The Guernsey-based environmental infrastructure investment fund said the investment was alongside a consortium including other Foresight Group LLP managed funds and its development partner HH2E AG, a specialist in developing green hydrogen projects to decarbonise industry.
JLEN Environmental said the consortium of investors approved the preliminary investment decision and the initial investment is being utilised for "detailed engineering designs and the procurement of long lead items".
The green hydrogen production site is located in Lubmin, Germany, JLEN Environmental said. It is capable of producing over 6,000 tonnes or 200,000 megawatt hours of green hydrogen per year during the first 100 megawatt phase, which will encompass electrolysis and integrated high-capacity battery storage.
JLEN Environmental said subsequent expansion phases are expected to increase capacity to over one gigawatt, with annual production exceeding 60,000 tonnes of green hydrogen.
The company said the Lubmin plant will be built and operated by HH2E and will serve green hydrogen customers and offtakers, including the mobility sector and large-scale energy and industrial consumers.
It added that Lubmin benefits from excellent pre-existing grid infrastructure, including two liquefied natural gas terminals, built in 2022, which connect the town with the country's pipeline network.
The final investment decision is expected in the coming months, JLEN Environmental said, with construction of the plant commencing immediately thereafter.
"We are pleased to be making good progress with our partnership with HH2E, which is poised to become one of the largest producers of green hydrogen in Europe. They have a deep understanding of the sector and they are highly capable of developing attractive opportunities to unlock value for investors," said JLEN Environmental Chair Ed Warner.
"Hydrogen has an important role to play in decarbonising heavy transport, industry, and other hard-to-abate sectors of the economy. Investing in this sector will remain an important near-term focus for the company as we continue to assess opportunities to recycle capital within the portfolio."
In January, JLEN Environmental said it would invest in the Thierbach green hydrogen project near Borna in Germany in partnership with HH2E.
Both opportunities are expected to provide attractive returns compared to the portfolio average, JLEN Environmental said.
In early morning trade on Monday, JLEN Environmental shares were up 0.1% to 104.74 pence each in London.
By Greg Rosenvinge, Alliance News reporter
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