Start-ups need risk financing

04.04.2024


Source: Energy & Management Powernews

The industry association Zukunft Gas is calling for improved financing conditions for young companies in Germany and Europe. To this end, it has published a network study.

A study by the start-up network H2UB shows that venture capital plays a decisive role in the development of innovative hydrogen solutions. However, young companies in this field face considerable financial hurdles, regulatory barriers and market access restrictions. The industry association Zukunft Gas is therefore calling for support for them.

Managing Director Timm Kehler said: "We must now support hydrogen start-ups with simplified regulations, financial incentives and the development of a robust infrastructure in order to catch up with the USA." He called for financial support and harmonized standards to give start-ups the necessary tailwind.

"A simplified regulatory environment, financial incentives and a robust infrastructure are the key to enabling young companies to take their innovations from concept to market maturity," said Kehler. The study "Mind the Gap: Venture Funding of Hydrogen Start-ups", conducted by the start-up network H2UB, highlights the investment trends in the EU and the USA and underlines the strategic importance of hydrogen start-ups.

More capital and less bureaucracy needed

The study reveals various challenges that are slowing down the growth of hydrogen start-ups in Europe. For example, hydrogen innovations are very investment-intensive and therefore usually require a high level of financing. Corresponding venture capital is more difficult to obtain in Europe than in the USA.

In addition, there are complex energy industry framework conditions that have not yet compensated for the additional costs of climate-neutral hydrogen. And there is a lack of uniform standards for the certification of low-carbon hydrogen, which is why it is already very difficult to trade this sustainable energy source within the EU.

"The European Hydrogen Bank and H2 Global should play an important role," demanded Kehler. In addition, Europe needs "properly designed guarantees of origin". They are essential for a transparent and comparable hydrogen market. "If we combine these elements with reduced bureaucracy for young companies, Europe can fully develop its innovative strength and counter the massive subsidies of the USA," hopes Kehler.

The study by the start-up network H2UB is available online.

Author: Susanne Harmsen