Sunfire Secures €200 Million Guarantee Financing

The pioneering financing will support the Dresden-based electrolysis company to further advancing the realization of industrial customer projects. The instrument will be used specifically for the development of the hydrogen market – a strong signal highlighting the importance of climate technologies, the sustainable transformation of German industry and Sunfire’s strong performance.

Dresden, January 07, 2025 – German electrolysis pioneer Sunfire has secured €200 million in guaranteed financing. The financing is provided by a consortium led by Commerzbank and other leading German and European commercial banks. The consortium includes, in addition to Commerzbank, Société Générale, BNP Paribas, LBBW and Ostsächsische Sparkasse Dresden. The commitment marks a strong vote of confidence from both financial institutions and policymakers in the industrial capabilities and financial viability of the climate technology scale-up. It represents a significant milestone for Sunfire as a company but also for the electrolysis industry.

Financing Supports Focus on Production and Scaling

The guarantee line arranged by Commerzbank will be used to secure customer advance payments as well as contract fulfilment and warranty obligations. 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 guarantee financing has a term of five years.

The instrument eliminates the need for Sunfire to provide cash collateral. As a result, the German electrolysis specialist can secure industrial projects and customer orders financially more efficient. It also allows Sunfire to utilize advance payments received for the production of electrolyzers more effectively – without tying up its own funds as collateral.

The public guarantees also represent a special feature: this instrument is being specifically used to support the development of a future market. It will enable Sunfire to realize several customer projects in parallel, thereby driving forward the development of the hydrogen market.

Pioneering Financing for the Development of the Hydrogen Economy

“With the guarantee line, we can not only realize existing projects, but also drive industrial scaling with our own financial resources,” emphasizes Frank Posnanski, CFO of Sunfire. “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.”

Lars Ehle, responsible for Structured Finance at Commerzbank in the Central/Eastern Region, states: “We are proud that, together with Sunfire and the consortium partners, we have successfully arranged a medium-term financing that enables Sunfire to realize its project pipeline in a capital-efficient manner and continue its dynamic growth. This is transformation financing at its best!”

Stefan Wenzel, Parliamentary State Secretary to the Federal Minister of Economic Affairs and Climate Action: “With the parallel federal-state guarantee, the Federal Government is supporting the production of electrolyzers 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.”

Sunfire was supported by KPMG Debt Advisory and the law firm Clifford Chance in the structuring, negotiation, and closing process.