Illustration: Gabriella Turrisi/Axios
Hystar, an Oslo, Norway-based developer of ultra-efficient hydrogen electrolyzers, closed a $26 million Series B round that was led by industry heavyweights and hydrogen-focused investors.
Why it matters: Hystar says the funding will enable it to reach commercial operation — bringing a new challenger to the increasingly crowded hydrogen production markets.
What's happening: Mitsubishi, the Japan-based conglomerate, and AP Ventures, a London-based VC largely focused on hydrogen, led the round.
- Finindus, Nippon Steel Trading, Hillhouse Investment and Trustbridge Partners participated, as did existing investors Sintef Ventures and Firda.
- The all-equity round closed Jan. 2.
Driving the news: Hystar figured out how to integrate a very thin membrane into the electrolyzers that are commonly used to make green hydrogen.
- That enables a company to either consume 10%-15% less electricity or generate 150% more hydrogen.
Plus: Those ultra-thin membranes are already used in fuel cells — meaning the supply chain already exists.
Be smart: Hystar's efficiency gains are especially attractive for steel production, fertilizer manufacturing and other heavy industries that use huge amounts of electricity and heat.
👀 What we're watching: Hydrogen incentives in the Inflation Reduction Act have accelerated internal discussions about expanding to the U.S.
- "That's one area we will prioritize," Hystar CEO Fredrik Mowill tells Axios.
- "We will be looking to either partner up with companies in the U.S. or establish a presence there ourselves in the near to medium term."