Wollongong-based green hydrogen venture Hysata has raised $169 million (US$111 million) in what is being billed as Australia’s largest ever Series B for a CleanTech.
The electrolyser manufacturer’s new funding round was led by energy giant BP’s venture arm and alternative investor Templewater, with the Australian government’s green bank and Hostplus super returning.
Hysata will use the funds to expand its manufacturing facility near Wollongong, where it builds high-efficiency electrolysers that aim to produce green hydrogen with less energy and lower costs than other technologies.
The historic funding is a vote of confidence in the Australian firm, which is competing with local and domestic energy giants in the green hydrogen race.
The firm opened the 8,000 square meter oceanside facility in Port Kembla last August and is targeting exports by 2025 for a potential trillion dollar market.
Hysata was spun out of the University of Wollongong to commercialise breakthrough technology for more efficient electrolysers, the key technology for producing green hydrogen.
Electrolysers split water into hydrogen and oxygen. If powered by renewable energy like solar or wind it is a near-emissions free way of producing hydrogen, which proponents say is needed for hard to abate emissions from heavy industries that can’t electrify.
Hysata’s ‘capillary fed’ electrolyser cell eliminates almost all resistance in the electrolysis process. It has been shown to produce hydrogen with 95 per cent (41.5 kWh/kg) efficiency, well ahead of existing technologies that operate close to 75 per cent (52.5 kWh/kg) efficiency.
“Our mission at Hysata is to accelerate the deep decarbonisation of hard-to-abate sectors such as steel, chemical manufacture, and heavy transport, by delivering the world’s most efficient, simple, and reliable electrolysers,” Hysata chief Paul Barrett said.
“With high-efficiency, intrinsically low capex and a mass-manufacturable design, Hysata aims to drive down the levelised cost of hydrogen.”
Green hydrogen is a key part of the Albanese government’s Future Made in Australia agenda, with more subsidies and tax breaks expected for the sector in next week’s federal budget. The government has already committed $2 billion to green hydrogen production credits and funded several hydrogen hubs around the country.
Australia’s largest electrolyser manufacturing facility and a Hysata rival was opened in Gladstone last month by operator Fortescue, which will produce proton exchange membrane electrolysers.
Hysata raised a $42.5 million Series A funding round in 2022 led by Virescent Ventures on behalf of the Clean Energy Finance Corporation.
Virescent Ventures returned on behalf of the CEFC with another $15 million in the $169 million Series B that was led by bp Ventures and Templewater, a Hong Kong based alternative investor.
Other returning investors in the new round are IP Group Australia, Kiko Ventures (IP Group plc’s cleantech platform), Hostplus, Vestas Ventures and BlueScopeX.
New investors in the Series B are POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group, Twin Towers Ventures, Oman Investment Authority’s VC arm IDO and TelstraSuper.
As well as expanding the manufacturing facility, the funding will go to research and development as Hysata pursues large scale manufacturing.
