Dynelectro, a Danish startup specialising in sustainable energy solutions, has raised an €11 million investment. The round was led by Denmark’s Export & Import Fund Organisation (EIFO) that recently invested in Danish startups Kvantify and EvodiaBio, Yara Growth Ventures, Vsquared Ventures, PSV DeepTech, The Footprint Firm, and the European Investment Bank (EIB).
Additionally, it secured €9 million in grants through industrial collaborations with leaders such as Shell and European Innovation Council, underscoring the robust support for their vision of sustainable energy solutions.
How will it use the investment?
Dynelectro will utilise the funds for the development of Dynamic Electrolyser Units (DEUs) from 150-kW prototypes to commercial-scale fully modular 1-MW units. This will facilitate a broader deployment into the green hydrogen market.
“Dynelectro is an exemplary example of a company that has developed sustainable solutions with venture capital that we need both in Denmark and worldwide. We are pleased that a Danish company has cracked the code to make electrolysis more profitable, and how Dynelectro strengthens Europe’s position as a pioneer in Power-to-X,” said Christian Winther, Partner, Tech & Industry, EIFO Investment.
According to the European Innovation Council technical evaluation, “[the technology] may significantly transform and strongly accelerate a major new market. It therefore justifies a breakthrough characterisation. It supports the adoption of hydrogen as a major clean energy carrier and strongly contributes to the EU’s Green Deal.” The European Investment Bank’s involvement in this round marks a step change in our maturity, transitioning our investor profile toward industrial investors.
What challenge does it resolve?
Current electrolysis technologies are estimated to waste 25-50% of input electricity, limiting their commercial and sustainability potential. Solid oxide electrolysis (SOE) offers the highest conversion efficiency but has been hindered by its short lifespan, making it cost-prohibitive.
Dynelectro’s innovative AC:DC technology addresses this issue, extending SOE lifespan from 2 years to 10 years, thereby aligning it with other electrolyser technologies. This advancement reduces costs and enables quick production adjustments, aiding in grid balancing through ancillary services. Consequently, Dynelectro becomes a crucial partner for Power-to-X developers striving to lower green hydrogen costs.
What does the company do?
Founded by Søren Jensen and Samantha Phillips in 2018, Dynelectro develops advanced, sustainable energy solutions. Utilising its solid-oxide electrolysis technology, the company achieves unprecedented system performance and lifespan. Its innovations enable operators to seamlessly adjust production based on the availability of cost-effective renewable energy.
The company commercialises MW-scale DEUs, delivering clean hydrogen to unlock syngas and e-fuel production. The completion of the first 1-MW unit installation at European Energy’s renewable energy facility in Denmark is scheduled for the first half of 2025, demonstrating the practical applications and benefits of this advanced energy solution.
It supports heavy industries and chemical production by providing on-site hydrogen, reducing emissions, generating synthetic fuels, and enabling the green energy transition in these sectors. SOE is poised to revolutionise the energy sector by enhancing energy efficiency, reducing costs, and facilitating broader renewable integration.
“We are excited to reach this pivotal stage in our growth,” said Sune Lilbaek, Chief Executive Officer of Dynelectro. “This investment round not only validates our technology but also sets the stage for our growth and significant advancements in sustainable energy in general.”
Eva Nielsen, Global PTX Advisor, Ramboll Group, said: “Dynelectro has made inventions and holds rights to several significant patents that have the potential to lead to a significant breakthrough for hydrogen technology and Power-to-X.”
What do we think about the company?
Dynelectro is a promising Danish startup, making strides in sustainable energy solutions with its advanced solid-oxide electrolysis technology. By extending the lifespan and efficiency of electrolysis, it addresses critical challenges in the green hydrogen market. The recent investment and grants will enable the development of modular 1-MW units, enhancing energy efficiency and reducing costs. Dynelectro’s innovations position it as a key player in the green energy transition, with strong support from industry leaders and investors.
