Estonian cleantech PowerUP secures €10M Series A to scale hydrogen generator production and global expansion

PowerUP Energy Technologies, a Tallinn-based cleantech startup, has closed a €10 million Series A funding round to accelerate the manufacturing and commercialization of its hydrogen-powered electric generators. The round was co-led by Mercaton and ScaleWolf and joined by SmartCap Green Fund.

About PowerUP

• PowerUP Energy Technologies, founded in 2016, develops and manufactures versatile, modular hydrogen fuel cell solutions for a wide range of applications, ranging from defence to industrial and off-grid sectors. 

• PowerUP’s generators offer silent, emission-free operation, making them ideally suited for sensitive military forward-operating units and critical civilian infrastructure like telecommunication towers and shelters.

• According to the company, the dual-use nature of the technology means that PowerUP’s solutions, first engineered for space missions with the European Space Agency, translate directly to the high demands of defense, such as energy independence and remote use.

Investment details 

The round was co-led by dual-use venture firms Mercaton and ScaleWolf and joined by Estonia’s SmartCap Green Fund (funded by the European Union’s NextGenerationEU).

• The Mercaton Investment Group is a specialised venture capital firm focusing on sectors like technological innovations, safety and security, and deep-tech across the Central and Eastern European (CEE) region. The firm operates as an investment fund with bases in Poland, Germany, and Liechtenstein.

• ScaleWolf is a Vilnius-based venture fund and accelerator focused on dual-use technologies with both defence and commercial applications. It works with private investors and the Lithuanian Ministry of Economy and Innovation to support regional companies developing and scaling solutions in this sector.

• SmartCap is Estonia’s state-owned venture capital fund manager, supporting innovation and economic growth. Its EU-funded SmartCap Green Fund invests in high-potential Estonian green tech companies, combining fund-of-funds activity with direct investments. The fund focuses on sectors such as energy, agriculture, food, transport, logistics, materials, chemicals, and environmental technologies.

PowerUP will use the €10 million to expand its commercial reach, strengthen its international presence, and accelerate R&D. This includes growing sales and technical teams, establishing hubs in key global markets, and advancing next-generation, higher-density fuel cell technology.

Read more: Estonian cleantech startup LynxPower secured €550,000 to boost AI-powered energy management