Scaling Up Green Hydrogen: Stargate Hydrogen’s EUR 11M Boost for Sustainable Energy Innovation

• Tallin-based Stargate Hydrogen gets backed with EUR 11M Series A funding from SmartCap, GIGA Venture, and UG Investments for scaling operations
• The company develops advanced electrolyzer technology–High-efficiency alkaline electrolysers with proprietary materials and modular design
• Founders can boast about deep expertise in strong leadership, finance, materials science, and renewable energy
• The new funding will fuel Stargate Hydrogen’s ambition that revolves around collaborating with industry leaders and institutions for commercialization

This March, Estonian startup Stargate Hydrogen secured EUR 11M in Series A funding from SmartCap, GIGA Venture, and UG Investments. Specializing in advanced electrolyzer stacks, the company focuses on increasing efficiency to lower green hydrogen costs, providing more reliable production solutions than existing alternatives.

Introducing the decorated Founders

Stargate Hydrogen’s co-founder and CEO Marko Virkebau holds an impressive academic history with an MS cum laude at TalTech. His career path includes the position of a CFO at MM Grupp, one of the region’s largest family offices, underscoring his adeptness when it comes to capital and finance, and a seat at the board of directors of the renowned Estonian tech company  Skeleton Technologies, contributing to its advancement.

As a serial entrepreneur, Mr Virkebau played a crucial role in reshaping professional networking dynamics when serving as the co-founder and CFO at Meetfrank. Currently holding the CEO position at Stargate Hydrogen, he is leveraging his accumulated experience to drive forth sustainable energy solutions.

Mr Virkenbau is a member of the Estonian Founders Society—the collective that actively shapes the Estonia entrepreneurial landscape, with a commitment to excellence and innovation for which the country is famous.

Stargate Hydrogen’s co-founder and CTO Rainer Küngas, is a fairly well-known Estonian materials scientist whose work has significantly advanced the fields of high-temperature electrolysis, solid oxide fuel cells, and energy storage technologies. He has also researched developing materials for lithium-ion batteries and structured solar panels, contributing to the push for more sustainable energy solutions.

A graduate of Tallinn School of Science, Dr Küngas was awarded his Ph.D. at the University of Pennsylvania in 2012. His doctoral research explored the factors influencing the performance and stability of solid oxide fuel cell cathodes. Over the years, his contributions got recognized with several prestigious awards, including the International Fulbright Science & Technology Award and the Electrochemical Society‘s Student Award for Industrial Electrochemistry and Electrochemical Engineering.

In addition to his research, Dr Küngas can boast about a notable portfolio of patents and an active voice in the scientific community. As one of the founding members of the Estonian Young Academy of Sciences, he has helped foster collaboration and support for aspiring researchers. His work continues to bridge the gap between academic discovery and practical application, reinforcing his reputation as a thought leader in materials science and renewable energy.

What Stargate Hydrogen Is and How It Came to Be

In 2021, the two founded Stargate Hydrogen, inspired by their favorite 90s sci-fi show and the fact that electrification was insufficient for decarbonising heavy industries. It became apparent to them that their new company’s mission was to make green hydrogen affordable for hard-to-decarbonise industries, including steel, fertilisers, and chemicals.

The startup is developing advanced alkaline electrolyser stacks and containerized systems for green hydrogen production. Stargate Hydrogen’s Stellar Series stacks offer high efficiency and reliability, operating at 32 bar pressure with a 6-month lead time. The Gateway Series provides modular, turn-key electrolysers ranging from 1 to 10 MW, designed for dynamic operation with renewable energy sources.

‘The journey so far has been full of amazing achievements that we are proud to share. In only six months after founding Stargate Hydrogen, we had already designed our first stack model, since then the company has grown to more than 65 employees, recruited from Nel, Mitsubishi Heavy Industries, Gencell, ABB, McPhy, Topsoe, among others. Additionally, we have also struck partnerships with Fortum, Rockfin, Milani, the Fraunhofer Institute, Agfa-Gevaert, among others,’ Mr Virkebau shares.

