Wollongong-based electrolyser startup Hysata, which is developing production methods for low-cost green hydrogen, has raised $172 million (US$111.3m) in a Series B, a record for clean tech in Australia.
The round was co-led by the venture arm of oil industry giant bp, and Investec’s Hong Kong-based alternative investment firm Templewater, with both chipping in US$10m (A$15.2m).
Existing 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, also chipped in on the Series B.
New to the cap table are POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group, Twin Towers Ventures, Oman Investment Authority’s VC arm IDO and TelstraSuper.
Founded in 2021 by tech entrepreneur Dr Paul Barrett, electrolysis expert Gerry Swiegers and renewables guru Tom Campey, Hysata has designed a new kind of electrolyser, the component in an electrolysis cell used to split water into hydrogen and oxygen.
It’s 20% more efficient than existing technology and makes it faster, simpler and more affordable to transition to renewables.
Hysata has the potential to transform sectors such as steel, chemicals, high-grade heat and heavy transport with its product.
The funding will be used to expand production capacity in Wollongong, and further develop its technology as it focuses on reaching gigawatt scale manufacturing.
The company currently has around 75 staff, but hopes to grow to 200 employees over the next couple of years, expanding its footprint across multiple continents.
CEO Paul Barrett said support for the raise from global investors demonstrates the game-changing impact Hysata is having on the green hydrogen sector.
“It will strengthen our team and enhance our capabilities, as we propel towards widespread commercial availability,” he said.
“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.”
Barrett said they set out to accelerate the deep decarbonisation of hard-to-abate sectors such as steel, chemical manufacture, and heavy transport, with the world’s most efficient, simple, and reliable electrolysers.
Gareth Burns, Vice President of bp Ventures, said hgydrogen is one of bp’s transition growth engines and the company has a number of regional hydrogen energy hubs it is developing globally, including H2 Kwinana and the Australian Renewable Energy Hub (AREH) locally.
“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,” he said.
“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.
Templewater partner Alfred Wong is similarly impressed, saying: “The high efficiency of Hysata’s electrolyser technology holds the potential to be a cornerstone in the worldwide shift to sustainable energy sources.”
Hysata was named Startup of The Year in the 2023 Startup Daily Best in Tech Awards.
Entries for the 2024 Best in Tech awards open this Monday, May 13.
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