Mangalore-based deep-tech startup Hydgen has secured $5 million in a pre-Series A funding round to accelerate the deployment of its proprietary Anion Exchange Membrane (AEM) electrolyzer technology, enabling industries to produce green hydrogen on-site using renewable energy. The equity-debt mix round was led by Transition Venture Capital, with participation from Cloudberry Pioneer Investments (Europe), Moringa Ventures (Singapore), and strategic family offices from India and Singapore.
Founded by Manipaddy Krishna Kumar (Co-Founder & COO) and a team of clean energy experts, Hydgen aims to disrupt the $100 billion+ global green hydrogen market by offering decentralized, cost-effective solutions to sectors like chemicals, refining, and mobility—directly supporting India’s National Green Hydrogen Mission and Atmanirbhar Bharat goals.
Hydgen’s Technology: AEM Electrolyzer Innovation
How It Works
- Process: Uses renewable electricity to split water into hydrogen and oxygen via AEM electrolysis.
- Advantages:
- Decentralized Production: On-site hydrogen generation eliminates supply chain dependencies.
- Cost Efficiency: Lower operational expenses compared to traditional alkaline or PEM electrolyzers.
- Scalability: Modular systems adaptable to industrial needs.
Target Industries
- Chemicals & Fertilizers: Green ammonia and methanol production.
- Refining: Hydrogen for desulfurization and cleaner fuel processing.
- Mobility: Fueling infrastructure for hydrogen-powered vehicles.
- Steel & Manufacturing: Low-carbon industrial heat and processes.
Funding Breakdown and Utilization
Lead Investors
- Transition Venture Capital: Focused on climate-tech and energy transition.
- Cloudberry Pioneer Investments: European investor backing sustainable innovations.
- Moringa Ventures: Singapore-based fund supporting green tech in emerging markets.
Use of Funds
- R&D Advancement: Enhancing AEM efficiency and durability.
- Product Certification: Meeting international standards for industrial deployment.
- Automated Assembly Lines: Scaling manufacturing for quality and output.
- Market Expansion: Accelerating growth in India, Southeast Asia, and the Middle East.
Market Opportunity and Growth Drivers
Global Green Hydrogen Demand
- Market Size: Projected to exceed $100 billion by 2030.
- Policy Support: Initiatives like India’s National Green Hydrogen Mission (₹19,744 crore).
- Corporate Shift: Industries committing to net-zero targets driving adoption.
Competitive Landscape
- Incumbents: Traditional electrolyzer manufacturers (e.g., Nel, ITM Power).
- Local Players: Startups like Hygenco and Ohmium.
- Hydgen’s Edge: Proprietary AEM technology tailored for cost-sensitive markets.
Founder’s Vision
Manipaddy Krishna Kumar, Co-Founder & COO
“Our AEM technology enables companies to produce trusted, on-demand hydrogen today, bInvestor Insightsridging to a full green transition. We’re empowering industries to decarbonize without compromising reliability or cost.”
Progress and Traction
Current Deployments
- Geographic Reach: Systems operational across India and Southeast Asia.
- Pipeline: Expansion underway in the Middle East and European markets.
- Client Base: Partnerships with chemical, refining, and energy companies.
Impact Metrics
- Emission Reduction: Up to 90% lower CO₂ compared to gray hydrogen.
- Cost Savings: 30–40% lower than imported or centrally produced hydrogen.
Alignment with National and Global Goals
India’s National Green Hydrogen Mission
- Funding: ₹19,744 crore to build a green hydrogen ecosystem.
- Targets: 5 million metric tons of annual production by 2030.
Atmanirbhar Bharat
- Domestic Manufacturing: Reducing reliance on imported electrolyzers.
- Job Creation: Roles in R&D, manufacturing, and deployment.
Future Roadmap
Short-Term (2025–2026)
- Product Certification: Achieve international standards (e.g., IEC, UL).
- Pilot Projects: Expand deployments in steel, mobility, and refining.
- Team Growth: Hire across engineering, sales, and operations.
Long-Term (2027–2030)
- Gigawatt-Scale Manufacturing: Establish automated gigafactories.
- Global Partnerships: Collaborate with energy majors and utilities.
- Technology Licensing: Offer AEM solutions to international markets.
Challenges and Strategic Responses
Key Hurdles
- Technology Scaling: Maintaining efficiency at larger capacities.
- Market Education: Demonstrating reliability to industrial customers.
- Policy Implementation: Navigating evolving regulatory frameworks.
Mitigation Strategies
- R&D Partnerships: Collaborate with academic institutions like IITs and NISE.
- Customer Incentives: Offer leasing models to reduce upfront costs.
- Advocacy: Engage with policymakers to streamline approvals.
Conclusion: Pioneering a Green Hydrogen Future
Hydgen’s $5 million pre-Series A funding marks a significant step toward making green hydrogen accessible and affordable for industrial decarbonization. By leveraging innovative AEM electrolyzer technology, the startup is positioned to drive India’s energy transition while capturing opportunities in global markets.