The hydrogen energy sector is experiencing a significant surge in startup funding, with companies focused on low-emission hydrogen technologies securing substantial investments across various aspects of the industry. In 2024, at least 23 hydrogen-focused startups globally have secured over $1.4 billion in equity funding, targeting diverse niches within the sector.
Top 10 hydrogen startups raised funding in 2024
EnerVenue
EnerVenue is developing nickel-hydrogen batteries for long-duration energy storage applications, suitable for grid-scale, commercial, and residential uses. These batteries offer a maintenance-free solution that can withstand extreme temperatures and provide reliable energy storage for 2-12 hours.
Koloma
Koloma focuses on extracting naturally occurring hydrogen from underground geologic deposits. The company uses innovative techniques similar to oil and gas exploration, including seismic mapping and AI-assisted tools, to locate hydrogen-rich sites beneath the Earth’s surface.
HysetCo
Based in France, HysetCo provides integrated hydrogen mobility solutions, including hydrogen refueling stations and management of hydrogen vehicle fleets for businesses. The company aims to facilitate the transition to zero-emission transportation with a comprehensive service package.
Electric Hydrogen (EH2)
Electric Hydrogen (EH2) is developing innovative electrolyzer technology for green hydrogen production. Their flagship product is a 100 megawatt (MW) electrolyzer plant that can be built and commissioned in about three months, offering significantly lower production costs compared to traditional methods.
Tree Energy Solutions
Tree Energy Solutions focuses on producing e-NG (electric natural gas) derived from green hydrogen. The company utilizes renewable energy sources to generate green hydrogen, which is then combined with recycled CO2 to create e-NG for various sectors.
LONGi Hydrogen Energy
As a subsidiary of LONGi Green Energy Technology Co., Ltd., LONGi Hydrogen Energy develops advanced hydrogen production technologies, particularly through water electrolysis. The company aims to become a leading player in the hydrogen technology sector.
Hysata
Hysata, an Australian company, specializes in high-efficiency electrolysers for green hydrogen production. Their technology boasts an impressive 95% efficiency rate, significantly higher than traditional systems, potentially revolutionizing the economics of green hydrogen production.
Verdagy
Verdagy focuses on large-scale green hydrogen production through advanced electrolysis technology. Their patented single-cell architecture allows for real-time matching with variable energy sources, resulting in high efficiencies and low levelized cost of hydrogen (LCOH).
ZeroAvia
ZeroAvia is developing hydrogen-electric aircraft technology aimed at achieving zero-emission aviation. The company has made significant progress in creating hydrogen-powered engines for regional aircraft, working towards transforming the aviation industry.
Molten Industries
Molten Industries is developing innovative technologies for producing clean hydrogen and graphite through methane pyrolysis. This process thermally decomposes methane into hydrogen gas and solid carbon, avoiding carbon emissions typically associated with hydrogen production from methane.
China’s dominance in the hydrogen sector
China continues to lead the global hydrogen sector, maintaining its position as a major hub for hydrogen-related investments despite an overall slowdown in startup funding. The country’s dominance is evident in its installed electrolyzer capacity and manufacturing capabilities, accounting for 40% of global electrolyzer production.
Several Chinese companies have secured significant funding in 2024:
- LONGi Hydrogen Energy: Focusing on green hydrogen production
- Sunshine Hydrogen: Developing hydrogen power-supply technology
- Zhongke Qingneng: Specializing in liquid hydrogen supply
Global funding landscape
The funding boom is not limited to China, with significant investments occurring in other regions as well. Some notable examples include:
- Hysata (Australia): Secured $110 million for electrolyzer technology development
- Koloma (USA): Raised $246 million in a Series B round for geologic hydrogen resource commercialization
Government support is also bolstering the sector, with the U.S. Department of Energy announcing $750 million for 52 projects aimed at reducing clean hydrogen costs and supporting U.S. leadership in the industry.
Challenges and setbacks
Despite the overall positive trend, the hydrogen sector is not without its challenges. Hyzon Motors, a venture-backed developer of hydrogen fuel cell systems for trucks, serves as a cautionary tale. Since going public in 2021, the company has faced significant difficulties:
- Its shares lost over 99% of their value
- The company recently announced a 1-for-50 reverse split to maintain its listing status
This example highlights the risks associated with rapid growth and the importance of solid business fundamentals in the volatile clean energy market.
Future outlook and implications
The continued influx of private investment into hydrogen startups, despite a challenging IPO environment, suggests strong confidence in the sector’s long-term potential. This sustained funding boom is likely to drive several key developments:
- Technological advancements: Increased funding will accelerate research and development, potentially leading to breakthroughs in hydrogen production, storage, and utilization.
- Cost reduction: As technologies mature and scale, the cost of hydrogen production and related technologies is expected to decrease, making hydrogen more competitive with traditional energy sources.
- Infrastructure development: Investments in hydrogen startups will likely spur the development of necessary infrastructure, such as hydrogen fueling stations and transportation networks.
- Environmental impact: As hydrogen technologies mature and become more widespread, they have the potential to significantly reduce greenhouse gas emissions across various industries.
The hydrogen startup funding boom represents a critical step towards a cleaner, more sustainable energy future. While challenges remain, the sustained interest from investors and governments alike suggests that hydrogen will play a pivotal role in the global transition to renewable energy sources.