‘The announcement demonstrates the strength of Johnson Matthey’s commitment to our sustainability goals and target…’
Johnson Matthey has received a loan of £400 million backed by the UK Government. The finance is said to be the biggest single investment for a UK company researching hydrogen-based energy, and will help the Government deliver its Ten Point Plan for a green industrial revolution. The finance has come through the UK Export Finance’s (UKEF) Export Development Guarantee Scheme. UKEF is the UK’s export credit agency.
The Government added that Johnson Matthey will be investing in the latest research and development into sustainable technologies across the globe as well as supporting high-skilled jobs in the UK.
At the same time Johnson Matthey has said that it is to issue €135 million of private placement notes, which will be the first linked to sustainability. The company said that the notes have interest rates linked with its Key Performance Indicator for the reduction of its Scope 1 and 2 greenhouse gas emissions. The company added that it has a long history in the private placement market dating back to 1996, and these notes are among the first sustainably-linked financing from a UK corporate issuer.
Stephen Oxley, Chief Financial Officer at Johnson Matthey said; ‘The announcement demonstrates the strength of Johnson Matthey’s commitment to our sustainability goals and targets announced last year. The financing will help support the significant investment we are making…’
At the same time the UK Government has released its British Energy Security Strategy which sets out how the UK will accelerate deployment of wind, new nuclear, solar and hydrogen, whilst supporting the production of domestic oil and gas in the nearer term. A new Government body, Great British Nuclear, will be set up to bring forward new projects, backed by substantial funding.
Commenting, the UK Prime Minister Boris Johnson said: ‘We’re setting out bold plans to scale up and accelerate affordable, clean and secure energy made in Britain, for Britain…This will reduce our dependence on power sources exposed to volatile international prices we cannot control, so we can enjoy greater energy self sufficiency with cheaper bills.’ The development has been welcomed by energy producers and energy intensive sectors.