Industrial-scale green hydrogen generation company HYDGEN has raised $5 million in a mix of equity and debt round led by Transition VC, with participation from Cloudberry Pioneer Investments (Europe), Moringa Ventures (Singapore), and strategic family offices from India and Singapore.

HYDGEN will utilize the funding to accelerate its efforts to provide ultra-pure, cost-efficient hydrogen directly at the point of use through its proprietary anion-exchange membrane electrolyzer technology. The funds raised will be used to upgrade its Mangalore, Karnataka production facility to a semi-automated manufacturing line, enhance its single-stack capacity to 250 kW, and expand its operations in Japan, Europe, and the Middle East.

The company said its platform combines alkaline systems with proton exchange membrane technology. This technology will eliminate the need for expensive platinum-group metals, it said, claiming it can deliver ultra-pure hydrogen at lower costs to enable industries to generate hydrogen on-site and on-demand.

HYDGEN’s products range from 1 kW to 100 kW systems.

The company has pilot projects across India, Singapore, and other Southeast Asia. These projects span industrial applications, research institutions, and mobility. HYDGEN said that several of its partners have commenced their pilot projects into commercial-scale operations using its technology.

Low-emissions hydrogen production grew by 10% in 2023 and is on track to reach one million tons (MT) by the end of 2025, according to the International Energy Agency’s Global Hydrogen Review 2025. Currently, low-emissions hydrogen accounts for less than 1% of global production.

High costs, uncertain demand, regulatory uncertainty, and slow infrastructure development hindered the uptake of low-emissions hydrogen in 2024.

The capacity of the clean hydrogen market is expected to expand to 170 MT by 2030 and reach 600 MT by 2050, according to Deloitte’s 2023 Global Green Hydrogen Outlook.

It is estimated that over $9 trillion in cumulative investment will be required for the global hydrogen supply chain, with developing economies accounting for $3.1 trillion of that investment.