Startups related to the planet’s lightest element have been receiving large amounts of funding recently.
Over the past 4 months, developers of low-emission hydrogen production and distribution technologies have raised over $1 billion in enterprise investments Crunch Base data. This is over two-thirds of the amount collected throughout last 12 months.
The lineup includes a number of very large early rounds. The last one was last week’s series B for Hysatawhich raised $110 million in financing he co-led BP ventures AND Temple water.
The Australian company is one of several recently funded startups working on electrolyzers – devices that use electricity to separate water into hydrogen and oxygen.
A few months earlier, based in Denver Pigeonwhich focuses on the identification and commercialization of geological hydrogen resources, has concluded the largest round of early-stage space research, with a Series B led by Khosla ventures.
Five-year record of achievement
A slew of large deals means hydrogen energy is one of the few areas where startup investment hasn’t peaked in 2021. As shown in the chart below, funding levels peaked in 2022, but it looks like this 12 months it would increase much more.
The biggest rounds
So who will receive the funding? We used Crunchbase data for selection a list of 13 well-funded startups in the hydrogen energy space which was the last to acquire financing in recent quarters.
In total, the corporations on our list have raised $3.66 billion in equity financing so far, and a whole lot of thousands and thousands more in grants and debt financing. In addition to Hysata and Koloma, other standout products include:
- Electric hydrogen, which produces electrolysers that it claims can produce hydrogen at the lowest cost available, has been called the first unicorn in the green hydrogen industry. In October, the Massachusetts-based company raised $380 million C series from various enterprise and strategic sponsors.
- HysetCooperator of a network of hydrogen distribution stations and mobility services, raised USD 216 million in an April round led by a hydrogen investor Hy24. The French company HysetCo announced then that it distributes almost 30 tons of hydrogen to customers every month and manages a fleet of over 500 hydrogen-powered vehicles.
- Energy solutions from treesbased in Brussels, closed in April with USD 150 million C series expand its business model to incorporate the use of renewable energy to provide green hydrogen. Tree Energy then combines the hydrogen with processed CO₂ to provide e-NG, or electric natural gas.
- ZeroAviadeveloper of hydrogen-electric engines for zero-emission flight earned $116 million in September C series. The Hollister, California-based company counts Airbus as the lead investor and is also supported by United Airlines AND Alaska Aviation Group.
Hydrogen moment
One sec green hydrogen is by no means a latest concept, increased investor interest in this space indicates that they now see the essential combination of government incentives, cost reductions through technology and market openness to deliver compelling results.
As we have long seen with startups, timing is one of the most significant aspects in determining success. It looks like that moment may come for low-emission hydrogen.