Hydrogen Startup Funding Continues To Boom

A few months ago, we wrote about a boom in funding to startups focused on hydrogen energy.

As it turns out, the cycle is not over. Rather, companies tied to low-emission hydrogen have continued to land big rounds for technologies tied to producing fuel and developing hydrogen-powered batteries and engines.

The most recent to do so is , a developer of hydrogen-powered airplane engines. The Hollister, California-based company last week that it completed an extension round that brings its Series C to $150 million. joined as the newest investor, as ZeroAvia pursues a manufacturing facility in Scotland.

Per SA国际传媒 , at least 23 hydrogen-focused startups globally have secured financing so far this year, bringing in over $1.4 billion in equity funding.

The companies, listed below, are targeting niches ranging from heavy-duty hydrogen-powered trucks to identifying and commercializing geologic hydrogen sources. Others are developing or scaling production of electrolyzers, devices that use electricity to split water into hydrogen and oxygen.

China鈥檚 leading role

China, which has seen a sharp overall slowdown in startup investment, remains a hot spot for hydrogen-related funding. The country ranks as the global leader in of electrolyzers, per the . It鈥檚 also the top electrolyzer manufacturer, accounting for 40% of the global supply.

Investment to Chinese hydrogen-focused startups and growth-stage companies reflects the country鈥檚 leading role. Companies that raised large rounds this year include , a green hydrogen company, , a developer of hydrogen power-supply technology, and , a liquid hydrogen supplier.

A global funding phenomenon

However, there鈥檚 also plentiful funding to other regions, as evidenced by this year鈥檚 larger rounds.

For instance this spring, Australia-based , a developer of electrolyzer technology, picked up $110 million in a financing co-led by and .

A larger round came earlier this year when Denver-based , which focuses on identifying and commercializing geologic hydrogen resources, closed on the largest early-stage round for the space, landing $246 million in a Series B led by .

Government funding is also boosting the sector. One of the bigger infusions came in March, when the $750 million for 52 projects aimed at cutting the cost of clean hydrogen and supporting U.S. leadership in the industry. More than half of the funding will go to electrolyzer manufacturing and supply chain efforts.

Not everyone is on the rise

The upturn in hydrogen-related funding activity hasn鈥檛 translated into good times for everyone in the space.

One that hasn鈥檛 fared so well is , a venture-backed developer of hydrogen fuel cell systems for trucks and other industrial applications that went public in 2021. Last week, the Illinois-based company that it was carrying out a 1-for-50 reverse split, after seeing shares shed more than 99% of their value since its debut.

While Hyzon鈥檚 aim to decarbonize fleet trucking sounds laudable, investors haven鈥檛 found similar appeal in its financials. In its last quarter, the company had just $300,000 in revenue and an average monthly cash burn of $9.2 million.

Like many companies that went public during the 2021 market boom, Hyzon had to cope with drastically changing investor preferences.

For still-private hydrogen-focused companies, however, the current IPO environment doesn鈥檛 look welcoming. So it鈥檒l likely be a while before we see many tapping the public markets. Fortunately for now, private investors remain pretty enamored with the space.