(Bloomberg) -- Thyssenkrupp AG is pushing ahead with plans for an initial public offering of a unit that helps to build hydrogen plants, according to people familiar with the matter. 

The German engineering group is looking to list Uhde Chlorine Engineers as soon as the first quarter of 2022 to capitalize on surging interest in hydrogen-based technologies, the people said. An IPO could value the business at as much as 5 billion euros ($5.7 billion), they said, asking not to be identified discussing confidential information.

Thyssenkrupp has been working with Citigroup Inc. to explore options for Uhde. It previously considered taking the business public via a merger with a special purpose acquisition company before opting for the traditional IPO route, the people said. Thyssenkrupp could appoint more banks in the coming weeks, according to the people.

Deliberations are ongoing and no final decisions on the size or timing of a listing have been taken, they said. A representative for Thyssenkrupp declined to comment, while a spokesperson for Citigroup didn’t immediately respond to a request for comment.

Established as a joint venture with Italy’s Industrie De Nora SpA, Uhde constructs plants that generate hydrogen gas from renewable sources of energy such as solar and wind. Hydrogen converts to electricity without greenhouse gas emissions when fed through a fuel cell or burned in a turbine, and can also be used as a way to store energy. 

It’s seen as key to cutting emissions from carbon-heavy industrial processes like chemical production and steelmaking, and they’ve increasingly been attracting money from investors betting on the shift away from fossil fuels. An unprecedented surge in power and natural gas prices has brought the need for diversified energy sources into even sharper focus and helped spur a flurry of green IPOs in Europe.

Thyssenkrupp Chief Executive Officer Martina Merz has overseen a far-reaching restructuring of the group in her bid to improve the fortunes of one of Germany’s last mega-conglomerates. After selling its prized elevator unit last year, Thyssenkrupp reached agreements during the summer to offload smaller mining and infrastructure businesses.

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