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BP Invests in Hysata's $111M Green Hydrogen Technology Round

BP plc’s BP unit, BP Ventures, established over 12 years ago to access disruptive technologies and innovative business models in the renewable energy sector, has consistently aimed to deliver strategic value for BP. In line with this objective, BP Ventures has co-led a $111.3 million Series B investment round in Australian electrolyzer manufacturer Hysata alongside Templewater.

Both BP Ventures and Templewater invested $10 million in the promising green hydrogen startup, aiming to accelerate the global transition to sustainable energy.

Hysata, based in Wollongong, New South Wales, is pioneering high-efficiency electrolyzers designed to produce green hydrogen with lower energy consumption and costs. The company's innovative capillary-fed alkaline electrolyzer represents a major technological breakthrough, aiming to make green hydrogen production more efficient and affordable.

BP Ventures and Templewater each contributed $10 million to this funding round, joining a robust group of existing and new investors. The newly secured funds will enable Hysata to expand production capacity at its Wollongong manufacturing facility and further develop its electrolyzer technology. The company aims to achieve gigawatt-scale manufacturing, propelling its mission to decarbonize hard-to-abate sectors such as steel, chemical manufacturing, and heavy transport.

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Gareth Burns, vice president of BP Ventures, expressed enthusiasm for the potential of Hysata’s technology, noting it as the first advanced alkaline electrolyzer technology in which BP Ventures has invested. He highlighted its potential to offer new options for BP's hydrogen business as the company aims to become a global leader in low-carbon hydrogen production. Burns emphasized that Hysata's technology could significantly save energy and reduce production costs, addressing key challenges in the green hydrogen market.

BP’s investment in Hysata aligns with its broader strategy to develop hydrogen energy hubs globally, including projects in Australia like H2 Kwinana and the Australian Renewable Energy Hub.Hydrogen is one of BP's key transition growth engines, and this investment marks a significant step in BP’s ambition to lead in low-carbon hydrogen production globally.

Zacks Rank & Key Picks

BP currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Marathon Petroleum Corporation MPC and Hess Corporation HES. While SM Energy and Marathon Petroleum sport a Zacks Rank #1 (Strong Buy), Hess carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments can create long-term value for shareholders.

The Zacks Consensus Estimate for SM’s 2024 earnings per share (EPS) is pegged at $6.60. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.

Marathon Petroleum's acquisition of Andeavor has expanded its foothold in the Permian Basin, creating an enviable retail and marketing portfolio. MPC’s emphasis on operational excellence, safety, and environmental responsibility, coupled with investments in low-carbon initiatives, positions it well for sustainable growth and continued value creation for shareholders.

The Zacks Consensus Estimate for MPC’s 2024 EPS is pegged at $19.53. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of B.

The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $9.54 and $11.15, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.

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BP p.l.c. (BP) : Free Stock Analysis Report

Hess Corporation (HES) : Free Stock Analysis Report

SM Energy Company (SM) : Free Stock Analysis Report

Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report

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