SmartCap’s €5 million investment to support Elcogen’s growth

Estonian clean energy technology manufacturer Elcogen has secured a €5 million investment from SmartCap, a venture capital fund supporting Estonian greentech companies.

According to Elcogen, the investment will fuel the company’s growth trajectory, enabling it to further expand operations, scale production capacity and drive business development to better serve existing and new customers worldwide.

Founded in 2001, Elcogen develops technology that converts fuel sources into emission-free energy and emission-free energy into green hydrogen. Reportedly, its solid oxide fuel cell (SOFC) and solid oxide electrolyzer cell (SOEC) technology offer an “efficient” solution to green hydrogen production, “reducing commercial costs so customers can deliver affordable energy solutions to meet net-zero targets.” The company’s technology is said to be a fully domestic product.

Enn Õunpuu, CEO of Elcogen, stated: “We are delighted to welcome SmartCap as a strategic investor. Elcogen is well-positioned to capitalize on the global shift toward clean energy and hydrogen technology, supported by over 25 years of expertise, proven solid oxide cell technology, a strategic presence in rapidly emerging hydrogen markets, and the invaluable backing of our key investors and partners. We look forward to working closely with SmartCap as we build on our momentum.”

Sille Pettai, CEO of SmartCap and Fund Manager of SmartCap Green Fund, funded by the European Union’s NextGenerationEU, commented: “Elcogen is the first scale-up company in the SmartCap Green Fund portfolio, receiving capital that complements the prior strategic investments from Baker Hughes and HD Hyundai to further support the development and construction of Elcogen’s new factory in Tallinn. The new plant will significantly increase the manufacturing capacity of solid oxide fuel cells and solid oxide electrolyser cells — technologies we see as key drivers of the green transition in industrial processes and enablers of energy security. The expansion reflects the growing need for highly efficient hydrogen technologies, such as Elcogen’s technology.”

To remind, in the spring of 2024, U.S. energy technology company Baker Hughes made a strategic investment in Elcogen. At the time, the parties revealed their intent to collaborate on green hydrogen production solutions based on Elcogen’s SOEC technology. Earlier, the company got support from Hydrogen One Capital Growth, HD Hyundai and Mirae, as well as the European Commission.