Climate tech

Q2 202416.05.2024

Hydrogen & Nuclear Energy

Picture of Shubham Jaipuria

Shubham Jaipuria

at Sifted

Over the past few years, investors have lined up to support European hydrogen startups. The sector was one of a few that saw a funding bump in 2023, pulling in $2.2bn — a 47% increase from the previous year. Almost five months into 2024, hydrogen startups have seen further success, securing $1.3bn in funding.

Hydrogen can be made and burned without releasing greenhouse gases. But the cost of green hydrogen electrolysers has skyrocketed thanks to inflation. Enter “white” hydrogen - a variation naturally occurring underground. Though still in an exploratory phase, investors are showing considerable enthusiasm for this development. Natural, or white, hydrogen could cost as little as €0.5 per kilogramme (kg), compared to green hydrogen costs ranging from €5-6 per kg.

Switching focus to nuclear, the nuclear startup sector has yet to take off in Europe. Funding for startups from the continent rose from $140m in 2021 to $541m in 2022 (propped up by €100m and €300m raises from Newcleo) before falling to $178m in 2023 — a 67% drop.

Commercialisation for nuclear startups is still several years away, and given that VCs require swift returns on their investments, nuclear does not present a compelling case for many. Startups building in this sector might have to look for alternative funding avenues, such as CVCs and angels. And while some are concerned about European talent moving across the pond, in truth, we haven’t seen a big exodus of companies to America, yet.

20 startups to watch

Sifted score
8.35
-
Greenlyte Carbon Technologies
Carbon capture and utilization technology.
Strong investor(s)
Serial founder(s)
Hiring
- Year founded
  2022
- HQ
  Essen, Germany
- Latest round
  Seed
  €10.5m / Mar 2024
- Total funding
  €18.2m
View company profile
Sifted score
7.61
-
Stargate Hydrogen Solutions OÜ
Serial founder(s)
Hiring
- Year founded
  2021
- HQ
  Tallinn, Estonia
- Latest round
  Seed
  €42m / May 2024
- Total funding
  €54m
View company profile
Sifted score
7.57
-
PowerUp Energy Technologies
Strong investor(s)
Serial founder(s)
Hiring
- Year founded
  2016
- HQ
  Tallinn, Estonia
- Latest round
  Seed
  €1.5m / Apr 2020
- Total funding
  €4.5m
View company profile
Sifted score
7.38
-
Reverion
Strong investor(s)
- Year founded
  2020
- HQ
  Eresing, Germany
- Latest round
  Seed
  €8.5m / Apr 2023
- Total funding
  €18m
View company profile
Sifted score
7.29
-
Proxima Fusion
Strong investor(s)
Hiring
- Year founded
  2023
- HQ
  Munich, Germany
- Latest round
  Seed
  €20m / Apr 2024
- Total funding
  €27m
View company profile

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