Credit: GeoPura
Debt funding round set to enable hydrogen generator fleet expansion and global deployment
UK-based hydrogen technology specialist GeoPura has today announced it has secured £22m of funding to support the roll out of its green hydrogen power units (HPUs).
The company said the deal marked the first major asset-backed debt funding announcement from a green hydrogen company in the UK, building on the £56m investment round it completed in February this year. GeoPura has now raised £114m in capital over the past two years, including support from the likes of Siemens Energy, General Motors Ventures, Barclays Sustainable Impact Capital, Swen Capital Partners, and the UK Infrastructure Bank.
The new debt funding has been secured from a panel of bank and non-bank financial institutions, including BNP Paribas Leasing Solutions, Close Brothers Asset Finance, HSBC UK and Siemens Financial Services.
The company said the proceeds would now be used to recapitalise and fund GeoPura's growing fleet of HPUs and key supporting infrastructure.
"Securing this debt funding is a pivotal milestone in our journey to build a global fleet of over 3,600 HPUs, which will require over £2.5bn in capital over the next decade," said Derek Bulmer, CFO at GeoPura. "This funding will not only accelerate our expansion but also drive significant reductions in carbon emissions and improve local air quality while contributing directly to the UK's net zero targets... This milestone supports our commitment to a cleaner, healthier future and underpins the vital role of sustainable finance in advancing global environmental goals."
Julian Hobbs, CEO at Siemens Financial Services UK, said the deal was further evidence of "real progress in the UK hydrogen value chain, from ever growing production capacity to downstream processing".
"The launch of the government's first hydrogen allocation round (HAR1) and the announcement of 11 successful projects puts the UK at the forefront of commercial scale green hydrogen production projects in Europe," he added. "Siemens has leading technological expertise in the hydrogen sector and combining this with our financing capabilities allows us to provide meaningful support to GeoPura's development. Working with GeoPura is also in line with our commitment to support the transition to net zero."
The role of hydrogen in the net zero transition remains the subject of intense debate, but supporters of the technology maintain it can play a key role in replacing polluting diesel generators for a wide range of applications.
GeoPura is one of a number of companies to tap into this fast-expanding market and now operates hubs in Sheffield, Matlock, Nottingham, and Newcastle upon Tyne in the UK, which allow it to mass manufacturing HPUs in collaboration with Siemens Energy.
The company said it has increased its headcount by over 50 per cent in 2023, including its first hydrogen apprentices, and is now also investing in green hydrogen production facilities to fuel its units, including the HyMarnham Power facility in the East Midlands, which is one of the 11 projects to be allocated funding as part of the UK government's HAR1 allocation round.
The company said it has also secured a number of high profile clients, including the DP World Golf tour, The BBC, Balfour Beatty, and National Grid, which have all used HPUs to reduce their carbon footprint.
You can now sign up to attend the fifth annual Net Zero Festival, which will be hosted by BusinessGreen on October 22-23 at the Business Design Centre in London.
