The raise saw the state-backed RMB 20bn ($2.9bn) electrochemical energy storage-focused Shenzhen Energy Storage Fund invest in the original equipment manufacturer (OEM).

BriHyNergy, which produces PEM and AEM electrolyser stacks, plans to use the undisclosed funds to set up overseas production, scale existing manufacturing, undertake R&D, and hire staff.

The company told H2 View its global expansion will focus initially on Europe and South America, with 1GW of capacity earmarked for the first phase. It has not indicated how that capacity would be divided by region or technology.

BriHyNergy currently operates a 1GW electrolyser production line, a 4GW membrane electrode assembly production line, and a 4GW PEM production line in China.

A company spokesperson said the expansion would help the firm better serve green hydrogen projects globally.

Europe is emerging as a key market in the near-term for electrolyser OEMs due to the region’s green hydrogen mandates in transport and industry. In November, BriHyNergy shipped 3MW of its PEM systems to an undisclosed European project.

South American countries like Chile and Brazil are also increasing support for hydrogen production and onshoring equipment manufacturing.

However, it comes amid a growing mismatch between electrolyser manufacturing capacity and installed projects.

A World Bank group report recently said global manufacturing had reached 61GW, with another 16GW under construction, while operational electrolyser capacity was just 2.15GW.

The majority of this manufacturing expansion has been driven by China, which benefits from low-cost material supply chains and workforces.