Tallinn-based Stargate Hydrogen has completed its Series A funding round, securing €11M in equity investments. The Estonian company manufactures electrolyser stacks and systems.
The round includes investments from strategic customers with experience in renewable energy and utilities, such as Giga and UG Investments. SmartCap Green Fund, a state-backed venture capital fund focused on greentech companies, also participated in the round.
Sille Pettai, CEO of SmartCap and manager of SmartCap Green Fund, says, “We decided to invest in Stargate Hydrogen due to their highly innovative approach to green hydrogen production, accompanied by an impressive list of customers and strong unit economics.”
“Funding the scale of manufacturing of innovative green technologies is central to the green transition and our strategic objectives, as it enables wider adoption of sustainable energy solutions.”
Next-generation green hydrogen electrolysers
Stargate Hydrogen is working on production equipment aimed at reducing the cost of green hydrogen through higher efficiency. The company uses ceramic-based catalyst material instead of precious metals to lower energy consumption and investment costs.
Stargate has developed proprietary stack technology to improve the reliability of hydrogen production and minimise equipment degradation. These innovations aim to enhance unit economics and increase returns for green hydrogen project developers.
ZSW in Stuttgart, a European electrolysis equipment test center, has validated the performance of Stargate’s stacks. The European Commission has recognised the company’s technology as an Important Project of Common European Interest. Recently, Fortum selected Stargate as the supplier for its alkaline electrolysis plant in Loviisa, Finland.
The company’s latest investment round increases total committed capital, including equity and grants, to over €50M.
Capital utilisation
Stargate Hydrogen will use the proceeds to scale its manufacturing capacity, enhance internal testing capabilities, and establish strategic partnerships with key players in the global green hydrogen sector.
Marko Virkebau, CEO of Stargate Hydrogen, says, “We are thrilled to have SmartCap and Giga joining our ownership structure, along with additional investment from UGI. 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. Our view is that only companies with unique, proprietary technology will survive through the current green hydrogen market cycle.”
Brief about SmartCap
SmartCap, Estonia’s state-owned venture capital fund manager, invests in innovative technology companies and strengthens the country’s venture capital market.
The SmartCap Green Fund focuses on supporting Estonian green technology companies with high growth potential. Through both fund-of-funds and direct investments, it targets sectors such as energy, agriculture, food, transport, logistics, materials, chemicals, and the environment.
The fund aims to improve access to equity funding for greentech companies while aligning with Estonia’s strategic and environmental goals.
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