Dynelectro, the Danish PtX-startup, has successfully raised EUR 4.5 million in a seed round, marking a significant milestone for the company. The funds will be utilized to scale up and commercialize Dynelectro's groundbreaking Solid Oxide Electrolysis technology, which enables the production of green hydrogen and green fuels. The investment round saw participation from Denmark's Export and Investment Fund (EIFO) along with three other investment funds.
Christian Winther, Investment Partner at EIFO, recognizes the immense potential of Dynelectro and emphasizes the company's pivotal role in Denmark's green energy landscape. He states, "Dynelectro has cracked the code to make high-temperature electrolysis more economically viable. Their method significantly extends the lifespan of production equipment, making the production of green fuels highly competitive. As Denmark establishes itself as a global leader in green and sustainable energy, Dynelectro has the potential to contribute to this ambition. This aligns perfectly with EIFO's portfolio, which focuses on companies driving the green transition and putting Denmark on the PtX world map."
Founded in 2018 by Professor Søren Højgaard Jensen from Aalborg University, Dynelectro is headquartered in Viby Zealand and currently employs six individuals. Professor Jensen's extensive research in energy storage and PtX technology has laid the foundation for the company's advancements. As the company completes its first production plant and prepares to build a 150 KW plant for Siemens Gamesa next year, it is poised to enter the next phase of its development journey. This progress will culminate in the market introduction of commercial electrolysis units in 2025.
Søren Højgaard Jensen, CEO of Dynelectro, highlights the significance of their patented technology in overcoming the bottleneck in green hydrogen production. "Electrolysis is the limiting factor in green hydrogen production. With our patented technology, we enable large-scale production that is economically competitive. The successful completion of this investment round allows us to focus on scaling up our Dynamic Electrolysis Units to 1 MW. This is crucial for bringing a commercially viable product to the market by 2025. We are pleased to have closed this seed round with such a respected group of investors," he states.
EIFO, through its Green Future Fund, has invested EUR 2.3 million in Dynelectro. The remaining funding comes from German deep tech investment fund Vsquared Ventures, Danish investment funds North East Family Office/Footprint Firm and PreSeed Ventures, as well as Søren Højgaard Jensen himself.
Given that the current global energy supply heavily relies on fossil fuels, accounting for approximately 135,000 TWh (equivalent to 39 billion tons of CO2), the potential impact of Dynelectro's technology is substantial. Analysts and the latest forecasts indicate that green hydrogen could meet 48,000 TWh of the projected global demand of 200,000 TWh by 2050, representing 24 percent.
Christian Winther of EIFO expresses enthusiasm about the investment and its potential to contribute to the global reduction of CO2 emissions. He remarks, "Dynelectro's technology holds significant global potential in achieving the goal of reducing CO2 emissions. We are excited that this investment will further accelerate technological and commercial development."