Australian electrolyzer firm raises $111 million in Series B investment round led by BP

In what has been described as the largest Series B investment round in Australian clean tech history, electrolyzer company Hysata has raised $111 million led by BP Ventures and Templewater.

On May 8, Hysata announced the closing of the Series B round in which BP Ventures and Templewater each invested $10 million, with 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.

The company also welcomed new major 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.

Hysata said it will use the funding to expand production capacity at its electrolyzer manufacturing facility in Wollongong, New South Wales, and further develop its technology as it focuses on reaching gigawatt-scale manufacturing.

Australia-based company is developing new high-efficiency electrolyzers that aim to produce green hydrogen at scale with higher energy efficiency and lower costs than alternative technologies.

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.

“This funding round, backed by a world class syndicate of investors, demonstrates the game changing impact Hysata is having on the green hydrogen landscape. It will strengthen our team and enhance our capabilities, as we propel towards widespread commercial availability.

“I am thrilled to have bp Ventures, Templewater and other new investors join ranks with our incredible existing shareholder base. Hysata’s technology is a breakthrough innovation because of its high efficiency and low installed costs. We look forward to working with our shareholders, customers and partners as we continue our scale up journey.”

Gareth Burns, Vice President of BP Ventures, added: “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. We’re excited for Hysata’s next steps.”

Hydrogen is one of BP’s transition pillars that the company plans to grow by the end of the decade. BP has a number of regional hydrogen energy hubs it is developing, including in Australia, such as H2 Kwinana and the Australian Renewable Energy Hub (AREH).