Investments (Tables)

3 Months Ended

Mar. 31, 2023

Investments, All Other Investments [Abstract]

Schedule of Equity Method Investments

The following table represents the activity in equity method investments:

	Equity Method Investments (1) (2) (3)
Balance at December 31, 2022	$	93.0
New investments (4)	12.4
Equity in loss of unconsolidated affiliates	(0.5)
Foreign currency translation adjustments and other	(0.2)
Balance at March 31, 2023	$	104.7

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(1)Cryomotive: Our equity method investment in Cryomotive GmbH (“Cryomotive”) was $5.1 and $4.9 at March 31, 2023 and December 31, 2022, respectively. Equity in earnings (loss) of unconsolidated affiliates, net of this investment was $0.1 and $(0.5) for the three months ended March 31, 2023 and 2022, respectively, and is classified in equity in loss of unconsolidated affiliates, net in the condensed consolidated statements of operations and comprehensive (loss) income. The remaining change in fair value during the current period was attributable to an immaterial gain on foreign currency translation.

(2)HTEC: Our equity method investment in HTEC Hydrogen Technology & Energy Corporation (“HTEC”) was $79.7 and $80.8 at March 31, 2023 and December 31, 2022, respectively. Equity in loss of unconsolidated affiliates, net of this investment was $(1.0) and $(0.3) for the three months ended March 31, 2023 and 2022, respectively. The remaining change in fair value during the current period was attributable to an immaterial loss on foreign currency translation.

(3)Hudson Products: Also included in our equity method investments is a 50% ownership interest in a joint venture with Hudson Products de Mexico S.A. de CV which totaled $4.3 and $4.0 at March 31, 2023 and December 31, 2022, respectively. This investment is operated and managed by our joint venture partner and as such, we do not have control over the joint venture and therefore it is not consolidated. We recognized equity in earnings of unconsolidated affiliates, net of this investment of $0.3 and $0.3 for the three months ended March 31, 2023 and 2022, respectively.

Liberty LNG: Additionally, we have a 25% ownership interest in Liberty LNG, which totaled $3.0 and $2.9 at March 31, 2023 and December 31, 2022, respectively. We recognized equity in earnings of unconsolidated affiliates, net of this investment of $0.1 and $0.1 for the three months ended March 31, 2023 and 2022, respectively.

We have another immaterial investment in an unconsolidated affiliate of $0.4 for all periods presented.

(4)Hylium Industries: During the first quarter of 2023, we completed an investment for a 50% ownership interest in Hylium Industries, Inc. (“Hylium”) for $2.3. Our equity method investment in Hylium was $2.2 at March 31, 2023. The change in fair value during the current period was attributable to an immaterial loss on foreign currency translation.

L&T Howden Private Ltd ("LTH"): In connection with the Howden Acquisition, we recorded a 49.9% ownership interest in a joint venture in L&T Howden Private Ltd at a fair value of $10.1. Our equity method investment in LTH was $10.0 at March 31, 2023. Equity in earnings, net of this investment was $0.0 in the period ended March 31, 2023, and is classified in equity in loss of unconsolidated affiliates, net in the condensed consolidated statement of operations for the three months ended March 31, 2023. The change in fair value during the current period was attributable to an immaterial loss on foreign currency translation.

Summary of Investments

The following table summarizes the components of our investments in equity securities:

	Investment in Equity Securities, Level 1 (1)		Investment in Equity Securities, Level 2 (1)		Investments in Equity Securities, All Others (2)		Investments Total
Balance at December 31, 2022	$	17.2	$	7.8	$	71.5	$	96.5
Decrease in fair value of investments in equity securities	0.5		(2.5)		—		(2.0)
Foreign currency translation adjustments and other	0.2		—		(0.1)		0.1
Balance at March 31, 2023	$	17.9	$	5.3	$	71.4	$	94.6

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(1)McPhy: Investment in equity securities Level 1 includes our investment in McPhy (Euronext Paris: MCPHY - ISIN; FR001742329). McPhy’s common stock trades on the Euronext Paris stock exchange and therefore we measure our investment in McPhy using Level 1 fair value inputs. The fair value of our investment in McPhy was $17.9 and $17.2 at March 31, 2023 and December 31, 2022, respectively. We recognized an unrealized gain of $0.5 and an unrealized loss of $3.7 in our investment in McPhy for the three months ended March 31, 2023 and 2022, respectively.

Stabilis: Investment in equity securities Level 2 includes our investment in Stabilis Energy, Inc. (NasdaqCM: SLNG) (“Stabilis”). Stabilis represents an instrument with quoted prices that trades less frequently than certain of our other exchange-traded instruments and therefore we measure our investment in Stabilis using Level 2 fair value inputs. The fair value of our investment in Stabilis was $5.3 and $7.8 at March 31, 2023 and December 31, 2022, respectively. We recognized an unrealized loss of $2.5 and an unrealized gain of $1.1 for the three months ended March 31, 2023 and 2022, respectively, in our investment in Stabilis.

(2)Transform: The fair value of our investment in Transform Materials LLC (“Transform Materials”) was $25.1 at both March 31, 2023 and December 31, 2022.

Svante: The fair value of our investment in Svante Inc. (“Svante”) was $38.5 at both March 31, 2023 and December 31, 2022.

Hy24: Our investment in Hy24 is measured at fair value using the net asset value (“NAV”) per share practical expedient and is not classified in the fair value hierarchy. The fair value of our investment in the Hy24 was $0.8 and $0.9 at March 31, 2023 and December 31, 2022, respectively. See “Hy24 (f/k/a FiveT Hydrogen Fund)” below for further information.

Gold Hydrogen LLC: The fair value of our investment in Gold Hydrogen was $2.0 at both March 31, 2023 and December 31, 2022, respectively.

Avina: During the fourth quarter of 2022, we completed an investment in Avina Clean Hydrogen Inc. (“Avina”) in the amount of $5.0. The fair value of our investment in Avina was $5.0 at both March 31, 2023 and December 31, 2022, respectively.

Our investments in Transform Materials, Svante, Hy24, Gold Hydrogen and Avina represent equity instruments without a readily determinable fair value. These investments are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer.