Estonian CleanTech company Elcogen is tackling one of green hydrogen’s biggest challenges: making it affordable enough for widespread adoption. Now it has more firepower to move forward, as Elcogen has raised €5M from SmartCap, Estonia’s state-owned venture capital fund.
The investment comes as part of SmartCap’s new green technology initiative aimed at accelerating sustainable innovation, and will boost the construction of Elcogen’s new, 14,000 m² facility in Loovälja Industrial Park.
Elcogen plans to use the funding to scale up its dual-technology platform that combines solid oxide fuel cells (SOFC) and solid oxide electrolyser cells (SOEC). This technology addresses one of the most persistent challenges in the hydrogen economy: the high cost of production. It’s also particularly notable for its versatility – while the SOEC system produces hydrogen from renewable energy, the SOFC technology can efficiently convert it back into electrical power.
“The new plant will significantly increase the manufacturing capacity of solid oxide fuel cells and solid oxide electrolyser cells — technologies we see as key drivers of the green transition in industrial processes and enablers of energy security. The expansion reflects the growing need for highly efficient hydrogen technologies, such as Elcogen’s technology,” said Sille Pettai, CEO of SmartCap and Fund Manager of SmartCap Green Fund, funded by the European Union’s NextGenerationEU.
“We are delighted to welcome SmartCap as a strategic investor,” said Enn Õunpuu, CEO of Elcogen. In spring 2024, Baker Hughes, a U.S. energy technology firm, invested in Elcogen, following previous investments from Hydrogen One Capital Growth, HD Hyundai, Mirae, and the European Commission. Since its founding in 2001, Elcogen has raised over €140M total in grants and commercial investments.
Estonia is home to a vibrant hydrogen ecosystem. A national hydrogen valley initiative coordinates research and development, uniting companies like PowerUP Energy Technologies (portable hydrogen fuel cell generators), Skeleton Technologies (ultracapacitors for hydrogen applications), Stargate Hydrogen (green hydrogen production systems), Port of Tallinn, TalTech, and the University of Tartu.
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