The times in which government politicians presented their hydrogen strategies are over, but the gas is still considered the energy of the future. And a Dresden scale-up is now benefiting from this. Sunfire, which specializes in large-scale electrolysis, can today announce that it has raised a whopping 315 million euros. It is a mix of equity and credit that flows into the company. It is not known whether unicorn status could be achieved.
Sunfire will receive a total of 215 million euros from old and new donors. Lightrock, Amazon Climate Pledge Fund and Planet First Partners are investing again, with new additions including the Liechtenstein private bank LGT and the sovereign wealth fund GIC from Singapore. In addition to these 215 million euros, there is an additional 100 million euros as a loan from the European Investment Bank (EIB). There is also 200 million euros in funding. In October 2021 it was already 109 million euros, followed in March 2022 in Series D by 195 million euros.
A major EU funding commitment for hydrogen was actually expected as early as 2023, but approval for 33 projects in the so-called “Hy2Infra wave” in the Union only took place recently. Among other things, this promotes the use of 3.2 GW of large-scale electrolysers to produce green hydrogen, and Sunfire, among others, will benefit from this. Such IPCEI (Important Project of Common European Interest) can also be important for startups and scale-ups in other areas.
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Hydrogen for steel and chemistry
Because what exactly are the people of Dresden doing? Green hydrogen (H2) or synthesis gas (mixture of hydrogen and carbon monoxide) is produced in an electrolysis process using electricity, steam and CO2. The hydrogen can then be used in refineries, in iron and steel production and in the chemical industry to replace coal and co as an energy source. So Sunfire is working on the decarbonization of the industry. “Green hydrogen will play a crucial role in transforming the chemical sector,” said Nils Aldag, CEO of Sunfire.
In Finland, for example, Sunfire has already installed a pressure alkaline electrolyser that can produce up to 400 kg of green hydrogen per hour using renewable energy from wind power. The hydrogen plant is scheduled to start in the second half of 2024. Buyer Danisco Sweeteners will use green hydrogen at its factory in Kotka, Finland, to reduce CO2 emissions when producing xylitol for the food industry, it says.
Sunfire-HyLink SOEC electrolyzer in Salzgitter. © Sunfire