13 May 2024

We're closer to transformative green energy tech as world-class investors wrap around Illawarra innovator

| Dione David
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Paul Barrett Hysata CEO

Strong backing has seen hydrogen electrolyser manufacturer Hysata raise $172 million. Photo: Hysata.

Australia’s largest clean technology Series B funding will allow an Illawarra company to accelerate its commercialisation of game-changing green-energy technology.

Award-winning Port Kembla-headquartered hydrogen electrolyser manufacturer Hysata, which is developing a completely new type of electrolyser featuring one of the world’s most efficient electrolysis cells (95 per cent efficiency versus 65 per cent compared with incumbent technology), has raised $172 million.

Green hydrogen is a critical fuel for decarbonising heavy industry and electrolysers are the key technology to produce that green hydrogen at scale and lower cost.

The Series B round, co-led by bp Ventures and Templewater, which each invested $10 million, accelerates Hysata’s momentum towards manufacturing at the multigigawatt scale. At scale, Hysata’s electrolysers could achieve energy efficiency well above the International Renewable Energy Agency’s 2050 efficiency target.

The funding round also includes strong backing from existing major strategic and financial investors IP Group Australia, Kiko Ventures (IP Group plc’s cleantech platform), Virescent Ventures on behalf of Clean Energy Finance Corporation, Hostplus, Vestas Ventures and BlueScopeX, and new major strategic and financial investors POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group, Twin Towers Ventures, Oman Investment Authority’s VC arm IDO and TelstraSuper.

Joining them is the Albanese Government, with a $15 million investment through the Clean Energy Finance Corporation (CEFC).

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Minister for Climate Change and Energy Chris Bowen said the technology could help drive down the cost of hydrogen production and decarbonise energy-intensive sectors such as steel, fertiliser and shipping.

“Clean, cheap renewable hydrogen is a vital part of a future made in Australia,” he said. “Manufacturing electrolysers in Australia is a huge opportunity to shore up essential supply chains and leverage our innovation to capture more of the global renewable-energy technology chain.”

Federal Member for Cunningham Alison Byrnes said with the energy transformation, the Illawarra needed to focus on how it could secure good, well-paid jobs and economic prosperity into the future.

“Regions like the Illawarra have helped build the nation, and we hope to play a role in powering it into the future,” she said.

“The technological leap that these electrolysers represent is proof that the Illawarra isn’t just adapting to the renewable-energy revolution – we’re leading it.”

READ ALSO Illawarra’s Hysata shines on global stage at COP28

Hysata CEO Paul Barrett said the backing of a world-class syndicate of investors vindicated the company’s “breakthrough innovation” and mission to accelerate the deep decarbonisation of hard-to-abate sectors such as steel, chemical manufacture and heavy transport.

“It will strengthen our team and enhance our capabilities, as we propel towards widespread commercial availability,” he said.

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

“We look forward to working with our shareholders, customers and partners as we continue our scale-up journey.”

For more information, visit Hysata.

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