Receiving a funding of EUR 500m, Sunfire, the manufacturer of electrolyzers, aims to enhance its growth on a larger scale

German electrolyser maker Sunfire GmbH has at its disposal roughly EUR 500 million (USD 542.4m) in fresh capital to speed up its growth by enhancing the development of its products in a bid to meet the growing demand for electrolysis technologies.

The Dresden-based company said on Tuesday it has raised EUR 215 million in a Series E equity financing round through which LGT Private Banking, GIC, Ahren Innovation Capital, and Carbon Equity have joined as new investors. Some existing shareholders have also participated in the round and lifted their investment in the company. Among them are Lightrock, Planet First Partners, Carbon Direct Capital, the Amazon Climate Pledge Fund, and Blue Earth Capital.

The transaction is pending regulatory clearance and is expected to close in the second quarter.

Separately, the European Investment Bank (EIB) is providing Sunfire with a loan of up to EUR 100 million to back the development and industrialisation of its solid oxide electrolysers. The company’s efforts will be further supported with some EUR 200 million in previously approved undrawn grant funding.

“With this new capital, we are uniquely positioned to further accelerate our company’s growth and industrialisation plans to meet the fast-growing demand for electrolysis technologies,” said CEO Nils Aldag.

Founded in 2010, Sunfire makes alkaline water electrolysis (AEL) and high-temperature (SOEC) electrolysers for renewable hydrogen and syngas. The company’s goal is to install several gigawatts of electrolysis equipment by 2030 in large-scale green hydrogen projects.