GeoPura, a UK-based producer of hydrogen power units, has successfully raised £22 million to drive its expansion plans.
This new investment will support renewable fuel infrastructure and accelerate the clean energy transition.
Major Funding Boost
GeoPura, a leading UK producer of hydrogen power units based in Newcastle, has secured a significant funding boost of £22 million. This substantial investment is aimed at accelerating the company’s ambitious expansion plans, empowering it to enhance renewable fuel infrastructure and support the clean energy transition.
This recent funding round, marking the first major asset-backed debt funding for a green hydrogen company in the UK, adds momentum to GeoPura’s growth trajectory. In February 2024, the company completed a £56 million investment round, following a £36 million Series A funding round in February 2023. These successive funding rounds have brought the total capital raised by GeoPura to £114 million over the past two years.
Strategic Investment Partners
Debt funding has been secured from a consortium of banks and financial institutions, including BNP Paribas Leasing Solutions, Close Brothers Asset Finance, HSBC UK, and Siemens Financial Services. The proceeds will be utilised to recapitalise and fund the expansion of GeoPura’s fleet of Hydrogen Power Units (HPUs) and essential supporting infrastructure like tube trailers.
The structure of the debt funding includes fixed rate asset loans and hire purchase agreements. All investment partners have expressed a strong interest in increasing their funding capacity as GeoPura scales up its operations.
Derek Bulmer, CFO of GeoPura, stated, “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 £2.5 billion in capital over the next decade. 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.”
Collaborations and Support
Partnering with world-class debt funders like BNP Paribas Leasing Solutions, Close Brothers, HSBC UK, and Siemens Financial Services is vital for GeoPura. This collaboration is crucial for delivering the company’s vision of a cleaner, healthier future and advancing global environmental goals.
Rachael Guest, global relationship director at HSBC UK, remarked, “At HSBC UK, helping our customers to scale up new climate tech solutions is a key part of our net zero strategy. We are pleased to support GeoPura in advancing green hydrogen technology in the UK, which could play an important part in meeting the nation’s future energy needs.”
Innovative HPU Technology
GeoPura’s HPU technology leverages green hydrogen to generate zero-emission electricity, presenting a sustainable alternative to diesel generators. These units are essential in decarbonising customers in off-grid and grid augmentation scenarios.
The HPUs provide reliable, large-scale power and produce water as the only byproduct, which is safe enough to drink. With manufacturing hubs in Matlock and Nottingham, alongside its Northern sites, GeoPura is ramping up production in partnership with Siemens Energy to meet the growing demand.
To facilitate this growth, GeoPura increased its workforce by over 50% in 2023, marking the inclusion of its first hydrogen apprentices. The company is also investing in green hydrogen production facilities to fuel its units, with partial funding from the UK Government’s HAR1 allocation round.
Commitment to Sustainability
GeoPura’s commitment to sustainability is reflected in its active role in the UK’s transition to a green hydrogen economy. The company’s pioneering efforts in HPU technology position it at the forefront of this transition.
By focusing on the development and deployment of green hydrogen solutions, GeoPura is not only contributing to the reduction of carbon emissions but also enhancing local air quality and fostering economic growth.
The company’s initiatives are aligned with the UK’s broader environmental goals, supporting the nation’s ambitions to achieve net zero carbon emissions. GeoPura’s sustainable finance model underscores the vital role of green financing in propelling the global shift towards a more sustainable future.
Future Prospects
Looking ahead, GeoPura aims to build a global fleet of over 3,600 HPUs, a goal that requires substantial capital and strategic partnerships. The company is focused on scaling its operations and enhancing its technological capabilities to meet the increasing demand for clean energy solutions.
GeoPura’s continued success in securing significant funding demonstrates the confidence that investors have in its vision and capabilities. This support is essential for the company to maintain its position as a leader in the green hydrogen sector.
GeoPura’s recent funding success highlights its pivotal role in the clean energy sector.
With strong financial backing and strategic partnerships, the company is well-positioned to lead the UK’s transition to green hydrogen.