Strohm, the world’s leading manufacturer of thermoplastic composite pipe (TCP) based in IJmuiden, the Netherlands, has received a circa EUR 25 million Convertible Loan from its shareholders as it strengthens its position for low carbon energy transition activities and renewables.
The investment, which was secured at the start of the year before the global coronavirus pandemic struck and subsequent oil price fall, will be used to support the firm’s strategic objective of tripling its 2019 capacity in the next 18 months and the continuation of its product development for the new emerging sectors.
The business ascertained the financial support based on the increasing market acceptance of its corrosion free TCP technology as a viable alternative to traditional subsea pipeline solutions with significantly extended service life.
In the last 12 months, Strohm has secured a series of new business wins adding to an already healthy order book with contracts in the pipeline to deliver around 20km in total of its spoolable, lightweight product. The company is also developing solutions for the emerging sectors of carbon capture, utilisation, and storage (CCUS) and hydrogen on the basis that installation of its TCP delivers a 50% lower carbon footprint compared to conventional steel alternatives.
Bernhard Schmidt, chairman of Strohm’s supervisory board, said: “We are excited about the future of TCP and the instrumental role of Strohm in further developing this technology and opening up the market. I would like to thank the shareholders for their continued support of the company and their belief in the unique technology of TCP. We enjoy working with the management team with whom we have a shared vision of TCP’s continuous growth potential in both the traditional and new markets within the energy space as a key transitioning technology.”
Strohm’s shareholder base includes strategic investors such as Aker Solutions, Chevron Technology Ventures, Evonik, private equity investor HPE Growth, Saudi Aramco Energy Ventures, Shell Ventures, Subsea 7, and Sumitomo Corporation.