The Estonian deeptech startup is currently in the midst of a funding round, aiming to secure €7 million by April 2024.

According to Dr. Ivar Kruusenberg, Founder of PowerUP Energy Technologies, a pivotal realisation occurred during the sales of their initial product, discovering that 90% of their clients predominantly use batteries. This prompted the pursuit of a hybrid solution utilising hydrogen fuel cells to enhance battery durability. The pivot, facilitated by existing hardware, was a seamless transition for PowerUP. "A couple of months of consistent work, and the pivot was done," said Kruusenberg.

"Today, we have successfully developed a modular 2.5-kilowatt system, scalable to a remarkable 40-kilowatt system," stated Kruusenberg, highlighting its application by Telia and the Dutch military as examples. Notably, the Dutch military transitioned from a 60-kilogram battery bank to PowerUP's 24-kilogram solution, providing double the electricity capacity.

In addition to the hybrid system, PowerUP has developed an efficient half-sized fuel cell in. Distinguishing themselves globally, they boast air-cooled fuel cells that are exceptionally light and compact. “The fuel cell is the heart and the brain of our technology. This is something that makes us truly unique in the world. Besides that, we are also developing closed cathode hydrogen fuel cells for lunar and Mars exploration missions in collaboration with the European Space Agency,” noted Kruusenberg.

A-round of €seven million and ambitious expansion plans

PowerUP Energy Technologies is actively seeking funding, targeting a total of €7 million to fuel expansion into the US and Asia, alongside increased production capacity. While most current investors hail from Estonia, the company is diversifying its funding sources by exploring opportunities in Europe and funds.

Kruusenberg acknowledged investor caution in the current landscape, emphasising the challenge of hardware-focused projects and lingering scepticism toward hydrogen technologies. "We call it educating investors because hydrogen is actually a viable topic today," he commented.

With the allocated funds, PowerUP aims to establish comprehensive production capabilities by 2025, anticipating a shift from direct client engagement to attracting a larger clientele. The factory is expected to be operational in the third quarter of the next year.

In addition to their European presence, PowerUP plans to reintroduce its solution to the US, leveraging its technology to address electricity supply challenges faced by cities. India, with its focus on hydrogen and innovation, also emerges as a key market for the company.

PowerUP anticipates achieving break-even status by 2025, showcasing the viability of the current market for hydrogen technology without continuous reliance on additional capital. However, the company envisions raising an additional seven million euros, with specific timelines yet to be disclosed.

Market agonistic solutions applicable for critical infrastructure

Currently focusing on the Netherlands and Scandinavia, PowerUP addresses high demand in sectors like construction, telecommunication, and pharmas/clinics. The company already collaborates with two of the biggest Estonian telecoms and engages with the military sector, actively exploring hydrogen solutions.

Recent successful tests with the Estonian Defence Forces affirm the safety of PowerUP's hydrogen solutions. "In everyday conditions, the diminished hazard of hydrogen cylinders is a game-changer, paving the way for broader acceptance and global adoption of hydrogen fuel solutions. Our comprehensive tests play a crucial role in advancing our understanding of hydrogen as not only a secure energy source but also a reliable and sustainable cornerstone for the future of energy." said Dr. Ivar Kruusenberg, CEO of PowerUP Energy Technologies.

PowerUP is positioned to contribute significantly to national energy security, especially as hydrogen production capabilities expand in Estonia. Rand Hydrogen's upcoming equipment launch adds to the growing potential of this sector, making PowerUP a crucial player.

As the hydrogen sector grows globally, PowerUP envisions itself as a leading producer of batteries, fuel cells, and modular energy solutions.