#InnovFin: EUR 12 million loan from EU to Estonian clean tech company Elcogen


  • EUR 12 million quasi-equity facility for further research and development, supported by the European Commission under the InnovFin programme.
  • Very first InnovFin support for a company in the Baltics provided by the EIB; financing will enable Elcogen to bring its highly-efficient fuel cell technology to the market.

The European Investment Bank (EIB) has signed a EUR 12 million quasi equity loan facility with Estonian company Elcogen in Ülemiste city (Tallinn) today. The loan is the first in the Baltic countries to get support under the InnovFin – EU-finance for innovators programme, which is financed from the EU’s research and innovation programme Horizon 2020. Specifically, the financing falls under InnovFin’s “Energy Demonstration Projects” (EDP) facility.

The goal of the financing is to aid in the set-up of a demonstration manufacturing plant for cells and stacks used in solid oxide fuel cell systems, creating highly skilled local jobs in the process. The financing enables the company to invest in the research and development of fuel cells, to increase production volumes and to start its mass-manufacturing processes. This provides Elcogen with the opportunity to bring competitive fuel cell-based electricity and hydrogen solutions to the mass market and meet the growing demand from customers, including leading industrial companies in both Europe and Asia.

The EIB’s Vice President Alexander Stubb commented: “This project is the result of years of extensive research, both internally and in collaboration with leading universities and institutes. Elcogen has managed to come up with one of the most efficient fuel-cell technologies around, and I think it’s only logical that the EIB and InnovFin should support such European innovators - to keep and support this know-how within the European innovation ecosystem.”

Elcogen’s CEO, Enn Õunpuu, said: “We have proven to our customers that fuel cells developed in Estonia, in cooperation with leading European research institutes, are the most efficient in the world. The EIB loan is an important milestone in bringing our technology to the mass market. In three years’ time we see ourselves as world's leading producer of fuel cells, because only in this way our customers can provide affordable and innovative energy solutions to end users.”

Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “This deal with Elcogen is a good example that the future of innovation is science-based. We are now making headway in the transition to a resource-efficient and climate-resilient future and we need to bring more ideas like these to market with the help of EU funding.”

At completion, the Elcogen plans to manufacture approximately 2 million cells per year, accounting for an electrical capacity of 50MW. The fuel cell technology that Elcogen has developed, converts a range of fuels, mainly hydrogen and biogas, into electrical energy with a very high electrical efficiency, compared to other commercially available fuel cells.

Elcogen’s patented technology has the potential to become less expensive than competing technologies as it uses standard processes and widely available materials in cell manufacturing. Key applications for the systems using this type of fuel cell technology are residential power generation systems, industrial power generation units and further off-grid power generation.

Background information:

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. Over the last 5 years, the EIB made available nearly EUR 830 million to Estonian projects in – among others - the tech, infrastructure and transport sectors.

Founded in 2001, Elcogen is an Estonian manufacturer of the world’s most efficient fuel cells. The company has developed the next generation of fuel cells, delivering the market’s most efficient solid oxide cell technology suitable for electrolysis and fuel cell operation, while also solving key issues around cost, scale and lifetimes. Prior to this EIB loan, Elcogen had already raised EUR 18 million from private investors and public funds. In addition to the EIB loan, Elcogen intends to continue to raise equity capital from new and existing investors in the near future.

Fuel cells are a new generation of clean energy generation technology that enables to generate electricity without the need for internal combustion. The production of electricity through fuel cells is significantly more efficient, it does not release polluting substances and is safe. In addition, fuel cells can produce "green" hydrogen, which will play an important role in the future of energy storage. Fuel cell technology is at the heart of a European and global energy strategy aimed to reduce the use of fossil fuels and limit CO₂ emissions.

InnovFin Energy Demonstration Projects provides loans, loan guarantees or equity-type financing typically between EUR 7.5 million and EUR 75 million to innovative demonstration projects in the fields of energy system transformation, including renewable energy technologies, smart energy systems, energy storage, carbon capture, and storage/use, and hydrogen and fuel cells, helping them to bridge the gap from demonstration to commercialisation. The Facility is implemented directly by the EIB and has been established under Horizon 2020, the EU Framework Programme for Research and Innovation (2014-2020).

