Green hydrogen startup Hysata announced today that it has raised $111 million in a Series B funding round, with proceeds from the financing aimed at advancing its electrolyzer technology and expanding production.

Hydrogen is viewed as one of the key building blocks of the transition to a cleaner energy future, particularly for sectors with difficult to abate emissions, in which renewable energy solutions such as wind or solar are less practical. The development of clean hydrogen capacity, such as green hydrogen, which uses renewable energy to power the process to extract hydrogen from other materials, will require massive investments in areas including infrastructure, electrolysis, transport and storage.

Founded in 2021, Australia-based Hysata produces high-efficiency electrolyzers, aimed at delivering low-cost green hydrogen and accelerating the shift away from fossil fuels. The company is developing a highly efficient electrolyzer that reduces the amount of electricity required to separate water into hydrogen and oxygen for the production of hydrogen. Key cost-saving benefits of the company’s technology, according to Hysata, include high efficiency at 41.5 kwh/kg compared with approximately 52.5 kwh/kg for incumbent electrolyzers, low cost design based on abundant materials, high cell efficiency eliminating the need for expensive cooling, efficient and low-cost power electronics, and modular technology, enabling MW to GW-scale installations.

Hysata said that it will use the funding to expand production capacity at its manufacturing facility in Wollongong, New South Wales and to further develop its technology as it aims to reach gigawatt scale manufacturing.

Hysata CEO Paul Barrett, said:

“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. With high-efficiency, intrinsically low capex and a mass-manufacturable design, Hysata aims to drive down the levelised cost of hydrogen.”

The funding round was led by bp Ventures and Templewater, which each invested $10 million, and was joined by existing strategic and financial investors IP Group Australia, Kiko Ventures, Virescent Ventures on behalf of Clean Energy Finance Corporation, Hostplus, Vestas Ventures and BlueScopeX. New strategic and financial investors POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group Co., Twin Towers Ventures, Oman Investment Authority’s VC arm IDO and TelstraSuper also joined the round.

The company said that the financing marks the largest Series B in Australian clean tech history.

Gareth Burns, Vice President of bp Ventures, said:

“We know that green hydrogen can play a big role in decarbonisation. This is the first advanced alkaline electrolyser technology that bp Ventures has invested in. It could provide optionality for our hydrogen business as bp aims to become a global leader in low carbon hydrogen production. Hysata’s technology could help save energy and reduce production costs, addressing two challenges of the green hydrogen market.”