Hysata bags $111m Series B investment for novel electrolyser tech

Australia-based company Hysata has raised $111.3 million in a Series B funding round with bp Ventures and asset manager Templewater contributing $10 million each.

Hysata is developing unique capillary-fed alkaline electrolysers to produce green hydrogen at scale with higher energy efficiency and lower costs than alternative technologies.

The latest investment round, which Hysata claims is one of the largest in Australian clean tech history, saw new financial backing from POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group, Twin Towers Ventures, Oman Investment Authority's VC arm IDO and TelstraSuper.

Hysata plans to use the funding to expand production capacity and further develop its technology as it focuses on reaching gigawatt scale manufacturing.

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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...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."

Hydrogen is one of bp's key strategic focuses. The energy company is currently developing a number of regional hydrogen energy in Australia, such as H2 Kwinana and the Australian Renewable Energy Hub.

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."

Hysata's new investors join 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.