Teragen Energy, a developer of modular solid-oxide fuel cell power systems for data centers, industrial sites, and utilities, has raised $6 million in an oversubscribed pre-seed funding round.

BEVC and Energy Capital Ventures co-led the round. AP Ventures, AIC Ventures, the Massachusetts Clean Energy Center, and UntroD Capital Asia also participated.

Teragen is developing onsite power generation systems that use solid oxide fuel cell technology. Ruofan Wang, the CEO of Teragen Energy, co-invented this technology at Berkeley Lab.

“Today’s society runs on electricity, and tomorrow’s even more so,” said Dr.Ruofan Wang, CEO of Teragen Energy. “By redefining what a fuel cell can do, Teragen Energy can drive down both electricity costs and emissions without sacrificing reliability.”

According to a company release, the fuel cell architecture is designed to improve cost, efficiency, power density, and responsiveness for distributed power applications.

The company plans to use the funding to expand its testing and manufacturing infrastructure, grow its engineering team, scale its fuel cell technology, and accelerate commercialization with data center, industrial, and utility partners.

Teragen is targeting applications that require onsite electricity generation, including data centers, industrial facilities, and utilities.

Victor Pascucci III, Managing General Partner at Energy Capital Ventures, said, “The natural gas industry is the backbone of the energy expansion. The industry needs more modular and scalable technology to provide the clean, safe, reliable, cost-effective energy of the future. Teragen’s next-generation fuel cells are vital to the future of energy and the energy expansion.”

The company said growing electricity requirements from artificial intelligence, advanced manufacturing, and electric mobility are increasing the need for additional power generation capacity. It is positioning onsite generation as an option for meeting electricity demand where grid capacity may be constrained.

In March, Photoncycle, a hydrogen-based energy storage solutions provider, raised €15 million (~$17 million) in a Series A funding round, led by NordicNinja, a Japan-backed venture capital fund in Europe, and Voima Ventures, a Nordic venture capital firm.

According to Mercom’s recently released 1H 2026 Funding and M&A for Energy Storage report, VC funding for energy storage companies in 1H 2026 totaled $1.6 billion across 51 deals, representing a 6% YoY decline compared to the $1.7 billion raised across 36 deals in 1H 2025.