Wollongong green hydrogen startup Hysata raises $172 million in Series B funding

Wollongong-based green hydrogen startup Hysata has received backing from heavy-hitting global investors in a $172 million (US$111 million) funding round that is being described as Australia’s largest-ever Series B round by a cleantech startup.

Hysata has pioneered a high-efficiency electrolyser that promises to transform how green hydrogen is produced and help accelerate the decarbonisation of sectors like steel making, chemical manufacturing and heavy transport.

The massive funding injection comes less than a year after the startup received around $24 million in grant funding from the Commonwealth and Queensland governments to help it undertake a commercialisation project in Rockhampton, Queensland.

The venture arm of oil and gas powerhouse bp co-led the round with Hong Kong-based alternative asset management firm Templewater, with each contributing US$10 million.

Existing strategic and financial investors also participated, including IP Group Australia, Kiko Ventures (the cleantech platform of IP Group plc), Virescent Ventures on behalf of Clean Energy Finance Corporation, Hostplus, Vestas Ventures and BlueScopeX.

Other new investors to back Hysata include POSCO Holdings, POSCO E&C, IMM Investment Hong Kong, Shinhan Financial Group, Twin Towers Ventures, Oman Investment Authority’s VC arm IDO and TelstraSuper.

Hysata’s “game-changing impact” on hydrogen sector

Hysata plans to use the funding to expand its production capacity to reach gigawatt-scale manufacturing of its electrolyser, which requires much less energy to convert water to hydrogen compared to available alternatives.

Armed with this tech, CEO Paul Barrett says Hysata is aiming to “drive down the levelised cost of hydrogen” from its beachside manufacturing facility in Wollongong.

“This funding round, backed by a world-class syndicate of investors, demonstrates the game-changing impact Hysata is having on the green hydrogen landscape,” Barrett said in a statement on Thursday morning.

“It will strengthen our team and enhance our capabilities, as we propel towards widespread commercial availability.”

According to Hysata, if its electrolysers are used at scale, they could achieve energy efficiency well above the 2050 efficiency target of the International Renewable Energy Agency.

“We know that green hydrogen can play a big role in decarbonisation,” said Gareth Burns, vice president of co-led investor, bp Ventures.

“This is the first advanced alkaline electrolyser technology that bp Ventures has invested in. It could provide optionality for our hydrogen business as bp aims to become a global leader in low carbon hydrogen production.”

“Hysata’s technology could help save energy and reduce production costs, addressing two challenges of the green hydrogen market. We’re excited for Hysata’s next steps.”

Hysata currently employs a team of around 75 staff. It hopes to grow that number to more than 200 employees over the coming years as it also expands outside of Australia.

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