Battolyser Systems, a Dutch startup, announced it raised €30 million in Series A funding to scale its innovative hydrogen battery technology. The company’s unique electrolyzer with battery functionality aims to tackle grid congestion and reduce green hydrogen costs. Set to launch in 2025, Battolyser’s next-generation system offers 100% flexibility, enabling efficient use of intermittent renewable energy. Battolyser is poised to play a crucial role in the Netherlands’ energy transition, targeting 4 GW of electrolyzer capacity by 2030. The technology’s ability to adapt to volatile energy prices and contribute to grid stability positions Battolyser as a potential game-changer in the green hydrogen market.
Why this is important:
Founded in 2018, Battolyser Systems has quickly emerged as a leader in the green hydrogen sector. The company’s innovative technology combines the functions of an electrolyzer and a battery, allowing it to store renewable energy and generate hydrogen from surplus electricity produced by wind and solar power. This dual functionality is what sets Battolyser apart, making it a key player in the effort to reduce the cost of green hydrogen.
Investment and future plans
The recent €30 million Series A funding round saw contributions from Global Cleantech Capital, Innovation Industries, and Invest-NL. This investment will be used to scale operations and launch the next-generation Battolyser in 2025. The technology will be available in two configurations: a 2.5 MW plug-and-play skid and a 5 MW module integrated with a Balance of Plant. These advancements aim to accelerate the commercial deployment of Battolyser’s hydrogen battery and contribute to the Netherlands’ goal of achieving 4 GW of electrolyzer capacity by 2030.
In addition to the Series A funding, Battolyser secured a €40 million financing agreement with the European Investment Bank (EIB) in October 2023. This loan is earmarked for large-scale manufacturing in Rotterdam, which is considered the hydrogen epicenter of Europe. The funds will support the expansion of Battolyser’s pilot plant in Schiedam and further scaling up in Rotterdam. The company is also in discussions with major energy companies in the Netherlands and abroad to reduce hydrogen prices and integrate renewable energy into existing networks.
Addressing market challenges
Despite its promising technology, Battolyser faces several challenges in the hydrogen market. Regulatory uncertainties and infrastructure issues in the Netherlands have made potential customers hesitant to invest. In Germany, for example, electrolyzers are exempt from network tariffs, a policy that is not yet in place in the Netherlands. Mattijs Slee, CEO of Battolyser Systems, emphasized the need for balanced policies that not only focus on CO2 reduction but also consider the economic potential of new technologies.
The company’s approach to tackling grid congestion is another significant aspect of its technology. By storing electricity when demand is low and producing hydrogen when demand is high, the Battolyser helps stabilize the grid. This capability is crucial as renewable energy sources become more prevalent and grid stability becomes a pressing concern. The technology also allows for ‘cherry-picking’ lower electricity prices, making green hydrogen more cost-effective.
Industry impact
Industry leaders have expressed strong support for Battolyser’s technology. Reda Atibi, Investment Manager at Invest-NL, noted that the company’s unique alkaline electrolyzer with battery functionality has incomparable characteristics that will contribute to the transition from grey to green hydrogen markets. Paul Kloppenborg, CEO of Global Cleantech Capital, highlighted Battolyser’s ability to unlock the full potential of renewable energy and maximize hydrogen production asset performance by rapidly adjusting to volatile and increasingly frequent negative power prices.
Nard Sintenie, General Partner at Innovation Industries, added that the patented nickel-iron Battolyser technology has fundamental advantages. It is inherently robust, 100% flexible, and has industry-leading efficiencies. As the company moves towards commercial deployment, these attributes will be critical in establishing Battolyser as a key player in the green hydrogen market.
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