Stargate Hydrogen, an Estonian manufacturer of innovative electrolyser stacks and systems, has raised €11 million in Series A funding. The round saw participation from strategic customers and financial investors, including Giga, UG Investments, and SmartCap Green Fund, a state-backed venture capital fund focused on greentech.
This funding will enable Stargate to scale manufacturing, expand internal testing, and build strategic partnerships in the global green hydrogen ecosystem.
What challenge does it tackle?
Affordable green hydrogen is the key to decoupling the production of chemicals and commodities (like steel) from CO2 emissions. Green hydrogen is a critical component in decarbonising industries such as steel and chemicals, which traditionally rely on fossil fuels. However, high production costs have hindered widespread adoption.
Marko Virkebau and Rainer Küngas in 2021 in Estonia, Stargate Hydrogen is tackling this challenge by developing high-efficiency electrolysis equipment that reduces energy consumption and lowers investment costs.
A breakthrough in green hydrogen production
Unlike traditional electrolysers that use precious metals as catalysts, Stargate employs a proprietary ceramic-based catalyst material. This innovation enhances efficiency, minimises equipment degradation, and improves the reliability of hydrogen production over the project lifecycle.
The company’s proprietary stack technology has been independently validated by the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) in Stuttgart, one of Europe’s leading test centers for electrolysis equipment. Additionally, the European Commission has recognised Stargate as an Important Project of Common European Interest (IPCEI), underscoring its strategic significance in Europe’s clean energy transition.
Clients base and customer support
Stargate Hydrogen’s technology has attracted interest from major industry players. Recently, Fortum, a Nordic utility giant, selected Stargate to supply electrolysis equipment for its alkaline electrolysis plant in Loviisa, Finland. Other notable customers include Utilitas and ABB, further solidifying Stargate’s position in the green hydrogen sector.
The company has now raised over €50 million in combined equity and grants, positioning it as a key player in Europe’s hydrogen revolution. With this latest funding, Stargate is set to accelerate its mission of making green hydrogen a cost-competitive and scalable alternative to fossil fuels.
The road ahead
As demand for green hydrogen grows globally, efficiency and cost reduction remain top priorities. Stargate’s ceramic-based electrolysis technology presents a compelling solution for industries looking to transition to cleaner energy sources. With strong financial backing and increasing market validation, the company is well-positioned to lead the charge in making hydrogen a mainstream energy carrier.
“We are thrilled to have SmartCap and Giga joining our ownership structure, along with additional investment from UGI,” said Marko Virkebau, CEO of Stargate Hydrogen. “To have strategic customers investing into the company is the strongest testament to the progress we made. This funding gives us firepower to execute our roadmap, enhance our production capabilities, and provide our customers with electrolysis technology that allows significant cost-down on the price of green hydrogen.”
“We decided to invest in Stargate Hydrogen due to their highly innovative approach to green hydrogen production, accompanied by impressive list of customers and strong unit economics. In order to realise the green energy transition, we need companies like Stargate that innovate on the material level and can radically bring down the cost of the energy transition,” said Sille Pettai, CEO of SmartCap and Fund Manager of SmartCap Green Fund, funded by the European Union’s NextGenerationEU.
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