Norway-based hydrogen company Hystar AS (Hystar) has raised $26m in a Series B funding round which aims to scale-up to ‘full-commercial operations’ with an automated GW-capacity production online by 2025.
According to the company, an injection of capital raised through equity will also be used to accelerate the growth of Hystar, enabling it to expand into new markets and deliver on larger (100 megawatt (MW)+) projects.
Co-led by AP Venture and Mitsubishi Corporation, additional investors in the round included Finindus, Nippon Steel Trading, Hillhouse Investment and Trustbridge Partners alongside existing investors SINTEF Ventures and Firda.
The investment will go towards scaling up development of technologies such as Hystar’s PEM electrolysers, which the company claims are equipped with a membrane 90% thinner than conventional electrolysers, enabling the production of up to 150% more green hydrogen.
Commenting on the funding round, Fredrik Mowill, CEO of Hystar, said, “Since our inception, we have been committed to rapidly scaling up to ensure the widespread commercial deployment of our game-changing technology.”
“We are therefore excited to have closed our Series B funding round with such high-quality industrial and financial investors who can contribute to accelerating our growth.”
The scaling up of hydrogen technology is considered essential to meeting Net Zero targets. According to Wood Mackenzie, the global steel industry alone will require 52m tonnes of green hydrogen annually to decarbonise by 2050.
Speaking on the potential for hydrogen to transform industry, Luke Li, Founding Partner at Hillhouse Investment – one of the investors involved in the Series B funding round – said, “The scale of decarbonisation required for global industry cannot be underestimated; it is undoubtedly across these applications where green hydrogen will have its most profound impact.”
“Hystar understands that, and its plans for commercialisation in partnership with major industry players will pave the way for significant progress and a greener future.”