Clean energy investment fund Hydrogen One Capital Growth has bought in to Estonia.

The fund, founded last year with backing from Sir Jim Ratclifffe’s Ineos, has paid £20 million for a minority stake in Elcogen, a electrolyser and fuel cell maker.

The Tallinn-based acquiree boasts what are described as ‘distinctive solid oxide technologies’, plus sixty established industrial customers.   A seat on its board completes the deal.

En route to synthesising green hydrogen, Elcogen’s solid oxide kit claims a world-beating70% conversion rate from feedstock to electricity, all achieved at temperatures lower than its rivals’ offerings.  Savings in running costs thus result, lowering prices paid by clients.

Elcogen says its solid oxide fuel cell (SOFC) and solid oxide electrolyser cell (SOEC) technologies can be applied to a range of residential, industrial and commercial applications. Solid oxide fuel cells and electrolysers can run with efficiency greater than 80%.

Elcogen wants to expand its factory in Tallinn, automating production of its solid oxide fuel cells and stacks.  Output will grow at first to 25MW per year, rising to 50MW.   The firm says the expansion equates, in electrolysis mode, to a doubling, up to 200MW.

HydrogenOne chair Simon Hogan observed a “substantial demand for fuel cells and electrolysers as the clean hydrogen sector continues to grow at rapid pace.

“We look forward to supporting Elcogen on its growth journey as it expands its solid oxide capacity for customers”, the investment firm’s boss added. “HydrogenOne continues to deploy our investors’ capital into distinctive and high potential hydrogen assets.”

The Estonian enterprises’ existing investors include VNTM Powerfund II, a Helsinki-based clean power technology fund, and Biofuel OÜ, an Estonian fund with origins in forestry.

Elcogen CEO Enn Õunpuu, commented “We believe the fuel of the future is green hydrogen. Our technology is a key enabler in making this transition affordable for everyone.

“This investment from HydrogenOne will enable us to continue to develop our cutting-edge technology, grow our customer base and revenues, and scale production to drive net-zero ambitions forward”, Õunpuu  added.


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