Sunfire lands new funding to scale up electrolyser manufacturing

Sunfire site. Image by Sunfire.

October 18 (Renewables Now) - Sunfire GmbH on Monday unveiled the receipt of EUR 109 million (USD 126.5m) in new funding in support of plans to build electrolyser production capacity in the gigawatts, and further develop its technology.

Sunfire's Series D round was jointly led by Lightrock and Planet First Partners. Carbon Direct Capital Management and HydrogenOne Capital also invested alongside existing investors.

"Today’s announcement marks the largest equity raise of a green-hydrogen-focused private company anywhere to date. These new funds will allow Sunfire to bring its advanced pressurised alkaline and game-changing SOEC technologies to industrial scale," Sunfire co-founder and CEO Nils Aldag said.

The company intends to build in Germany a 500-MW electrolyser production site by 2023 and it has plans to expand its manufacturing capacity to "multi-gigawatt scale" in the coming years.

The funds from the round will enable Sunfire to further develop its solid oxide (SOEC) technology, which the company says offers greater efficiency and the capability to produce syngas. The latter is a mixture of hydrogen and carbon monoxide that can be used to make green jet fuel, diesel or waxes.

The Dresden-based company added that it will be making a large number of additional hires across all functional areas to further its goal of emerging as a frontrunner in the European green hydrogen sector.

Recently-listed UK renewables fund HydrogenOne is making its inaugural investment by purchasing an unspecified minority stake in Sunfire for EUR 24 million. The deal entitles the UK fund to an observer seat on Sunfire's board, according to a separate filing. HydrogenOne intends to collaborate with Sunfire on future hydrogen projects.

(EUR 1 = USD 1.160)

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