Energy technology firm Baker Hughes has participated in €140m in capital commitments received by HydrogenOne Capital Growth’s portfolio company Elcogen.
London-listed clean hydrogen investment firm HydrogenOne said Elcogen has secured the “strategic investment” from Baker Hughes as part of the €140m raised to help the company expand its solid oxide cell technology (SOEC) for green hydrogen.
This combined investment from Baker Hughes and Mirae Asset Global Investments, HydrogenOne’s €24m anchor equity investment in 2022 and HD Hyundai’s investment of €45m in 2023 brings Elcogen’s total equity raised to around €100m.
In addition to equity financing, Elcogen has secured project grants from the European Commission, including an IPCEI grant exceeding €24m, and plans to issue €15m in debt financing. Altogether, Elcogen has raised over €140m in funding since 2022.
Founded in 2001, Elcogen is a European manufacturer of clean-energy technology that delivers affordable green hydrogen and emission-free electricity.
The company will use the capital raised to expand its manufacturing capacity as it continues to build a new factory facility in Tallinn, Estonia, with a manufacturing capacity of up to 360MW.
Elcogen plans to team up with HD Hyundai and Baker Hughes on green hydrogen solutions using its SOEC technology.
JJ Traynor, managing partner of HydrogenOne Capital LLP, the company’s investment adviser, said: “This investment marks another important milestone for HydrogenOne’s second largest portfolio investment. Baker Hughes is a leading energy technology company, and is a further important strategic investor in Elcogen, alongside HD Hyundai.
“This is another powerful endorsement of Elcogen’s technology and capabilities in solid oxide supply chains.”
Chris Nash, chairman of Elcogen, said: “We are delighted to welcome Baker Hughes as a strategic shareholder. I believe this is a significant vote of confidence in our technology from a leading energy technology company.”
Enn Õunpuu, CEO of Elcogen, said: “There is a huge amount of pressure for heavy industries to decarbonise and meet net-zero targets . We are very pleased that Baker Hughes has invested in Elcogen, recognising the role our proprietary solid oxide technology has in supporting the energy transition.”
Alessandro Bresciani, SVP of climate technology solutions at Baker Hughes, said: “This investment further demonstrates our commitment to support the energy transition and the development of the hydrogen economy, which we believe will be an essential part of the energy mix of the future.
“Today’s announcement underscores our strategy in collaborating to build out solutions that can enable the decarbonisation of the energy ecosystem and marks another significant milestone in our journey to continue to expand our portfolio across the hydrogen value chain.”
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