The low-carbon hydrogen industry has a wide range of funding needs, from angel finance for start-ups through to complex project financing structures for large schemes. But securing this support is not always easy in a nascent sector that is poorly understood by financiers.

Because of this, DAI Magister—an investment bank backed by DAI, a global development firm—has an important role to play in bringing hydrogen companies and schemes to life and to maturity.

The company advises international technology and climate companies, developing and executing growth financings and strategic sell-side mergers and acquisitions (M&A).

“DAI Magister was founded with the aim of working alongside ESG-focused CEOs from growth-stage companies to help them prepare for large fund-raises and M&A exits,” says Stefan Walter, a principal at the bank who covers the broader climate technology and energy transition sectors.

“We are committed to supporting companies at the forefront of innovation, driving impactful change in the hydrogen space and beyond. Since our inception, we’ve been instrumental in facilitating high-profile acquisitions and equity and debt fund-raises across diverse sectors and global markets.”

In the hydrogen space, DAI Magister covers clients across the value chain, from production infrastructure to mid-stream distribution and various end-market applications.

“Our clients enable the clean energy transition, realizing the cost-effective application of hydrogen in particular for all relevant end markets,” Walter says. “We support our clients with capital raises—both equity and debt—as well as M&A projects, in order to scale and help change the world.”

By providing access to the right sources of capital at the right time, the bank aims to unlock the full capabilities of some of the world’s most innovative companies, driving improvements in climate tech, deep tech and beyond, Walter says.

DAI Magister’s advisory services span sectors including climate tech, DeepTech, tech-enabled commerce, fintech and communications, and the bank operates across the UK, Europe, Africa and Middle East, and other emerging markets.

“What distinguishes us is our unparalleled deal experience, global investor network, deep sector expertise and rigorous execution,” Walter says. “This enables us to solve the most challenging transactions to bring forward the best opportunities and achieve maximum value for our clients.

“Across the company, we’ve advised on countless transactions, all of varying scope and specification, and this wealth of understanding equips us to work with organisations at any stage of the growth cycle.”

Walter himself has built a significant track record in the hydrogen sector, with experience of capital raises, initial public offerings (IPOs) and M&As.

“My credentials include private and public fund raises for electrolyser and fuel cell technology players, financing rounds for P2X platforms, IPOs in the electrolysis space and various sell-side mandates of hydrogen production companies and projects,” he states.

The main challenge he sees holding back the growth of hydrogen projects is that the gas is difficult and expensive to store and distribute. There are also safety concerns, as hydrogen is a flammable gas and ammonia derivatives pose toxicity risks.

“Turning to tech innovations will help project developers manage the drawbacks of hydrogen and overcome fundamental barriers to its deployment,” Walter notes.

“As one example, liquid organic hydrogen carriers can solve global distribution challenges by allowing organic compounds to transport hydrogen in ambient and liquid form.”

At present, though, the hydrogen market “continues to be in the developmental phase,” Walter says. “But the wider deployment of hydrogen as a reliable source of fuel is not far from becoming a reality,” he adds.

“In the medium term, we expect to see the primary applications of hydrogen in agriculture, chemical industries, heavy duty transportation and energy storage, with further end-markets like sustainable aviation fuel becoming additional demand drivers in the medium term.”

The transition to a hydrogen-based economy will require capital—to industrialize innovative technologies and scale cost-effective production of hydrogen and its derivatives. “This is where we support our clients as an investment bank and financial partner,” says Walter.

“The biggest challenge of working in the hydrogen sector is that the industry is constantly evolving, and it can be challenging to keep up with the latest developments, whether introducing new legislation or developing new technology.”

This constant change is also part of the fun, Walter says. “I’m excited to see how hydrogen deployment unfolds in the coming years as we move closer and closer to rolling out hydrogen as a fuel source at scale,” he comments.

“DAI Magister hopes to continue providing financial support for the companies that need it most, bringing vital innovations and competitive production projects to the hydrogen marketplace.” •