A few months ago we wrote about the boom in financing for hydrogen energy startups.
As it seems, the cycle is not over. Low-carbon hydrogen corporations proceed to raise big rounds on technologies related to producing the fuel and developing hydrogen-powered batteries and engines.
The latest to do so is ZeroAviacreator of hydrogen-powered aircraft engines. The company is headquartered in Hollister, California. announced Last week, the company announced the completion of an expansion round, bringing its Series C funding total to $150 million. Scottish National Investment Bank has joined as the latest investor as ZeroAvia seeks to open a manufacturing facility in Scotland.
According to Crunchbase dataAt least 23 hydrogen-focused startups around the world have secured funding this yr, raising greater than $1.4 billion in equity capital.
The corporations listed below are targeting niches ranging from heavy-duty hydrogen trucks to identifying and commercializing geological sources of hydrogen. Others are developing or scaling production of electrolyzers, devices that use electricity to split water into hydrogen and oxygen.
China’s leading role
China, which has seen a sharp overall slowdown in startup investment, stays a hotspot for hydrogen-related financing. The country is a global leader in installed power electrolyzers, in accordance with International Energy AgencyIt is also the largest producer of electrolyzers, accounting for 40% of worldwide supply.
Investment in China’s hydrogen-focused startups and growth-stage corporations reflects the country’s leadership. Companies that have raised large funding rounds this yr include: LONGi Hydrogen Energygreen hydrogen company, Solar hydrogena company that develops hydrogen fuel cell technology, Zhongke Qingnengliquid hydrogen suppliers.
The Global Financing Phenomenon
However, other regions are also receiving significant funding, as evidenced by this yr’s larger funding rounds.
For example, this spring in Australia HysataThe company, which develops electrolyzer technology, has raised $110 million in funding co-led by BP Projects AND Temple.
A bigger round took place earlier this yr when the Denver-based company pigeonaimed at identifying and commercializing geological hydrogen resources, has closed the largest early round of funding in the industry, raising $246 million in a Series B round led by Khosla’s ventures.
Government funding is also boosting the sector. One of the biggest injections got here in March, when U.S. Department of Energy announced $750 million for 52 projects to lower the cost of fresh hydrogen and support U.S. leadership in the industry. More than half of the funding will go toward electrolyzer manufacturing and supply chain efforts.
Not everyone is on the upswing
The increase in funding for hydrogen technologies has not translated into good times for everyone in the industry.
One of them was not doing so well Hyzon Motorsventure-backed developer of hydrogen fuel cell systems for trucks and other industrial applications that went public in 2021. Last week, the Illinois-based company announced that the company conducted a 1-50 reverse stock split after the stock fell greater than 99% since its debut.
While Hyzon’s goal of decarbonizing its trucking fleet sounds laudable, investors haven’t found similar interest in its financial results. In its most up-to-date quarter, the company had just $300,000 in revenue and average monthly money burn of $9.2 million.
Like many corporations that went public during the stock market boom of 2021, Hyzon had to deal with drastic changes in investor preferences.
But for the still-private hydrogen-focused corporations, the current IPO environment doesn’t look inviting. So it’ll likely be a while before we see many corporations tapping the public markets. Fortunately, for now, private investors remain fairly enamored with the space.