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HydrogenOne’s Elcogen secures investment from SmartCap

HydrogenOne Capital Growth’s (HGEN’s) portfolio company, Elcogen Plc, a leading European manufacturer of solid oxide technology that enables the delivery of efficient, affordable green hydrogen and emission-free electricity, has announced that it has secured a €5m investment from SmartCap, an Estonian state-owned venture capital fund supporting Estonian ‘greentech’ companies.

HGEN says that SmartCap’s investment will accelerate Elcogen’s growth and will be instrumental in scaling the company’s operations, production capacity and business development. It adds that the investment reflects SmartCap’s confidence in Elcogen’s strong growth potential and future prospects. As at 30 September 2024, HydrogenOne’s investment in Elcogen represented 18% (£23m) of HGEN’s NAV. Dr JJ Traynor, from HGEN’s investment adviser, commented that “This marks another milestone for one of our largest portfolio investments and a further validation of Elcogen’s strategy, enabling operations and production to scale further.”

Comments from Enn Õunpuu, CEO of Elcogen

“We are delighted to welcome SmartCap as a strategic investor. Elcogen is well-positioned to capitalize on the global shift toward clean energy and hydrogen technology, supported by over 25 years of expertise, proven solid oxide cell technology, a strategic presence in rapidly emerging hydrogen markets, and the invaluable backing of our key investors and partners. We look forward to working closely with SmartCap as we build on our momentum.”

Sille Pettai, CEO of SmartCap and Fund Manager of SmartCap Green Fund

“Elcogen is the first scale-up company in the SmartCap Green Fund portfolio, receiving capital that complements the prior strategic investments from Baker Hughes and HD Hyundai to further support the development and construction of Elcogen’s new factory in Tallinn. 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.”

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