H2B2 has signed a letter of intent to combine with RMG III, a special purpose acquisition company (SPAC) affiliated with US-based capital market company Riverside Management Group, to become a publicly traded company


H2B2 Electrolysis to merge with RMG III. (Credit: Maksym Kaharlytskyi on Unsplash)

Spanish green hydrogen production company H2B2 Electrolysis Technologies has signed a letter of intent (LOI) to combine with RMG Acquisition Corporation III (RMG III).

RMG III is a special purpose acquisition company (SPAC) affiliated with Riverside Management Group, a US-based capital market company.

Under the terms of the LOI, H2B2’s shareholders will continue to hold considerably all their equity in the combined public company.

RMG III and H2B2 are expected to disclose additional details about the proposed business combination after executing a definitive agreement, which is expected by end of Q1 2023.

As part of the SPAC merger, Anselmo Andrade Fernández de Mesa, who was recently appointed as CEO, will take control of H2B2 from its founder Felipe Benjumea Llorente.

Llorente will continue in the company as a strategic advisor.

H2B2 chairman Antonio Vázquez said: “The steps we are taking to finalize our business combination with RMG III will represent a new era for our company and a great step forward in accelerating the decarbonization of the energy sector globally.”

Anselmo Andrade said: “The company will continue to distinguish itself by bringing together a team with decades of experience in the hydrogen energy sector and deploying its proprietary technology as it continues its expansion.”

Established in 2016, H2B2 is a green hydrogen energy business, expanding in Europe, the US, Latin America, Asia, and the Middle East.

It has been selected as a participant in the IPCEI Hy2Tech programme, where the European Commission approved up to €25m public grants to the company.

In 2019, H2B2 secured a grant from the California Energy Commission for the development of a 3MW green hydrogen production facility in Fresno, California.

In 2021, Colombia’s Ecopetrol teamed up with H2B2 and incorporated the company into its group of strategic partners to decarbonise and develop green hydrogen energy.

The company has recently entered the Indian market through a joint venture with GR Promoter Group and created the GreenH.in Electrolysis.

RMG III is engaged in a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganisation, or similar business combination.

Its securities are listed on NASDAQ, with $483m cash in trust raised through its IPO.

RMG III partner Jim Carpenter said: “RMG III is excited to be partnering with a company that we believe has the potential to become a global green hydrogen leader.”