Australia hydrogen player gets $29m Series A
Australia’s Virescent Ventures, a VC firm spun out earlier this year from Clean Energy Finance Corporation (CEFC), has led a AUD 40m (USD 29m) Series A round for local hydrogen energy start-up Hysata.
CEFC also participated in the deal, providing AUD 10m, with additional support coming from superannuation fund Hostplus, industrials conglomerate IPI Group Australia, and a VC unit of Sydney-listed steel company BlueScope. They were joined by UK-based Kiko Ventures and Denmark’s Vestas Ventures, both clean energy specialists.
CEFC has a strong focus on hydrogen-related investments through its Innovation and Advancing Hydrogen funds. It invested AUD 750,000 in Hysata last year and has described the company as set to be a major player in the global electrolyser industry.
The electrolysis process separates hydrogen and oxygen from water. The oxygen can be released into the atmosphere or stored for industrial purposes. The hydrogen is typically compressed or liquefied for energy applications. The fuel does not create greenhouse gases but is more expensive than fossil fuels.
Hysata claims its electrolyser operates at 95% system efficiency compared to the typical 75% rate of incumbent technologies. It said that this efficiency, along with a simple approach to mass manufacturing and lower supply chain risk, could allow it to deliver the lowest cost green hydrogen globally.
The company refers to green hydrogen as a vital energy vector on the path to net zero, critical to decarbonising hard-to-abate, yet vital sectors of the economy such as steelmaking, heavy transport, and the chemical industry. It estimates that the various proposed use-cases for green hydrogen translate to a greater USD 1trn market opportunity.
“Having assessed scores of electrolyser technologies in my 20 years in cleantech, Hysata’s technology stands out as a true breakthrough,” Robert Trezona, a founding partner of Kiko, said in a statement. “The company has redefined the core cell architecture for alkaline electrolysis, producing a practical and scalable solution with game-changing efficiency.”
Virescent continues to manage the CEFC-launched Clean Energy Innovation Fund, investing from seed to late growth stages. In addition to clean energy transition, core themes include mobility and smart cities, food and agriculture, and circular economy and clean industrial processes.
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