Sunfire secures €200m in guarantee financing for the development of the H2 economy

The €200m financing is set to support the Dresden-based electrolysis company with the development of the hydrogen market and in creating a sustainable market.

German electrolysis company, Sunfire, has secured €200 million in guaranteed financing.to boost its hydrogen development whilst highlighting the importance of climate technologies.

The five-year financing, which was provided by a consortium led by Commerzbank and other leading German and European commercial banks highlights a vote of confidence from financial institutions in the viability of the climate technology scale-up. 

Financing Supports Focus on Production and Scaling

The guarantee line arranged by Commerzbank will secure customer advance payments, contract fulfilment, and warranty obligations.

According to Sunfire, 80 percent of the loan amount is secured by parallel default guarantees from the German Federal Government and the Free State of Saxony, with the remaining 20 percent provided by the banks themselves. 

The instrument eliminates Sunfire’s need to provide cash collateral allowing Sunfire to more efficiently secure industrial projects and customer orders financially.

It also allows Sunfire to utilise advance payments received for producing electrolysers more effectively without tying up its funds as collateral.

Pioneering Financing for the Development of the Hydrogen Economy

Frank Posnanski, CFO of Sunfire, emphasised how the finance maintains the importance of future technologies.

Posnanski said: “With the guarantee line, we can not only realize existing projects but also drive industrial scaling with our 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 added: “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.”