Metzler Corporate Finance acted as exclusive financial advisor to CIP in series D financing round of Sunfire
Sunfire increases its Series D capital raising to €195 million ($215 million), partnering with Copenhagen Infrastructure Partners (CIP) and Blue Earth Capital (BlueEarth). The electrolysis company benefits from the unique partnership by entering into a framework agreement with CIP for its alkaline electrolyzers alongside growth and climate impact expertise from BlueEarth.
With the EU set to significantly increase its targets for renewable hydrogen to reduce fossil fuel dependency, key players in the energy market are rising to the challenge. Sunfire is rapidly expanding its manufacturing capacity and has raised further funds to enable the scaling of its hydrogen technologies. Following an initial €109 million ($125 million) capital raise in October 2021, Sunfire has secured two additional partners in a second closing to the Series D, to reach a total raise of €195 million ($215 million).
CIP enters into framework agreement for up to 640 MW of electrolysis
CIP invests into Sunfire through its Copenhagen Infrastructure Energy Transition Fund I. The company is the world’s largest fund manager within greenfield renewable energy infrastructure investments and active in areas such as offshore wind power, energy storage and Power-to-X.
To scale its Power-to-X projects, CIP requires reliable, industrial electrolysis systems which are currently in limited supply. By partnering with Sunfire, CIP secures substantial electrolysis capacity. It enters into a framework agreement to purchase pressurized alkaline electrolyzers with a total capacity of up to 640 MW, to supply a portion of CIP’s multi-GW Power-to-X project pipeline.
“This agreement adds huge value for all parties involved”, says Sunfire CEO Nils Aldag. “While CIP can rely on the most advanced electrolysis technology and our highly dedicated expert team, we showcase our ability to deliver commercially scalable projects.”
Global impact investment firm BlueEarth provides capital and expertise
BlueEarth partners with Sunfire as a new investor. The global impact investment firm, incubated by and built up with the support of Partners Group, will invest via their dedicated climate growth strategy. Alongside growth capital, BlueEarth contributes a wealth of entrepreneurial experience, institutionalization guidance and in-house climate impact expertise to bolster Sunfire’s next stage of growth.
Carbon Direct Capital Management increases its commitment
Existing investors are also increasing their investment in Sunfire. Carbon Direct Capital Management, already supporting the German-based electrolysis company since October 2021, acquires additional shares.
For Nils Aldag, Series D is a major milestone: “Current political developments make us realize how quickly the green hydrogen market needs to grow. As a leading global electrolysis company, we want to make a significant contribution to European energy independence and help to fight climate change. With the funds raised, we can consistently and rapidly drive our growth in Europe.”
Comments from the investors
Felix Pahl, Partner at Copenhagen Infrastructure Partners: “One key factor to drive down the cost of green hydrogen is the industrialization of the manufacturing of electrolyzers and CIP plans to participate in this through partnerships and framework agreements. Sunfire is a leader in electrolysis technology, which will be the key component in the decarbonization of hard-to-abate sectors and a contributor to European energy independence. With a strong team and backing from a strong investor base, we expect that Sunfire can be a driver of the industrialization of the green hydrogen sector and thereby contribute significantly to net zero emissions and energy security targets.”
Kayode Akinola, Global Head of Private Equity Direct Investments at Blue Earth Capital: “We believe Sunfire is well positioned at the nexus of energy security and the net zero transition. Green hydrogen has the potential to transform some of the world’s most emissions-intensive industries, many of which have no alternative pathways to fully decarbonize. With its leading track record in two of the preeminent electrolyzer technologies, Sunfire is poised to play a key role in fulfilling this promise. We are excited to be partnering with the Sunfire team and shareholders by providing growth capital and support to help scale operations within existing and new markets.”
Jonathan Goldberg, CEO of Carbon Direct: “We believe that scaling green hydrogen is a climate imperative. Involvement from customers like CIP speak to the technical and commercial readiness of Sunfire’s green hydrogen solutions.”
Goldman Sachs Bank Europe SE served as exclusive financial adviser and placement agent to Sunfire.
Metzler Corporate Finance acted as exclusive financial advisor to CIP Copenhagen Infrastructure P/S. Members of the deal team of Metzler were as follows: Jens Hausmann, Managing Director; Wali Mahmood, Vice President; Roman Dück, Senior Associate; Tim Wilkowski, Associate.
(source: Sunfire GmbH, Metzler Corporate Finance)