PowerUP Targets Global Scaling with EUR 10M Investment in Its Modular Hydrogen Tech

• Tallinn-based PowerUP Energy Technologies secured EUR 10M Series A to scale its modular hydrogen fuel cell generators
• The technology evolved from space-grade research to defence, industrial, and off-grid deployment
• Military application in Ukraine validated silent, emission-free systems and accelerated dual-use market demand
• The new funding aims to expand the company’s sales networks and strengthen global defence sector presence

This November, the Estonian green hydrogen scaleup PowerUP Energy Technologies closed its Series A round of investment. The round amounted to EUR 10M and co-led by Mercaton and ScaleWolf, joined by SmartCap Green Fund (also invested in Stargate Hydrogen, among others).

From Academic Catalyst Research to Modular Hydrogen Solutions for Dual-Use Applications

Established in 2016, PowerUP Energy Technologies designs and builds modular hydrogen fuel cell generators engineered for adaptable deployment across defence, industrial, and remote-area use. Their systems provide noiseless and emission-free power, perfectly suitable for sensitive military missions. They also enhance the resilience of civilian infrastructure, including telecom towers, emergency shelters, and other critical facilities that rely on dependable off-grid or backup electricity during challenging conditions.

Ivar Kruusenberg, PowerUP Energy Technologies’ founder and CEO, is a chemist who spent years researching catalyst materials at the University of Tartu and UC Berkeley. He tells ITKeyMedia that it was a conversation with a former Apple VP that convinced him that his excellent science was stuck in the lab and needed to be turned into a product. Hence, the researcher-turned-entrepreneur founded PowerUP Energy Technologies to bridge the gap between academic research and the real-world need for clean power.

Space-Grade Expectations and Validation Through Crisis and Conflict

‘One could almost say that we didn’t start as a generator company; we started as a deep tech research firm. Our technology was initially engineered for ESA future missions to Mars and the dark side of the Moon, which immediately set an extremely high bar for reliability,’ Mr Kruusenberg recalls.

Afterward, the startup originally entered the market that was looking for silent, clean backup power for sailors. PowerUP Energy Technologies’ first commercial products targeted the yachting and recreational sector.

The real milestone was the geopolitical shift in 2022. The war in Ukraine created a tragic and massive demand for off-grid, silent power for defense. Thus, PowerUP Energy Technologies’ generators got validated in the harshest conditions possible.

ScaleWolf’s partner Dave Harden states that his firm values technologies that distinctly strengthen security and resilience where it matters most.

‘PowerUP has shown that its systems can deliver dependable power in demanding environments, supporting both defence missions and essential civilian operations. We are proud to back a team that turns proven performance into meaningful dual-use capability,’ his colleague Edvinas Kerza adds.

Scaling Product Lines and Addressing the Supply Chain Bottleneck

‘Our product line is constantly evolving. Having started with small portables UP400, we are now rolling out larger units like the UP3K and developing 15kW units. Our roadmap isn’t just about making generators; it’s about integrating into microgrids where solar, batteries, and hydrogen work together to ensure 100% uptime,’ Mr Kruusenberg shares.

One of PowerUP’s standout points is the steady supply of clean hydrogen long-term — crucial for scaling in both defence and commercial sectors. The team solved the infrastructure bottleneck by decoupling the fuel from the machine. By moving the hydrogen supply outside the generator, PowerUP allows clients to use standard cylinders from any gas supplier. This way, clients don’t need to wait for hydrogen pipelines, instead making use of standard logistics from industrial gas suppliers that’s already in place.

‘Beyond zero emissions at the tailpipe, our efficiency comes from our proprietary technology. This allows us to get more power out of less material, keeping the units lightweight and durable. We are replacing diesel generators that are heavy, polluting, and require constant oil changes. Our goal is to reach a truly circular economy where all the materials in our stacks are recovered and reused,’ Mr Kruusenberg notes.

Scaling Toward Global Industry Leadership

With this November’s EUR 10M Series A round, PowerUP Energy Technologies is hitting scaling milestones, moving from a startup to a global industrial player. As such, this funding is largely dedicated to strengthening the company’s sales structure. Like any startup at this stage, the objective is to move away from ‘founder-led sales’ to a structured, data-driven commercial organization. This involves expanding the network of wholesalers and resellers, particularly in the Security and Defense sectors, so the company can scale faster.

‘Right now, the Defense and Security sectors are our strongest drivers. They value the silence and lack of heat signature – tactical advantage of our generators,’ the CEO comments.

Over the next 3-5 years, Mr Kruusenberg’s team expects this sector to remain the key growth-driver. But additionally, this is a ‘battle-testing’ that presents the ultimate certification for the commercial sector.

‘PowerUP is a great example of a broadly applicable green technology company that can capture the changing market opportunities of green transition and quickly address new market needs in defence. PowerUP develops and manufactures hydrogen fuel cell generators as main power, backup power, or battery extender solutions for reliable and sustainable energy. This has also turned to be a critical technology for modern defence and security applications, like enabling advanced communication networks and surveillance systems with low noise, vibration, and heat signature, where the choice of tech is driven first and foremost by reliability and performance rather than climate objectives,’ SmartCap’s managing director Sille Pettai concludes.

Advancing hydrogen power from promising theory to practical deployment, PowerUP Energy Technologies is proving how clean, silent, and resilient energy isn’t just an environmental ideal but a strategic necessity. The dual-use approach shows how green technology can simultaneously strengthen defence and security capabilities and modernize critical civilian infrastructure. As the company scales globally, its example helps determine how swiftly hydrogen can move from niche applications to a central role in the future energy landscape.