HydrogenOne backs Sunfire GmbH’s EUR 500 million funding round

LONDON: HydrogenOne Capital Growth plc, a London-listed fund investing in clean hydrogen, has announced its participation in a EUR 500 million funding package for Sunfire GmbH, a leading electrolyzer manufacturer.

The package includes a EUR 215 million Series E equity round, a EUR 100 million term loan from the European Investment Bank (EIB), and EUR 200 million from undrawn grants. The deal is expected to close in Q2 2024, subject to regulatory approvals.

Sunfire, a portfolio company of HydrogenOne, is expanding its production capacity and research facilities in Germany, aiming to install several gigawatts of electrolysis equipment by 2030. Sunfire’s technologies enable the efficient production of green hydrogen from renewable energy sources, contributing to the global energy transition.

HydrogenOne has made a follow-on investment of £0.3 million in Sunfire, maintaining its stake at 20.4% of its gross asset value (GAV). The fund has also modified its investment policy to allow investments in Sunfire to reach up to 21% of its GAV, reflecting its confidence in Sunfire’s growth potential. HydrogenOne’s investment strategy is to back the leading innovators in the hydrogen industry, with a positive environmental impact.

Dr JJ Traynor, Managing Partner of HydrogenOne Capital LLP, commented: “Sunfire was HydrogenOne’s first investment, made in 2021, underscoring our conviction in the key role of electrolysis in the energy transition. The funding announced today puts Sunfire on a firm footing to build out its capacity and profitability”.

Nils Aldag, CEO of Sunfire said: “This substantial financing round is good news for Europe’s leading role in hydrogen production and for the European clean-tech industry. I am delighted to welcome additional investment, backing our vision, product offering, and capabilities to deliver industrial electrolyzers at pace and scale. With this new capital, we are uniquely positioned to further accelerate our company’s growth and industrialisation plans to meet the fast-growing demand for electrolysis technologies.”

Nicola Beer, Vice President European Investment Bank: “To make the green transition work for energy intensive industries, the development of a green hydrogen business environment is crucial. Scalable, reliable and efficient electrolyzers are a cornerstone. Therefore, we at the EIB are happy to support Sunfire’s innovative technology.”

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