Vestas Ventures, the venture arm of The Danish wind turbine manufacturer which goes under the same name, has joined Hysata‘s oversubscribed Series A funding round of $42.5 million. The round was led by Virescent Ventures with the participation of Kiko Ventures, IP Group Australia, Hostplus, and BlueScope’s ventures arm BlueScopeX TM. The Australian startup develops a new type of hydrogen electrolyser which has the potential to significantly shift the economics of green hydrogen production, bringing $2/kg green hydrogen within reach, and accelerating the global transition to net zero emissions. The funding will help the company with expanding its team and developing a pilot manufacturing facility.
Hysata’s Series A funding exceeds $40 million
Australian company Hysata’s world-leading hydrogen electrolyser technology has been supported by renowned global investors, as the organisation closes its oversubscribed Series A funding round of $42.5 million AUD. Virescent Ventures led the funding round on behalf of the Clean Energy Finance Corporation (CEFC) (Aus), with participation from Kiko Ventures (UK), IP Group Australia, Vestas Ventures (Denmark), Hostplus (Aus) and BlueScope (via its ventures arm BlueScopeX TM) (Aus).
Assembling such a high profile and high impact list of investors underlines the significance of the transformation that Hysata is bringing to the green hydrogen industry. The Hysata electrolyser operates at 95% system efficiency (41.5 kWh/kg), delivering a giant leap in performance and cost over incumbent technologies, which typically operate at 75% or less. This high efficiency, coupled with the simple approach to mass manufacturing and low supply chain risk puts the company on a path to delivering the world’s lowest cost green hydrogen.
Funding from the Series A round will be used to grow the Hysata team and develop a pilot manufacturing facility.
“Our mission is to redefine the economics of green hydrogen production through our innovative proprietary electrolyser technology. The support of this international syndicate of clean energy practitioners and investors validates our core technology and our approach to scaling and mass manufacture,” said Paul Barrett, CEO of Hysata.”
Green hydrogen is a vital energy vector on the world’s path to net zero, critical to decarbonising the hard-to-abate, yet vital, sectors of our economy such as steelmaking, heavy transport, and the chemical industry. The extensive end use cases for green hydrogen translate to a greater than trillion-dollar market opportunity.
“Over the last 12-18 months, Hysata has been interacting with dozens of major customers globally. The impact our efficiency and system simplicity delivers to customers’ project economics truly moves the needle. We look forward to continuing to work with our shareholders and customers to bring this much needed technology to market as soon as possible.”
The CEFC invested $10 million into the Series A funding round, building on its initial $750,000 investment in the early commercial development of Hysata’s research. CEFC CEO Ian Learmonth said that backing a company like Hysata and its cutting-edge electrolyser technology is vital in helping to grow Australia’s clean technology ecosystem.
“The CEFC is proud to continue our support for Hysata, which is set to be a major player in the global electrolyser industry. Green hydrogen will be essential to addressing the hardest to abate sources of emissions, and we’re excited to see Australian ingenuity providing the technology solutions that will help this industry reach scale.
The CEFC has a strong focus on hydrogen related investments through both our Innovation and Advancing Hydrogen Funds and we are delighted to see Hysata continue to advance hydrogen to help meet future energy needs and reduce emissions in more sectors of the Australian economy,” Mr Learmonth said.
The CEFC investment is via its specialist Clean Energy Innovation Fund, which is managed by Virescent Ventures. Virescent Ventures Partner Blair Pritchard said: “Hysata continues to make rapid progress and we are pleased to support such an innovative company with an outstanding team. The continued growth of Hysata is an important pointer to the enormous potential of hydrogen to our net zero future.”
Kiko Ventures’ Founding Partner, Robert Trezona, said Hysata has real potential to become a major global clean technology player.
“Having assessed scores of electrolyser technologies in my 20 years in cleantech, Hysata’s technology stands out as a true breakthrough. The company has redefined the core cell architecture for alkaline electrolysis, producing a practical and scalable solution with game changing efficiency. Hysata has the potential to be a globally significant company in the hydrogen economy and we look forward to supporting its growth, especially here in Europe.” Dr Trezona said.
IP Group Australia’s Managing Director, Michael Molinari, added: “Hysata have assembled a world-class team to bring their revolutionary capillary-fed electrolyser to market. We’re proud to have supported the company from before inception at the University of Wollongong to now redefining the economics of green hydrogen with their electrolyser that is set to scale.”
Todd O’Neill, Head of Vestas Ventures, said: “As the venture capital arm of the global leader in sustainable energy solutions, Vestas Ventures foresees great potential in combining wind power with electrolysers for green hydrogen production. We are delighted to have been invited to invest in Hysata. Nurturing disruptive renewable technologies is central to our investment strategy and we look forward to following Hysata’s success over the coming years.”
BlueScopeXTM’s General Partner, Michael Quinn, agreed that Hysata’s technology could play a significant role in the development of commercially viable hydrogen production.
“BlueScopeXTM is pleased to be investing in Australian technologies coming out of our local communities, with Hysata being born in the Illawarra. Our industry requires smart, affordable technologies like Hysata’s to help progress the broader goal of decarbonisation, and we are excited to be supporting them on their path to commercialisation,” he said.