($30.86 million) commitment will enable us to ramp up operations globally, and implement operational excellence as required for a fast-growing organization.”
“TCP is an innovative, game-changing technology that is agnostic to all fluids and gases including hydrogen, ammonia and CO2. TCP is lightweight and delivered in long lengths on reels, allowing it to be installed by small vessels, reducing cost and carbon footprint. Through these benefits, we have built the world’s largest track record of TCP pipe in operation under harsh conditions”
In November, the firm was awarded a contract by ECOnnect to provide more than 11km of TCP for large-scale green hydrogen developer, Tree Energy Services (TES) at its Wilhelmshaven Green Gas Terminal in Germany. Strohm will provide six 8-inch flowlines with a length of approximately two kilometers each, qualified for the transfer of natural gas and prepared for CO2.