German electrolysis manufacturer Sunfire has secured guaranteed financing of €200m ($207.6m) to advance its electrolysis technology.
The financing is being provided by a consortium led by Commerzbank and including prominent German and European commercial banks Société Générale, BNP Paribas, LBBW and Ostsächsische Sparkasse Dresden.
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The commitment demonstrates trust and support from financial institutions and policymakers in the industrial capabilities and financial viability of the scale-up of climate technology.
The line arranged by Commerzbank will be utilised to secure customer advance payments and to fulfil contract and warranty obligations.
Sunfire chief financial officer Frank Posnanski stated: “With the guarantee line, we can not only realise existing projects but also drive industrial scaling with our own financial resources.
“The support demonstrates confidence in young companies and future-oriented technologies. It is a signal that Germany is determined to make its industry sustainable and fit for the future.”
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By GlobalDataThe financing has a five-year term with 80% of the loan amount secured by parallel default guarantees from the German federal government and the Free State of Saxony. The remaining 20% is provided by the banks themselves.
Parliamentary State Secretary to the Federal Minister of Economic Affairs and Climate Action Stefan Wenzel stated: “With the parallel federal-state guarantee, the federal government is supporting the production of electrolysers in Germany.
“Access to sustainable financing is a key element for resilient value chains in transformative technologies. In doing so, we are strengthening our strategic, energy policy and technological sovereignty, in alignment with the European goals of the Net Zero Industry Act.”
This instrument removes the requirement for Sunfire to supply cash collateral, allowing the German electrolysis specialist to gain industrial projects and customer orders in a more financially efficient manner.
It also enables Sunfire to utilise advance payments received for the production of electrolysers more effectively, without tying up its own funds as collateral.
The public guarantees also represent a special feature of this financing arrangement. This instrument is specifically designed to support the development of a future market, enabling Sunfire to realise several customer projects in parallel, thereby driving forward the development of the hydrogen market.
Commerzbank Structured Finance head in the Central/Eastern Region, Lars Ehle, stated: “We are proud that, together with Sunfire and the consortium partners, we have successfully arranged a medium-term financing that enables Sunfire to realise its project pipeline in a capital-efficient manner and continue its dynamic growth. This is transformation financing at its best!”
