Where the Money Goes in Electrolyzer Manufacturing: Investment Trends

Key findings

• Sunfire secured EUR 215 million in Series E equity financing in March 2024, alongside significant debt and grant funding [1][2][3][4][5].
• Nel Hydrogen received a grant of up to EUR 135 million from the EU Innovation Fund in October 2024 for its Herøya facility [9][10][11].
• Electric Hydrogen (EH2) was awarded a $46.3 million grant from the U.S. Department of Energy in March 2024 for its Devens, Massachusetts factory [18][19].

Electrolyzer Manufacturing: timeline

Date	Investor	Investment
March 2024	Sunfire	EUR 215 million equity, EUR 100 million EIB loan, EUR 200 million grants [1][2][3][4][5]
June 2024	John Cockerill Hydrogen	€230 million equity capital increase commitments [6][7][8]
October 2024	Nel Hydrogen	Up to EUR 135 million EU Innovation Fund grant [9][10][11]
May 2024	Electric Hydrogen (EH2)	$100 million credit facility [19]
July 2026	ITM Power	£46.5 million UK grant [17][16]
April 2026	Great British Energy	£40 million equity investment in ITM Power [14][15][16]
June 2025	John Cockerill Hydrogen	€116 million capital increase [20][21]
March 2024	Electric Hydrogen (EH2)	$46.3 million U.S. DOE grant [18][19]

Sources: the numbered public sources listed below.

Where the money is going

Investment in electrolyzer manufacturing is focused on scaling production and developing next-generation technologies. Companies are securing substantial equity financing rounds, such as Sunfire's EUR 215 million Series E in March 2024 [1]. John Cockerill Hydrogen also completed a €230 million equity capital increase in June 2024 [6]. These funds are directed towards strategic development and international expansion. Grants from government bodies and innovation funds are also critical, supporting industrialization efforts and new technology development. For example, Nel Hydrogen received a EUR 135 million grant from the EU Innovation Fund for its pressurized alkaline technology in Norway [9]. The market was worth $6.9 Bn in 2025 and is forecast to reach $57.4 Bn by 2035, a CAGR of 23.6%.

Who is investing, and how much

Private investors and public entities are both committing significant capital. Sunfire's funding in March 2024 included a EUR 215 million Series E, a EUR 100 million term loan from the European Investment Bank, and EUR 200 million in undrawn grant funding [1][2][3][4][5]. John Cockerill Hydrogen secured €230 million in equity commitments in June 2024 and completed a €116 million capital increase in June 2025 [6][7][8][20][21]. Great British Energy made a £40 million equity investment in ITM Power in April 2026 [14][15][16]. Electric Hydrogen (EH2) secured a $100 million credit facility in May 2024 from a syndicate including HSBC and J.P. Morgan [19]. These investments are enabling companies to expand their manufacturing capabilities and accelerate technology deployment.

Capacity coming online

Electrolyzer manufacturers are actively building out new production capacity. Nel Hydrogen took a final investment decision in December 2025 to construct up to 1 GW of production capacity at its Herøya facility in Norway [12][13]. This initial 1 GW investment is estimated at NOK 300 million [13]. ITM Power was awarded a £46.5 million grant in July 2026 to establish 1 GW of annual production capacity for its Chronos electrolyser stack technology in Sheffield [17][16]. Ohmium International secured financial assistance in August 2024 to establish 137 MW of electrolyzer manufacturing capacity in Bangalore, India [24]. HydrogenPro expects a new production line for its third-generation electrodes to be operational by Q1 2025 with a capacity of about 350 MW annually [27]. Thyssenkrupp Nucera plans to invest between €10 million and €14 million in a new Electrolyzer Cell Assembly Hub in Portugal [22][23].

Public money and policy support

Government grants and policy initiatives are playing a crucial role in de-risking and accelerating electrolyzer manufacturing. The EU Innovation Fund awarded Nel Hydrogen up to EUR 135 million in October 2024 [9][10][11] and HydrogenPro a EUR 16.5 million grant in October 2024 [25][26]. The U.S. Department of Energy provided Electric Hydrogen (EH2) with a $46.3 million grant in March 2024 and an $18.3 million transferable tax credit in April 2024, totaling $65 million in support [18][19]. The UK Department for Energy Security & Net Zero awarded ITM Power a £46.5 million grant in July 2026 [17][16]. The Portuguese government is providing approximately €3.7 million in funding for Thyssenkrupp Nucera's new hub [23]. India's SIGHT scheme is supporting Ohmium International's expansion [24]. These programs aim to foster domestic manufacturing and reduce reliance on imports.

Risks to the build-out

Despite strong investment, risks remain for the electrolyzer manufacturing build-out. The rapid scaling of capacity requires robust supply chains and a skilled workforce, which may face constraints. The successful industrialization of next-generation technologies, such as Nel Hydrogen's pressurized alkaline technology [9] or ITM Power's Chronos electrolyser stack [17], depends on efficient R&D and manufacturing processes. The availability and cost of renewable energy for green hydrogen production are also critical factors influencing demand for electrolyzers. While public funding is significant, as seen with grants to Sunfire [4][5] and Electric Hydrogen [18][19], sustained policy support is necessary to maintain momentum. Delays in project execution or cost overruns, such as Nel Hydrogen's NOK 300 million investment for 1 GW [13], could impact profitability and investor confidence.

What it means for buyers, suppliers and investors

For buyers, the increasing manufacturing capacity and technological advancements suggest a future of more readily available and potentially lower-cost electrolyzers. The focus on industrialization by companies like Nel Hydrogen [9] and ITM Power [17] indicates a move towards standardized and scalable solutions. Suppliers to the electrolyzer industry can expect growing demand for components and materials as production ramps up. Investors are seeing significant opportunities, with substantial equity raises and government backing validating the market's potential. The diverse funding sources, including venture capital, debt, and grants, reflect confidence in the sector's long-term growth. The market is forecast to reach $57.4 Bn by 2035, growing from $6.9 Bn in 2025, a CAGR of 23.6%.

About the data

Facts in this investment analysis come from the dated public sources listed below - company announcements and filings, regulators and business and trade news - cited by number in the text. Market size figures are Market-Reports.com estimates (US dollars, base year 2025, forecast to 2035). Statements about what developments mean are our assessment, not reported fact.

Sources

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Source: Market-Reports.com, "Where the Money Goes in Electrolyzer Manufacturing: Investment Trends" - https://www.market-reports.com/insights/electrolyzer-manufacturing-investment-and-capacity-analysis

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Key takeaways

• Electrolyzer manufacturers are securing substantial private and public funding to scale production and develop new technologies.
• Significant capacity expansions are underway, with companies like Nel Hydrogen and ITM Power targeting gigawatt-scale production.
• Government grants and policy support are critical enablers for industrialization and technological advancement in the sector.