Indian clean energy investor Transition VC led the $5 million pre-Series A financing of Hydgen, a green hydrogen producer that was spun out of the National University of Singapore. Cloudberry Pioneer Investments, Singaporean early-stage deeptech investor Moringa Ventures and family offices from India and Singapore joined the round.
The financing follows Hydgen’s $1.5 million seed round in February led by Cloudberry with participation from the National University of Singapore, Thai VC TK & Partners and angel investors.
The fresh funding will support the automation of Hydgen’s production plant in India and its expansion into Japan, Europe and the Middle East.
Hydrogen demand
Global hydrogen demand increased by 2% in 2024 to reach 100 million tons. Hydrogen is an industrial staple, used from fertilizer production to chemicals. It also can be used for renewable energy storage and transportation of fuel. Production of green hydrogen grew 10% in 2024, although it accounts for less than 1% of global production.
Hydgen’s low-cost electrolyzer generates green hydrogen on site for food processing, mobility, pharmaceuticals and fertilizer production, reducing transport and sourcing costs.
“Hydgen’s approach to decentralized hydrogen production can reshape the global supply chain by making hydrogen generation efficient, resilient and accessible at the point of use,” said Moringa Ventures’ Khoong Hock Yun.
Hydrogen funders
Transition VC’s first fund launched in 2022 with a target of four billion Indian rupees ($49 million), reportedly reaching a first close in mid-2023. The fund invests in energy storage, green buildings, industrial decarbonization and clean mobility, so far investing 550 million Indian rupees ($6.2 million). The firm plans to launch a second $150 million fund next year.
The Netherlands-based blended finance manager Climate Fund Managers raised €150 million ($174 million) this year from European donors for a global energy transition and green hydrogen infrastructure fund focused on South Africa and Namibia.
In Japan, Toyota Motor Corporation, Sumitomo Mitsui Banking Corporation, the Japan Green Investment Corp. for Carbon Neutrality and others teamed up in the Japan Hydrogen Fund, which inked $400 million in commitments in its first close last year.
British investor Octopus Renewables Infrastructure Trust just exited UK’s green hydrogen producer HYRO Energy, selling its 25% stake for £4.6 million ($5.6 million).