‘Stardust, our ceramic-based catalyst, is under development and therefore we cannot disclose much information. What we can say is that Stardust will be implemented into our products once we reach a level of reliability that passes the highest standard tests, these include efficiency, degradation, scalability, and others. Our research team has made substantial progress already and the results are soon to be implemented,’ Dr Küngas adds.

Stargate Hydrogen’s facilities are located in Tallinn. The company recently moved to a new facility where its offices, laboratory, and production will all be in the same complex, signifying a decisive expansion in its operations.

As of now, the team is working on the second-generation product line–the one which will include the ceramic catalyst–while executing multiple MW-scale projects with its first-generation product in the Baltics, Nordics, South and East Europe, Turkey, and India.

The number of employees, partners and clients are not the only things growing. Manufacturing capacity in the company’s facility is scaling to a 140MW megafactory with plans for a proper gigafactory in the future,—all to meet the clear projected market demand.

Impressed Investors

SmartCap, Estonia’s state-owned venture capital fund manager, drives innovation through strategic investments. Its Green Fund supports high-growth Estonian greentech companies in energy, agriculture, transport, and more. By improving access to equity funding, it advances sustainability and aligns with Estonia’s long-term economic and environmental goals.

‘We decided to invest in Stargate Hydrogen primarily because of their highly innovative approach to green hydrogen production. Unlike many other electrolyzer OEMs, their electrode innovation is based on fundamental material science. Additionally, they have an impressive customer base, strong unit economics, and an exceptional team with a proven track record,’ SmartCap’s CEO and fund manager Sille Pettai tells ITKeyMedia.

The SmartCap team is convinced by Stargate Hydrogen’s sharp commercial focus, successful track record in stack and system deliveries, and a strong IP portfolio covering key innovations at the material, electrode, stack, and system levels. Adding to that is the IPCEI (Important Project of Common European Interest) status by the European Commission, further validating their strategic importance.

‘From our Green Fund’s perspective, funding the scale-up of manufacturing for innovative green technologies is central to the green transition and aligns with our strategic objectives, as it enables the wider adoption of sustainable energy solutions,’ Mr Pettai concludes.

‘We’ve been very successful in our applications towards European funds, these include not only IPCEI, but also local grants in different countries under the Horizon project. That is an important part of our funding and allows us to expand our R&D and production capabilities while delivering real projects,’ Mr Virkebau comments.

Since Stargate Hydrogen’s founding, it was evident to the founders that collaborating with other institutions would be essential for the company’s success. From research institutes to universities, engineering companies and investors, every partnership is ultimately meaningful and in line with an ambitious mission of enabling the industry of tomorrow with green hydrogen.

Stargate Hydrogen’s Perspectives and Green Hydrogen’s Future

‘New findings allow us to kick-off new projects, for example, the study of shunt currents in water electrolysis systems, made in partnership with ABB, LUT, and Aalto University. Another case that we are proud of sharing started in 2022, when we established a bilateral collaboration with Fraunhofer IFAM in Dresden. The institute is conducting independent electrochemical characterisation studies of Stargate’s electrode technology. Fraunhofer IFAM also plays a key role in two Clean Hydrogen Partnership projects, both coordinated by Stargate: EXSOTHyC and ENDURE,’ Mr Virkebau shares more details.

With the new funding, Stargate Hydrogen sets out to scale manufacturing, enhance internal testing, and forge strategic partnerships in the global green hydrogen ecosystem. True to the mission of lowering green hydrogen costs by improving alkaline electrolyser efficiency, the company’s next steps focus on expanding R&D to drive further innovation and growth.

Stargate Hydrogen’s mission is vital in nearing a sustainable energy future. Lowering green hydrogen costs enables decarbonization in hard-to-abate industries and reduces overall reliance on fossil fuels. The startup’s innovative approach, strategic partnerships, and scalable technology position them as a key player in the global green hydrogen revolution.