Elcogen plc secures €24 million investment from HydrogenOne

Rothschild & Co and Arrowpoint Advisory are delighted to have advised the shareholders of Elcogen plc, the European manufacturer of clean energy technology that delivers affordable green hydrogen and emission-free electricity, on securing a €24 million investment from Hydrogen Capital Growth plc to help expand its capabilities in enabling the production of green hydrogen using its reversible solid oxide cell technology.

Elcogen’s patented technology sits at the heart of the solid oxide cells and stacks which it manufactures can be used in both electrolysis (producing green hydrogen) or fuel cell mode (generating electricity) and are reversible. Whilst its stacks offer market leading efficiencies at greater than 80%, it also has the embedded advantage of using readily available raw materials, providing a substantial advantage in the drive to reduce over electrolyser system costs.  

The result is that this core technology has an important role to play in energy transition, supporting energy security and the transition away from fossil fuels, by bringing affordable green hydrogen closer to reality.

This investment will be used towards the expansion of Elcogen’s facilities in Tallinn to create a new, automated production line for solid oxide fuel cells, initially scaled at 25MW/year, rising to 50MW/year (equivalent to 100MW- 200MW in electrolysis mode) as well as facilitating the expansion of its team to service and further expand on its 60+ established industrial customers world-wide.

Elcogen’s solid oxide fuel cells and electrolysers run at the lower end of the temperature range for solid oxide systems, making it well suited to industrial grade temperatures and enabling it to deliver improved degradation and performance characteristics compared to its competitors.

HydrogenOne was launched in 2021 with an investment objective to deliver an attractive level of capital growth by investing in a diversified portfolio of hydrogen and complementary hydrogen focused assets. HydrogenOne will gain a minority stake in Elcogen and have the right to a board seat which they are expected to take.

Enn Õunpuu, CEO of Elcogen, commented: “We believe the fuel of the future is green hydrogen and our technology is a key enabler in making this transition affordable for everyone. We develop and manufacture the world’s most efficient solid oxide technology, allowing our customers and partners to deliver emission-free electricity, green hydrogen and energy storage solutions. This investment from HydrogenOne will enable us to continue to develop our cutting-edge technology, grow our customer base and revenues, and scale production to drive net-zero ambitions forward.”

Simon Hogan, Chairman of HydrogenOne, said: “There is substantial demand for fuel cells as the clean hydrogen sector continues to grow at rapid pace. We look forward to supporting the company on its growth journey as it expands its solid oxide capacity for customers. HydrogenOne continues to deploy our investors’ capital into distinctive and high potential hydrogen assets.”

Ian Brown, Managing Director of Arrowpoint Advisory, noted: “We are thrilled to be advising Elcogen on its private capital fund raise to support its expansion and growth plans and are excited about the potential this technology can bring to accelerating the pace of our energy transition.”

Rob Barnes, Managing Director of Rothschild and Co, concluded: “We have seen a significant change in the appetite for investment in Hydrogen in both the financial and industrial sectors, particularly in the last 12 months, which creates an exciting environment for Elcogen to continue its important journey and we are delighted to be playing our part in supporting its growth.”

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