Stargate Hydrogen, a green hydrogen equipment manufacturer based in Estonia, has raised €11 million in a Series A funding round to accelerate its production capabilities and strengthen its position in the European energy sector. Participants in the funding round include Giga, UG Investments, and the SmartCap Green Fund, which is a government-supported venture capital fund financed by the European Union’s NextGenerationEU program and focused on climate technology investments.
The company plans to use the new capital to boost manufacturing operations, develop in-house testing infrastructure, and expand its strategic network within the green hydrogen value chain. As the global demand for green hydrogen increases, reducing production costs remains a key challenge. Green hydrogen is particularly important for industries such as steel and chemicals, which are traditionally dependent on fossil fuels and are now facing pressure to decarbonize.
Founded in 2021 by Marko Virkebau and Rainer Kungas, Stargate Hydrogen is developing high-efficiency electrolysers aimed at reducing energy consumption and investment costs. The company’s technology differs from conventional electrolysers by using a proprietary ceramic-based catalyst instead of precious metals. This innovation offers increased efficiency, reduces material degradation, and enhances system reliability throughout the life cycle of hydrogen production facilities.
The effectiveness of Stargate’s proprietary stack design has been independently validated by the Centre for Solar Energy and Hydrogen Research Baden-Wurttemberg (ZSW) in Stuttgart, one of Europe’s leading testing centers for hydrogen technologies. Additionally, Stargate Hydrogen has been recognized by the European Commission as an Important Project of Common European Interest (IPCEI), highlighting its relevance in advancing the continent’s clean energy transition.
The company has already secured partnerships with several industrial customers. Recently, Fortum, a major energy utility in Finland, selected Stargate to supply electrolysis equipment for its alkaline electrolysis project in Loviisa. Other clients include Utilitas and ABB, reflecting growing interest in ceramic-based electrolysis solutions among established players.
With more than €50 million in combined equity and grants raised to date, Stargate Hydrogen is aiming to make green hydrogen a scalable and cost-effective alternative to fossil fuels. “We are thrilled to have SmartCap and Giga joining our ownership structure, along with additional investment from UGI,” said Marko Virkebau, CEO of Stargate Hydrogen. “To have strategic customers investing into the company is the strongest testament to the progress we made. This funding gives us firepower to execute our roadmap, enhance our production capabilities, and provide our customers with electrolysis technology that allows significant cost-down on the price of green hydrogen.”
Sille Pettai, CEO of SmartCap and Fund Manager of the SmartCap Green Fund, stated that the decision to invest was based on Stargate’s innovative material-level approach and solid customer base. “In order to realise the green energy transition, we need companies like Stargate that innovate on the material level and can radically bring down the cost of the energy transition,” Pettai noted.
As energy transition efforts continue across Europe and beyond, Stargate Hydrogen’s focus on improving efficiency and reducing production costs positions the company to contribute significantly to the future of clean industrial hydrogen use.
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