Hydrogen Capital Growth: Clean Energy Fund Suspends Trading Amid Valuation Uncertainty

Snug on the north bank of the River Thames, London is where centuries-old landmarks rub shoulders with cutting-edge skyscrapers. Beyond its historic charm, this city’s become one of the world’s go-to financial hubs — it’s home to green bonds, ESG funds and even the first Green Hydrogen Investment Fund to hit the public markets. That trailblazer was Hydrogen Capital Growth (HGEN), set up to funnel cash into cutting-edge green hydrogen technologies capable of redefining zero-carbon energy.

Though Hydrogen Capital Growth grabbed headlines with its bold vision, the road was bumpier than expected. Over five years its share price nosedived 75%, dragging the fund’s value down to about £33 million. Across the sector, projects hit snags, bills climbed and investors hesitated. In stepped RWC Redwheel, the new manager brought in to overhaul valuations, shore up liquidity plans and navigate these choppy waters. With almost nine million residents and the deep, sophisticated markets of the London Stock Exchange, London still has the muscle and know-how that funds like HGEN need to dream big.

A pioneering fund navigating rough seas

When Hydrogen Capital Growth (HGEN) launched, it felt like uncharted territory — pulling together capital to back everything from electrolyser startups to fuel cell developers. The pitch was simple: diversify across the hydrogen supply chain and ride the wave of its net-zero promise. Early on, HGEN’s NAV climbed along with the industry’s most optimistic forecasts. But as global economic headwinds kicked in, those lofty projections began to wobble.

By mid-2025, a perfect storm had taken shape. Valuations for key holdings got slashed, and four portfolio companies flagged urgent funding needs. Add to that the headache of missing data from the fund’s previous adviser, and quarterly reports stalled. Depressed asset prices, cash constraints and a broken reporting chain converged — it was clear a decisive intervention was overdue.

Green hydrogen and clean energy funds explained

Green hydrogen is produced by water electrolysis powered by renewables like wind or solar, yielding hydrogen and oxygen with zero direct emissions. Once generated, you can store it, ship it or fire it up in fuel cells to power everything from heavy industry to electricity grids — a flexible, carbon-free alternative to fossil fuels.

Clean energy investment funds work by pooling capital from multiple investors and spreading it across technologies that decarbonize traditional energy. By balancing bets on early-stage startups with more mature ventures, these funds aim to mitigate risk while capturing the upside of the global push toward net-zero.

Why trading was paused

On 18 September 2025, Hydrogen Capital Growth formally requested a temporary FCA Suspension on the London Stock Exchange, which the regulator approved without hesitation. Management pointed to “material uncertainty” over portfolio valuations — a problem compounded by missing adviser data and shifting market benchmarks. With just £1.2 million in cash and liquidity gaps emerging at four investee firms, the board agreed that pausing trading was the safest way to protect shareholders while sorting out robust valuations and funding needs.

Strategic crossroads: choosing a path forward

Now HGEN faces some weighty decisions. Should they sell stakes to raise quick cash, take on debt to support portfolio firms or orchestrate an orderly wind-down? Each option carries its own trade-offs: sales can unlock value fast, borrowing extends runway at the cost of higher leverage, and a managed exit prioritizes transparency over growth.

RWC Redwheel and external advisers are burning the midnight oil, running scenario models and setting milestones for each path. The ultimate goal is to maximize recoveries for investors while steering a relatively small fund through a volatile market.

Collateral impact: sector-wide lessons

This suspension shines a harsh light on the world of green hydrogen finance. Sure, specialized funds play a critical role in driving innovation, but they also need rock-solid governance structures and rigorous liquidity stress tests from day one. Investors are watching closely — a slip-up here could chill appetite for similar vehicles across the clean energy sector.

Still, challenges like this often lead to stronger foundations. Expect tougher due diligence, stricter reporting standards and more diversified financing mechanisms. Ultimately, these upgrades will help the hydrogen ecosystem mature and attract larger waves of mainstream capital.

Looking ahead: a glimpse into the future of hydrogen finance

Despite today’s turbulence, the long-term outlook for green hydrogen remains bright. Governments worldwide are doubling down on policy support, and major energy players are turning pilots into commercial-scale rollouts. Meanwhile, RWC Redwheel is racing to publish a shareholder circular by late October, laying out an updated NAV and next steps.

At the end of the day, this episode offers a clear snapshot of what’s needed to make hydrogen finance truly resilient: rigorous valuation processes, adaptive strategies and close collaboration among investors, developers and regulators. For everyone involved — fund managers, project teams and policymakers alike — the message is the same: resilience and teamwork will unlock hydrogen’s promise as a genuine game-changer in the global clean energy transition.