HYDGEN, a deep tech startup dedicated to creating a scalable green hydrogen technology, has been able to raise $5 million in a funding round. This large capital inflow, which is guaranteed by a combination of both equity and debt, will go a long way in speeding up the company in its quest to introduce ultra-pure and cost-effective hydrogen directly to the point of consumption in the different industries. 

Utilization of fresh capital and core strategy

Transition VC led the $5 million funding round, with prominent involvement of a variety of international and strategic investors. These were Cloudberry Pioneer Investments (Europe) and Moringa Ventures (Singapore), and strategic family office investments in India and Singapore. The commercial viability and promise of the proprietary technology designed by HYDGEN in the high-energy green environment have been proven by the successful completion of this round.

The capital raised will be used in a number of strategic goals, which will be important in the growth of the company. HYDGEN intends to modernize its current plant in Mangalore to a semi-automated production line, thus increasing its production effectiveness and capacity. The capital will be employed in extending the single-stack system to 250 kW for the company. The investment will support the growth in foreign markets, with HYDGEN focusing on Japan, Europe, and the Middle East, where there is a high policy favoring the use of industrial hydrogen.

At the centre of HYDGEN’s strategy is its own proprietary Anion Exchange Membrane (AEM) electrolyser technology. The platform utilizes a hybrid system, masterfully integrating the principles of traditional alkaline with the superior performance features of a proton-exchange membrane (PEM) technology. The design also does not utilize expensive platinum-group metals, and this aspect makes it a low-capex design as well.

The proprietary stack designs used by HYDGEN, which are now 1 kW to 100 kW and are planned to be extended to 250 kW, are designed to produce ultra-high-purity hydrogen. This portable system will enable industries to get a cost-effective and dependable on-site hydrogen supply. The technology will help major hydrogen-dependent industries overcome significant supply chain issues that are currently plaguing the sector by allowing companies to generate hydrogen at the local level at a reasonable price. 

The Co-founder and COO of HYDGEN, Dr. Manipaddy Krishna Kumar, said, “Many discuss hydrogen’s focus on its role in a clean energy future, but the urgent opportunity is about enabling industries to have hydrogen where and when they need it, with purity they can trust. Our AEM electrolysers allow companies to produce hydrogen on-site at a competitive cost, solving supply chain challenges today while preparing them for the broader transition to green hydrogen in the years ahead.” 

Quotation Source: YourStory  

Challenges and cost-effectiveness

The modular AEM electrolysers of HYDrogen are developed to generate high-purity hydrogen cost-effectively. This on-site, on-demand generation can enable industries to eliminate costly logistics-related costs and achieve a great deal in the reliability of their overall hydrogen supply. This model has been decentralized to render hydrogen generation more efficient and affordable, which is a viable remedy that industries could use to attain decarbonization ambitions.

The complicated supply chain is a significant challenge in the hydrogen economy. Conventional practices generally necessitate centralized production and transport, which increases the cost of logistics and exposes the supply to vulnerabilities. By allowing on-site production, HYDGEN is addressing the problem of having hydrogen where and when required, and this is especially crucial to industrial clients who need a constant and high-quality supply. This is not only a solution to immediate supply chain problems but also prepares industries for a smoother introduction of green hydrogen in the years ahead. 

The Managing Partner at Transition VC, Mohamed Shoeb Ali, said, “HYDGEN is the first team we’ve seen capable of scaling AEM electrolysers to true industrial levels while maintaining cost leadership. This is no longer a research initiative but a commercially ready platform serving industries already dependent on hydrogen today.” 

The Managing Partner at Moringa Ventures, Khoong Hock Yun, said, “Decarbonisation needs solutions that are both green and practical. HYDGEN’s decentralised model makes hydrogen generation more efficient and accessible. The company plans to use the funds to upgrade its Mangalore facility to a semi-automated line, scale its single-stack capacity to 250 kW, and expand into Japan, Europe, and the Middle East—markets seeing strong policy support for industrial hydrogen.”

Quotations Source: YourStory  

Conclusion

The raising of $5 million by Transition VC is one of the significant milestones of the deeptech startup, HYDGEN. Using its proprietary AEM electrolyser technology, the firm is developing into a leader in the provision of a realistic, cost-efficient, and decentralised solution to the production of ultra-pure green hydrogen. HYDGEN is well-financed and is strategically positioned to satisfy increased industrial demand for affordable, reliable, and on-site green hydrogen to offer the world a cleaner energy future with plans to expand its facility, scale its technology to 250 kW, and enter key international markets.