Green Hydrogen Equipment Manufacturer Newtrace Raise $6.3 million in Funding

Bengaluru-based climate-tech startup Newtrace secured US$6.3 million in a Pre-Series A round from HDFC Bank, Mitsui Sumitomo, and Peak XV.

The round also saw participation from existing investors Aavishkaar Capital, Speciale Invest, and Micelio Technology Fund. In 2023, Newtrace raised US$5.65 million in seed funding from Sequoia Capital India, Aavishkaar Capital, Speciale Invest, and others.

Founded in 2021 by Prasanta Sarkar and Rochan Sinha, Newtrace specialises in developing high-performance electrode and electrolyser technology for green hydrogen production.

Green Hydrogen is produced using renewable energy, where water is split into hydrogen and oxygen via electrolysis, powered by electricity from solar panels or wind turbines.

The production of green hydrogen can help in decarbonising refineries, fertilisers, chemicals, steel, cement, mobility, and energy sectors.

Climate-tech startup Newtrace develops the electrolysers needed in green hydrogen production. Their flagship VoltaGen electrode innovation boosts efficiency in alkaline water electrolysers, cuts production costs by over 60%, and uses locally sourced materials without rare earth metals.

This funding will be used to scale pilot manufacturing of Voltagen electrodes, advance its commercial partnerships, and expand its engineering and manufacturing teams.

Newtrace’s work aligns well with India’s National Green Hydrogen Mission, introduced in 2023, which aims to position the country as a global hub for green hydrogen production, usage, and export.

The National Green Hydrogen Mission is an umbrella programme to establish a green hydrogen ecosystem and catalyse a systemic response to the sector’s opportunities and challenges.

The mission has an initial outlay of ₹19,744 crore till FY 2029-30. This includes ₹17,490 crore for the Strategic Interventions for Green Hydrogen Transition programme, ₹1,466 crore for pilot projects, ₹400 crore for research and development (R&D), and ₹388 crore towards other components.

The national mission also supports startups, and Newtrace is one of the beneficiaries to receive an incentive to manufacture electrolysers in India.

By 2030, the mission will be supported by about 125 GW of new renewable energy capacity dedicated to green hydrogen production, along with investments exceeding ₹800,000 crore (~US$90 billion).

According to the estimates, India’s green hydrogen market is projected to grow at a compound annual rate of 20–40 per cent over the next decade, making it the fastest-growing hydrogen ecosystem in the world.

Amidst this backdrop, with a fresh round of funding, Newtrace can play a pivotal role in building green hydrogen capabilities and supporting the net-zero goals of industries.