TALLINN, Estonia – 25 Nov 2025 – PowerUP Energy Technologies has closed a €10 million Series A funding round to accelerate the manufacturing and commercialisation of its hydrogen-powered electric generators. 

The investment, co-led by dual-use venture firms Mercaton and ScaleWolf and joined by Estonia’s SmartCap Green Fund (funded by the European Union – NextGenerationEU), with strong participation from existing investors, will scale the technology, which is distinguished by its proven reliability in extreme operational environments.

The core of PowerUP’s strategy is its dual-use mission: delivering robust, reliable energy for both the demanding defence sector and critical commercial applications such as security and telecommunications.

Founder’s Vision: “Battle-Tested” Resilient Energy

PowerUP’s hydrogen fuel cell technology has secured international recognition for its demonstrated resiliency and reliability in extreme operational environments, including deployment and validation in critical areas such as Ukraine. This proven performance capability highlights the product’s role in advancing energy sovereignty for customers who prioritise reliable, national security-grade energy independence.

“PowerUP was founded on a clear mission: to deliver clean, reliable energy solutions. While other technologies are still being tested in labs, ours has already been battle-tested on the front lines in Ukraine. This is the very definition of dual-use innovation: a cleantech solution that has been forged and validated by the urgent needs of defence,” said Ivar Kruusenberg, Founder and CEO of PowerUP Energy Technologies. “This capital will directly allow us to expand our network of resellers, distributors and partners in defence and in the commercial sector.”

Accelerating the Dual-Use Mission

The €10 million injection will be strategically deployed to meet rising demand from both sectors:

• Commercial Expansion: Expanding sales and technical support teams to enter new commercial markets, focusing on backup power for critical infrastructure.
• International Footprint: Establishing strategic sales and support hubs in core target markets (e.g., Central Europe and North America) to localise service and capitalise on growing international interest in resilient energy solutions.
• R&D: Accelerating the development of higher-density fuel cell models tailored for diverse power requirements.

Investor Quotes

“At ScaleWolf, we value technologies that strengthen security and resilience where it matters most. PowerUP has shown that its systems can deliver dependable power in demanding environments, supporting both defence missions and essential civilian operations. We are proud to back a team that turns proven performance into meaningful dual-use capability,” said Dave Harden, Partner at ScaleWolf.

“PowerUP is a great example of a broadly applicable green technology company that can capture the changing market opportunities of green transition and quickly address new market needs in defence. PowerUP develops and manufactures hydrogen fuel cell generators as main power, backup power, or battery extender solutions for reliable and sustainable energy. This has also turned to be a critical technology for modern defence and security applications, like enabling advanced communication networks and surveillance systems with low noise, vibration, and heat signature, where the choice of tech is driven first and foremost by reliability and performance rather than climate objectives,” said Sille Pettai, Managing Director of SmartCap.

About PowerUP Energy Technologies 

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.

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 defence, such as energy independence and remote use.

About Investors

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 the first of its kind venture capital fund and an allied technology accelerator programme focusing on dual-use technologies that can cater to defence as well as commercial applications simultaneously. Located in Vilnius, it collaborates with private investors and the Lithuanian Ministry of Economy and Innovation to help select regional companies build and grow their Dual Use Technology businesses.

SmartCap is Estonia’s state-owned venture capital fund manager, dedicated to fostering innovation and growth within the Estonian economy. SmartCap Green Fund, funded by the European Union – NextGenerationEU, aims to propel sustainable innovation by investing in Estonian green technology companies with high growth potential. Operating both as a fund-of-funds and through direct investments, the SmartCap Green Fund focuses on sectors including energy, agriculture, food, transport, logistics, materials, chemicals, and the environment.