Sunfire has secured €200m ($206.5m) in guaranteed financing to drive the scale-up of its alkaline electrolysis technology and accelerate growth in the hydrogen market.
Based in Dresden, the German firm has been backed by a consortium led by Commerzbank and other leading German and European commercial banks. H2 View understands that the financing has a five-year term.
Around 80% of the financing has been secured by parallel default guarantees from the German Federal Government and the Free State of Saxony, with the remaining 20% provided by the banks themselves.
The instrument reportedly eliminates the need for Sunfire to provide cash collateral, meaning they can secure industrial projects and customer orders financially more efficiently.
Furthermore, the electrolyser manufacturer can more effectively use advance payments received for the production of electrolysers without using its own funds as collateral.
“With the guarantee line, we can not only realise existing projects but also drive industrial scaling with our own financial resources,” explained Frank Posnanski, Sunfire’s Chief Financial Officer.
Stefan Wenzel, Parliamentary State Secretary to the German Federal Minister of Economic Affairs and Climate Action, claimed the parallel federal-sate guarantee demonstrates the government’s commitment to domestic electrolyser production.
“Access to sustainable financing is a key element for resilient value chains in transformative technologies,” Wenzel added. “In doing so, we are strengthening our strategic, energy policy, and technological sovereignty, in alignment with the European goals of the Net Zero Industry Act.”
Just last March, Sunfire raised over €500m ($542m) through capital grants, making it one of the “best capitalised electrolyser manufacturers in the industry.”
Read more:Sunfire raises over €500m making it one of the ‘best capitalised electrolyser manufacturers’
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