Press Contacts:
EIB: Tim Smit, +352 691 286423, t.smit@eib.org
Elcogen: Marek Roostar, +372 6346 752, marek.roostar@elcogen.com
European Commission: Katerina Kokesova, +32 2 29 53195, Katerina.KOKESOVA@ec.europa.eu
EC Representation in Estonia: Hanna Hinrikus, +372 626 4411, Hanna.HINRIKUS@ec.europa.eu


24.10.2023HD Hyundai makes a Strategic Investment in Elcogen
26.09.2023SolydEra and Convion to jointly address growth in fuel-cell and hydrogen market
04.05.2023Convion And Shell Form Partnership To Commercialise Solid Oxide Electrolysers (SOEC)
04.05.2023Norsepower secures €28 million from investors
13.12.2022Octopus Energy Group’s Kraken acquires Power Fund III investee Depsys
18.08.2022Norsepower signs agreement with Dalian Shipbuilding Industry Co. Ltd. to install Rotor Sails onboard two newbuild CO2 carrier vessels
10.05.2022Elcogen receives €24 million investment from HydrogenOne
21.07.2021Merus Power Oyj:n First North -listautumisanti on ylimerkitty, yhtiölle noin 8 000 uutta osakkeenomistajaa – kaupankäynti alkaa arviolta 8.6.2021
15.05.2021Kestävän ja energiatehokkaan tulevaisuuden mahdollistava teknologiayhtiö Merus Power suunnittelee listautumista First North - markkinapaikalle
01.05.2021Cority Acquires Power Fund III Investee WeSustain
18.12.2020Half of the Top 10 "most sustainable companies in Germany" rely on WeSustain as software partner
21.01.2020Test of wind propulsion on Maersk Pelican completed: Norsepower Rotor Sails confirmed savings of 8.2% fuel and associated CO2 on Maersk Pelican
21.01.2020OGCI Climate investments leads MEUR8 investment in Norsepower
21.01.2020Elcogen Named Winner of Innovation at European Business Awards 2019
01.10.2019Introducing WeSustain’s ESG Management
02.09.2019Swiss smart grid expert opens subsidiary in Singapore
12.02.2019CHF 13.2 million: Successful financing round strengthens DEPsys in Smart Grid growth market
12.02.2019#InnovFin: EUR 12 million loan from EU to Estonian clean tech company Elcogen
31.10.2018Cajo Technologies Oy voitti Kasvu Open 2018 kilpailun
31.10.2018Cajo Technologies Oy is the winner of Growth Open (in Finnish: Kasvu Open) 2018 competition
08.02.2018Wello to export Wave Energy Converters to China
08.02.2018New clean energy system to make Finnish business district self-sufficient
18.01.2018Swiss Smart Grid Solution Company DEPsys Raises Additional CHF 2 Million of Funding
09.11.2017Convion SOFC generates zero emission electricity and heat from biogas in Italy
02.11.2017Power Fund II investee Visedo sold
21.09.2017Visedo CEO, Kimmo Rauma, Takes Electric Message to the World
30.05.2017Maersk Tankers in wind power project
11.05.2017DEPsys has been selected for global energy startup accelerator program Free Electrons
11.05.2017Superb performance with renewable biogas
06.03.2017Application test of innovative off-grid power supply
02.03.2017Norsepower Rotor Sail Solution to be installed onboard Viking line cruise ferry vessel
19.12.2016Visedo is ready to take a global lead in providing smart and high performance electric drivetrain systems
07.09.2016WeSustain develops reporting software for the partnership for sustainable textiles
13.06.2016Swiss Smart Grid Solution Company DEPsys Raises CHF 3 Million of Financing
22.03.2016Finnish Laser Marking Machine Provider Cajo Technologies heads to US markets
29.01.2016Performance monitoring and verification drives orders and investment for Norsepower
11.01.2016Visedo joins forces with Dutch marine electric system expert Electric Power Conversion B.V.
03.11.2015Sustainability Management 2.0“ – WeSustain receives top marks
30.10.2015WeSustain becomes a SASB Enterprise Resource Platform (ERP) Partner
11.06.2015Visedo’s electric drive trains to equip world’s largest electric ferryboat
14.01.2015Merus Power wins its biggest contract ever
14.12.2014Growth capital for WeSustain (Series B)
21.10.2014Self-Sufficient and Emission-Free Energy to Go
21.10.2013Fuel cell company Siqens receives funding from Finnish investor VNT Management Oy and German KfW Bank
11.10.2013Mobilemarking Gets Nearly
€1 Million in Funding for Internationalization
10.09.2013Wello’s Wave Energy Converter Producing Clean Energy
06.05.2013GASEK Oy, CCM-Power Oy and Asmacon Oy to combine their business
31.01.2013Final Closing of Power Fund III
16.01.2013Valopaa Receives a Significant Capital Investment from VNT Management