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UK-based hydrogen technology pioneer GeoPura has announced the successful closing of a £22 million debt funding round. The funding will be used to scale its fleet of green hydrogen power units (HPUs) and expand their deployment globally.
This milestone marks a UK green hydrogen company's first major asset-backed debt funding deal, building on the £56 million equity investment that GeoPura secured earlier this year. The company has raised £114 million over the past two years, with backing from prominent investors such as Siemens Energy, General Motors Ventures, Barclays Sustainable Impact Capital, Swen Capital Partners, and the UK Infrastructure Bank.
The new debt financing was secured from a consortium of bank and non-bank financial institutions, including BNP Paribas Leasing Solutions, Close Brothers Asset Finance, HSBC UK, and Siemens Financial Services.
GeoPura plans to use the funds to recapitalise and expand its growing fleet of hydrogen power units and invest in critical supporting infrastructure to accelerate the global rollout of its clean energy technology.
"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 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 for 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 continues to be a hot topic of debate. Proponents argue that it holds significant potential to replace polluting diesel generators across various industries and applications.
GeoPura, one of the leading players in this rapidly growing market, has established operational hubs in Sheffield, Matlock, Nottingham, and Newcastle upon Tyne. These locations enable the mass production of hydrogen power units (HPUs) through a collaboration with Siemens Energy.
The company has expanded its workforce by over 50% in 2023, including hiring its first hydrogen apprentices, and is investing in green hydrogen production to fuel its HPUs. GeoPura is developing the HyMarnham Power facility in the East Midlands, one of 11 projects funded under the UK government's HAR1 allocation round.
GeoPura has also attracted an impressive roster of high-profile clients, including the DP World Golf Tour, the BBC, Balfour Beatty, and National Grid, all of whom have adopted its hydrogen power units to significantly reduce their carbon emissions.
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