Estonia’s PowerUP gets €10M to expand its hydrogen generator business in new markets

PowerUP has raised €10M to expand its operations and further develop its hydrogen-based power systems.

Tallinn-based PowerUP Energy Technologies has secured €10M in Series A funding to increase production and advance the market rollout of its hydrogen-powered electric generators.

The round was co-led by Mercaton and ScaleWolf, with participation from SmartCap Green Fund, which is supported by the European Union’s NextGenerationEU program.

SmartCap is Estonia’s state-owned venture capital fund manager that supports innovation and economic growth. The SmartCap Green Fund, financed through the European Union NextGenerationEU program, invests in Estonian green technology companies with strong growth prospects.

Dave Harden, Partner at ScaleWolf, says, “At ScaleWolf, we value technologies that strengthen security and resilience where it matters most. PowerUP has shown that its systems can deliver dependable power in demanding environments, supporting both defence missions and essential civilian operations.”

“We are proud to back a team that turns proven performance into meaningful dual-use capability.”

The funds will support wider deployment of PowerUP’s generator technology, designed for operation in varied and high-pressure environments.

PowerUP continues to build its dual-use strategy, supplying energy systems for defence needs as well as for commercial sectors that require continuous power, including security and telecommunications.

PowerUP’s vision

PowerUP Energy Technologies builds hydrogen fuel cell systems for defence, industrial use, and off-grid operations. The company began in 2016 and focuses on modular units that generate power through an electrochemical process.

PowerUP’s systems have gained international recognition after deployment and testing in regions that present harsh conditions, including Ukraine. These field operations show that the units can continue to deliver power with limited disruption. 

Many organisations use these systems to strengthen energy sovereignty, with an emphasis on secure power supply and independent operation.

The company produces generators that run with low sound output and without exhaust emissions. This enables use in forward-operating defence units that require quiet power sources, as well as in civilian infrastructure such as telecom towers and shelters that rely on nonstop operation.

PowerUP’s technology originates from work conducted with the European Space Agency. Designs created for space missions now support defence and remote-area needs, where users depend on systems that function without external support for extended periods.

Through this approach, PowerUP supplies hydrogen-based power solutions that operate in locations where conventional generators face limits.

Sille Pettai, Managing Director of SmartCap, says, “PowerUP is a great example of a broadly applicable green tech company that can capture the changing market opportunities of green transition and quickly address new market needs in defence.”

“PowerUP develops and manufactures hydrogen fuel cell generators as main power, backup power or battery extender solutions for reliable and sustainable energy. This has also turned to be a critical technology for modern defence and security applications, like enabling advanced communication networks and surveillance systems with low noise, vibration, and heat signature, where the choice of tech is driven first and foremost by reliability and performance rather than climate objectives.”

Capital utilisation

PowerUP will use the funds across commercial operations, international expansion, and product development.

The company will expand sales and technical support teams to enter additional commercial markets that use backup power for infrastructure. It will set up sales and service hubs in Central Europe, North America, and other target regions to provide local support and respond to global demand for energy solutions.

The company will also advance work on fuel cell models with increased power output to meet varied power needs.

Ivar Kruusenberg, founder and CEO of PowerUP, says, “PowerUP was founded on a clear mission: to deliver clean, reliable energy solutions. While other technologies are still being tested in labs, ours has already been battle-tested on the front lines in Ukraine. This is the very definition of dual-use innovation: a cleantech solution that has been forged and validated by the urgent needs of defence.”

“This capital will directly allow us to expand our network of resellers, distributors and partners in defence and in the commercial sector.”

Brief about the lead investors

The Mercaton Investment Group is a venture capital firm that invests in technological innovation, safety and security, and deeptech in the Central and Eastern European region. The firm operates from Poland, Germany, and Liechtenstein.

ScaleWolf is a venture capital fund based in Lithuania that invests in dual-use technologies. The fund focuses on deeptech solutions that serve defence and commercial markets at the same time, using military requirements as a path to commercial adoption.