Sunfire raises over €500M to boost European's green hydrogen economy

Sunfire's pressurised alkaline and high-temperature solid oxide electrolysis technologies offer a scalable and efficient means of producing green hydrogen. 
Sunfire raises over €500M to boost European's green hydrogen economy

German electrolyser manufacturer Sunfire announced today that it has raised €215 million in a Series E equity financing round, further complemented by a term loan of up to €100 million provided by the European Investment Bank (EIB).

In addition, Sunfire has access to approx. €200 million from previously approved, undrawn grant funding to support its growth. This makes Sunfire one of the best-capitalised electrolyser manufacturers in the industry.

In total this brings funding to over €500 million which will further boost the company's critical role in ramping up the hydrogen economy. 

Sunfire's pressurised alkaline and high-temperature solid oxide electrolysis technologies are a key enabler of the transition to renewable energy, offering a scalable and efficient means of producing green hydrogen. 

The company targets installing several gigawatts of electrolysis equipment by 2030 in large-scale green hydrogen projects, securing a leading position in the fast-growing global electrolyser market.

According to Sunfire CEO Nils Aldag: 

"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 investors backing our vision, product offering, and capabilities to deliver industrial electrolysers at pace and scale.

With this new capital, we are uniquely positioned to accelerate further our company's growth and industrialisation plans to meet the fast-growing demand for electrolysis technologies."

Sunfire welcomes LGT Private Banking, GIC, Ahren Innovation Capital, and Carbon Equity as new investors. 

In addition to the new investors, existing shareholders have increased their investment in Sunfire – among them Lightrock, Planet First Partners, Carbon Direct Capital, the Amazon Climate Pledge Fund, and Blue Earth Capital.

The transaction is subject to customary regulatory approvals and is expected to close in Q2 2024.

Nils Aldag underlines: 

"The EU is rightly determined to future-proof its industry. This requires a two-pronged approach which helps energy-intensive industries decarbonise and improve the productivity and resilience of their operations, while supporting industrial clean-tech players like Sunfire to be competitive on the global stage. 

The EIB credit demonstrates that Sunfire can also successfully access the venture debt market.

Alongside continued and growing investor backing, it is giving us the confidence to scale the production of the next generation of electrolysers. Investments like this help move 'Made in Europe' from an ambition to a reality, and I am delighted about this vote of confidence in our business."

Nicola Beer, Vice President European Investment Bank shared: 

"To make the green transition work for energy-intensive industries, the development of a green hydrogen business environment is crucial. Scalable, reliable and efficient electrolysers are a cornerstone.

Therefore, we at the EIB are happy to support Sunfire's innovative technology."

According to Kevin Bone, Partner at Lightrock: 

"We are delighted to see Sunfire's outstanding delivery for its clients, technological leadership, and the remarkable team, recognised by these leading investors who have joined at this pivotal stage in the company's journey.

Sunfire has helped shape the hydrogen economy, delivering impactful projects that work to decarbonise some of the hardest-to-abate industries.

The coming together of these stakeholders speaks to the culmination of years of hard work and underscores the immense opportunity that lies ahead for the company.

Lightrock is proud to contribute to and participate in Sunfire's mission to accelerate the transition to a more sustainable future."

Lead image: Sunfire. Photo: uncredited. 

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