Sunfire, a German global leader in industrial electrolyzers, has secured €200 million in guaranteed financing to propel the development of the hydrogen market. This landmark financing, arranged by a consortium led by Commerzbank and including Société Générale, BNP Paribas, LBBW, and Ostsächsische Sparkasse Dresden, underscores a strong vote of confidence in Sunfire’s technological and financial viability. The funding also highlights the critical role of climate technologies in Germany's sustainable industrial transformation.

Supporting industrial growth and the hydrogen economy

The guarantee line will enable Sunfire to secure customer advance payments, fulfill contracts, and meet warranty obligations without requiring cash collateral. This structure allows the company to allocate advance payments toward the production of its pressurized alkaline and solid oxide (SOEC) electrolyzers more effectively, enhancing operational efficiency and industrial project execution.

Eighty percent of the loan amount is backed by default guarantees from the German Federal Government and the Free State of Saxony, with the remaining 20 percent secured by the consortium banks. This innovative financing arrangement eliminates the need for Sunfire to tie up its funds as collateral, allowing the company to focus on scaling its operations and driving parallel customer projects in the burgeoning hydrogen market.

Driving climate technology and industrial sovereignty

Frank Posnanski, CFO of Sunfire, emphasized the transformative potential of the financing:
"With the guarantee line, we can not only realize 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."

Stefan Wenzel, Parliamentary State Secretary to the Federal Minister of Economic Affairs and Climate Action, highlighted the broader implications:
"With the parallel federal-state guarantee, the Federal Government is supporting the production of electrolyzers in Germany. This aligns with the European goals of the Net Zero Industry Act, strengthening our strategic, energy policy, and technological sovereignty."

Consortium and expert support

The financing, structured for a five-year term, was facilitated by KPMG Debt Advisory and legal experts at Clifford Chance. Lars Ehle, responsible for Structured Finance at Commerzbank, lauded the effort: "Together with Sunfire and the consortium partners, we have successfully arranged medium-term financing that enables Sunfire to realize its project pipeline in a capital-efficient manner and continue its dynamic growth. This is transformation financing at its best!"

A milestone for the hydrogen industry

This pioneering financing is a milestone not only for Sunfire but for the electrolysis and hydrogen sectors at large. By enabling the development of climate technologies and supporting industrial customer projects, this initiative positions Sunfire as a key player in the global transition to sustainable energy.