Australia-based company Hysata is developing new high-efficiency electrolyzers that aim to produce green H₂ at scale with higher energy efficiency and lower costs than alternative technologies. The company’s technology combines engineering and science in a unique capillary-fed alkaline electrolyzer that uses less energy to convert water to H₂.

bp Ventures and Templewater led the recent $111.3-MM investment round in the company, with strong backing from existing major strategic and financial investors IP Group Australia, Kiko Ventures (IP Group plc’s cleantech platform), Virescent Ventures on behalf of Clean Energy Finance Corporation, Hostplus, Vestas Ventures and BlueScopeX.

The company also welcomed new major strategic and financial investors 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 will use the funding to expand production capacity at its iconic beachside manufacturing facility in Wollongong, New South Wales and further develop its technology as it focuses on reaching gigawatt scale manufacturing.

Hysata CEO, Paul Barrett said, “Our mission at Hysata is to accelerate the deep decarbonization of hard-to-abate sectors such as steel, chemical manufacture, and heavy transport, by delivering the world’s most efficient, simple, and reliable electrolyzers. With high-efficiency, intrinsically low capex and a mass-manufacturable design, Hysata aims to drive down the levelized cost of H₂.

“This funding round, backed by a world class syndicate of investors, demonstrates the game changing impact Hysata is having on the green H₂ landscape. It will strengthen our team and enhance our capabilities, as we propel towards widespread commercial availability.

“I am thrilled to have bp Ventures, Templewater and other new investors join ranks with our incredible existing shareholder base. Hysata’s technology is a breakthrough innovation because of its high efficiency and low installed costs. We look forward to working with our shareholders, customers and partners as we continue our scale up journey.”

The International Energy Agency has said that to meet climate ambitions, there is an urgent need to switch H₂ use in existing applications to low carbon H₂ and to expand its use to new applications in heavy industry or long-distance transport. At scale, Hysata’s electrolyzers could achieve energy efficiency well above International Renewable Energy Agency’s 2050 efficiency target.

Gareth Burns, Vice President of bp Ventures said, “We know that green H₂ can play a big role in decarbonization. This is the first advanced alkaline electrolyzer technology that bp Ventures has invested in. It could provide optionality for our H₂ business as bp aims to become a global leader in low carbon H₂ production.

“Hysata’s technology could help save energy and reduce production costs, addressing two challenges of the green H₂ market. We’re excited for Hysata’s next steps.”

Alfred Wong, Partner of Templewater said, "We are thrilled at Templewater to be driving the green revolution, jointly leading this impactful investment in Hysata. The high efficiency of Hysata's electrolyzer technology holds the potential to be a cornerstone in the worldwide shift to sustainable energy sources. Our investment in Hysata is a testament to Templewater's commitment to support mission-driven companies that are working towards solving the world’s biggest climate challenges.”

H₂ is one of bp’s transition growth engines that it plans to grow by the end of the decade. bp has a number of regional H₂ energy hubs it is developing, including in Australia, such as H₂ Kwinana and the Australian Renewable Energy Hub (AREH).