GeoPura and Siemens Unite to Accelerate Green Hydrogen Growth

Hello, Champions of Net Zero!

In an exciting development for the renewable energy sector, Siemens Financial Services has entered into a strategic financing agreement with GeoPura, a trailblazer in hydrogen technology. This partnership aims to support GeoPura as it embarks on its next phase of growth, reinforcing its status as a leader in zero-emission power solutions.

GeoPura is redefining energy consumption by providing hydrogen-fuelled clean energy alternatives that enable businesses and organisations to decarbonise their temporary, backup, off-grid, and grid augmentation energy needs. The company’s innovative approach has resulted in a burgeoning pipeline of business opportunities, alongside multi-site, multi-year contracts that have significantly boosted turnover, strengthened their balance sheet, and increased headcount, including the hiring of their first hydrogen apprentices.

How GeoPura Works

Utilising renewable energy sources such as solar power and wind, GeoPura produces green hydrogen through a process known as electrolysis. This hydrogen is then transported to customer locations where it is converted into electricity via a hydrogen power unit (HPU). Customers benefit from a simple rental model, paying only for the fuel consumed. The entire power generation process is not only clean but also carbon-free, with pure water being the sole by-product. This innovative method effectively eliminates harmful emissions, including CO2, NOx, SOx, and particulate matter, thereby improving local air quality and fostering a safer and healthier environment.

GeoPura is already collaborating with notable organisations such as the Ministry of Defence, Balfour Beatty, the BBC, and National Grid to help them reduce their carbon footprints. As one of the largest green hydrogen producers in the UK, GeoPura is currently expanding its production capabilities, bolstered by investments and government subsidies secured under the first hydrogen allocation round (HAR1) in 2023, with intentions to participate in HAR2 as well.

Challenges in Hydrogen Adoption

Despite its promise, hydrogen is often regarded as the ‘fuel of the future’, and its widespread adoption comes with notable challenges. One significant hurdle is the cost of producing green hydrogen, which is currently more expensive than hydrogen derived from fossil fuels. This disparity is primarily due to the substantial investments required to establish renewable energy infrastructure and electrolysis technology.

To date, GeoPura has successfully raised £92 million from its investor panel, underscoring the importance of continued financing as a critical enabler of growth. However, the nascent nature of the technology and equipment in the hydrogen sector presents another layer of complexity. As such, partnerships with knowledgeable financiers who comprehend the intricacies of the technology and are aligned with GeoPura’s long-term vision are essential.

The Partnership with Siemens Financial Services

In seeking to refinance existing hydrogen power units, trailer-mounted Multiple Element Gas Containers (MEGCs), and Multiple Cylinder Packs (MCPs), GeoPura identified Siemens Financial Services (SFS) as the ideal partner, thanks to their extensive industry expertise.

This partnership instils confidence in GeoPura, allowing them to scale operations effectively. With access to affordable financing, the company can accelerate its growth trajectory, meeting the increasing demand for clean energy solutions.

The Financing Journey

Derek Bulmer, Chief Financial Officer of GeoPura, shared insights into the importance of the discussions leading up to the deal with Siemens Financial Services. He noted, “In our case, the assets are fairly new and the business model is new too. So, from a financing perspective, it goes against the grain of how you would fund something.”

He explained that timing was crucial, as the process took around 18 months from initial conversations with Ollie Finkill and the SFS team to finalising an appropriate solution. “We wanted to work with SFS specifically because they have a reputation that precedes them. They can scale financing sums as we grow, and they genuinely understood the product and the technology.”

Bulmer emphasised the collaborative spirit of the partnership, saying, “It was a tricky project, but the SFS team was calm, dedicated, and determined to ensure we arrived at an appropriate solution. I felt that we had the same goal because SFS is invested in sustainable transformation. We see this as a lifetime collaboration, not a one-off deal.”

The Role of Private Financing in Sustainable Transformation

Bulmer further articulated the significant role private financing plays in advancing sustainable transformation. “It’s going to take an infrastructure change, which entails large capital investment. For that capital to be affordable and effective, it has to come in the form of asset finance. SFS is holding their own with leading banks in this respect, which is very impressive.”

A Tailored Financing Solution

The financing arrangement reached is a four-year facility designed to meet the unique needs of GeoPura’s operations. Ollie Finkill, Head of Specialist Finance at SFS UK, explained the rationale behind their decision to support GeoPura. “We can’t deny this is a difficult area, since businesses like GeoPura are at the beginnings of an expected high-growth trend, and there are many unknowns. However, we had multiple incentives.”

He cited the strength of GeoPura’s business plan, their success in attracting funding, and the good residual value of the assets being financed—the hydrogen power units, container systems, and cylinder packs—as key factors that informed their decision to proceed with the deal. “This was true asset finance, led by growth potential, not balance sheets. We are proud to be part of the work GeoPura is doing,” Finkill added.

Looking Ahead

As the renewable energy landscape continues to evolve, the collaboration between GeoPura and Siemens Financial Services stands as a testament to the potential of innovative financing solutions to drive sustainable growth in the hydrogen sector. This partnership not only exemplifies the importance of understanding the unique challenges and opportunities within emerging technologies but also highlights the role of collaboration in achieving Net Zero goals.

For those interested in learning more about the clean technology financing landscape, we invite you to watch the Siemens expert workshop, ‘Manage your Energy Transition towards Hydrogen’. Additionally, don’t miss the opportunity to engage with industry experts at the upcoming 2025 Distributed Energy Show on 12-13 March, where Ollie Finkill will participate in a panel discussion titled ‘Financing the Future: Unlocking Asset Capital for Net Zero Goals’.

For more details on the conference agenda, please visit here. You can also find Siemens Financial Services at the Scottish Energy Futures Conference on 4-5 March, where further insights into the future of clean energy financing will be shared.

As we move forward in our collective journey towards a sustainable future, partnerships like that of GeoPura and Siemens Financial Services will be crucial in overcoming the challenges we face and unlocking the full potential of hydrogen as a clean energy source.

Stay tuned to Net Zero News for more updates on the latest developments in the renewable energy sector, and join us in championing a sustainable future for all.