Dresden-based Sunfire gets €195 million-backing as it bats for Europe’s greener future

The renewable energy platform is rapidly expanding its manufacturing capacity and has raised further funds to enable the scaling of its hydrogen technologies
Dresden-based Sunfire gets €195 million-backing as it bats for Europe’s greener future

With the EU set to significantly increase its targets for renewable hydrogen to reduce fossil fuel dependency, key players in the energy market are rising to the challenge. Current political developments have also made us realise how quickly the green hydrogen market needs to grow.

Joining the slew of startups in the race towards a net-zero world, Dresden-based renewable energy platform Sunfire has raised €195 million by partnering with Copenhagen Infrastructure Partners (CIP) and Blue Earth Capital (BlueEarth). Existing investor Carbon Direct Capital Management has also increased its stake in the funding.

The developer and manufacturer of electrolysers and fuel cells will enter into a framework agreement with CIP for its alkaline electrolysers alongside growth and climate impact expertise from BlueEarth.

The company is rapidly expanding its manufacturing capacity and has raised further funds to enable the scaling of its hydrogen technologies. It had earlier raised €25 million in 2019 and roped in €109 million in October 2021.

Nils Aldag, CEO, Sunfire said: “This agreement adds huge value for all parties involved. While CIP can rely on the most advanced electrolysis technology and our highly dedicated expert team, we showcase our ability to deliver commercially scalable projects.”

CIP is investing into Sunfire through its Copenhagen Infrastructure Energy Transition Fund I. By partnering with Sunfire, CIP secures substantial electrolysis capacity. According to the deal, it will purchase pressurised alkaline electrolysers with a total capacity of up to 640 MW, to supply a portion of CIP’s multi-GW Power-to-X project pipeline.

Global impact investment firm BlueEarth will invest via their dedicated climate growth strategy. Alongside growth capital, it contributes a wealth of entrepreneurial experience, institutionalisation guidance and in-house climate impact expertise to bolster Sunfire's next stage of growth.

Felix Pahl, partner, Copenhagen Infrastructure Partners said: “One key factor to drive down the cost of green hydrogen is the industrialization of the manufacturing of electrolysers and CIP plans to participate in this through partnerships and framework agreements.”

Kayode Akinola, global head of private equity direct investments, Blue Earth Capital said: “We believe Sunfire is well positioned at the nexus of energy security and the net zero transition. Green hydrogen has the potential to transform some of the world's most emissions-intensive industries, many of which have no alternative pathways to fully decarbonise.”

Jonathan Goldberg, CEO, Carbon Direct said: “We believe that scaling green hydrogen is a climate imperative. Involvement from customers like CIP speak to the technical and commercial readiness of Sunfire’s green hydrogen solutions.”

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