German electrolyser manufacturer Sunfire has raised €215m from an equity financing round, complemented by a term loan of up to €100m provided by the European Investment Bank (EIB).
The package will further boost the company’s role in ramping up the hydrogen economy.
Sunfire welcomes LGT Private Bank, GIC, Ahren Innovation Capital, and Carbon Equity as new investors.
The transaction is subject to customary regulatory approvals and is expected to close in second quarter 2024.
Sunfire chief executive Nils Aldag said: “With this new capital, we are uniquely positioned to further accelerate our company’s growth and industrialisation plans to meet the fast-growing demand for electrolysis technologies.”
In addition to the new investors, existing shareholders have increased their investment in Sunfire – among them Lightrock, Planet First Partners, Carbon Direct Capital, the Amazon Climate Pledge Fund and Blue Earth Capital.
The €100m from the EIB provides increased capacity to boost Sunfire’s development and industrialisation of solid oxide electrolysers.
Aldag added: “The EIB credit demonstrates that Sunfire can also successfully access the venture debt market.
“Alongside continued and growing investor backing, it is giving us the confidence to scale the production of the next generation of electrolysers.”
Sunfire has access to €200m in previously approved, undrawn grant funding to support its growth, making it one of the best capitalised electrolyser manufacturers in the industry.
EIB vice president Nicola Beer said: “To make the green transition work for energy intensive industries, the development of a green hydrogen business environment is crucial.
“Scalable, reliable and efficient electrolysers are a cornerstone.
“Therefore, we at the EIB are happy to support Sunfire’s innovative technology.”
Managing partner at Planet First Partners Andreea Constantinescu added: “As one of the largest and best-capitalized electrolyser manufacturers worldwide, Sunfire is uniquely positioned to meet the growing demand for innovative technologies enabling the transition and sustainability of hard-to-decarbonise industries like steel and aviation.”