Green hydrogen group Hysata backed by energy giant BP in monster $172m Series B

Green hydrogen group Hysata backed by energy giant BP in monster $172m Series B

Hysata CEO Paul Barrett

Wollongong-based green hydrogen electrolyser manufacturer Hysata has gained the backing of the investment arm of global oil giant BP after raising US$111 million ($172 million) in what is said to be the largest clean tech Series B in Australia’s history.

BP Ventures, which has invested $1 billion in 70 companies to deliver on the energy producer’s net zero ambitions, has teamed with Hong-Kong-based investment group Templewater to lead Hysata’s latest round, which has also been backed by existing investors IP Group Australia, Kiko Ventures, Virescent Ventures, Hostplus, Vestas Ventures and BlueScopeX.

The Series B raise has also led to a swag of new investors joining Hysata’s share register, including POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group, Twin Towers Ventures, Oman Investment Authority’s venture-capital arm IDO and TelstraSuper.

The latest round follows an oversubscribed $42.5 million Series A raise in 2022, which was led by Virescent Ventures on behalf of the Clean Energy Finance Corporation (CEFC).

Today's announcement delivers a major vote of confidence for Hysata’s mission to deliver green hydrogen at scale and transform the economics of the emerging energy source.

Hysata’s technology is said to deliver more energy efficient green hydrogen at a lower cost to alternative technologies. It does so by combining engineering and science in a unique capillary-fed alkaline electrolyser that uses less energy to convert water to hydrogen.

“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,” says Hysata CEO Paul Barrett.

“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.”

Hysata plans to use the capital funding to expand production capacity at its manufacturing facility in Wollongong while further developing its technology with a focus on reaching gigawatt scale manufacturing. 

The company already employs a team of about 75, attracting talent from major corporations such as Apple, BHP and McKinsey, and plans to expand to more than 200 employees over the next couple of years while expanding its presence internationally.

 

Hysata's beachfront manufacturing facility in Wollongong 

 

“We know that green hydrogen can play a big role in decarbonisation,” says Gareth Burns, the vice president of BP Ventures.

“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 notes the International Energy Agency’s observations that, to meet climate ambitions, there is a need to switch hydrogen use in existing applications to low-carbon hydrogen and to expand its use to new applications in heavy industry or long-distance transport.

Hysata says that, at scale, its electrolysers could achieve energy efficiency well above International Renewable Energy Agency’s 2050 efficiency target.

Alfred Wong, partner of Templewater, says his company is thrilled to be “driving the green revolution” by jointly leading its impactful investment in Hysata.

“The high efficiency of Hysata's electrolyser technology holds the potential to be a cornerstone in the worldwide shift to sustainable energy sources,” says Wong.

“Our investment in Hysata is a testament to Templewater's commitment to support mission-driven companies that are working towards solving the world’s biggest climate challenges.” 

Hydrogen is among BP’s transition growth engines that it plans to grow by the end of the decade. The oil giant has several regional hydrogen energy hubs under development, including in Australia. Among them is H2 Kwinana and the Australian Renewable Energy Hub in Western Australia’s Pilbara region.

Hysata was launched in 2021 with $5 million in seed funding from lead investor IP Group Australia and supported by CEFC.

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