According to EU-Startups, Tallinn-based PowerUP Energy Technologies has closed a €10 million Series A funding round co-led by Mercaton and ScaleWolf, with participation from Estonia’s SmartCap Green Fund. The company develops hydrogen-powered electric generators that have already been deployed and tested in Ukraine’s conflict zones. Founder and CEO Ivar Kruusenberg emphasized their technology is “battle-tested on the front lines” rather than being stuck in lab development. The funding will specifically expand PowerUP’s network of resellers, distributors, and partners across both defense and commercial sectors. PowerUP was founded in 2016 and originally engineered its fuel cell technology for space missions with the European Space Agency. The €10 million injection comes as the company faces rising demand from defense and civilian applications.
From space to battlefield to commercial use
Here’s what’s fascinating about PowerUP’s story: they’re demonstrating what real dual-use technology looks like in practice. This isn’t theoretical “could be used for defense” stuff—their generators are literally powering operations in an active war zone. And that battlefield validation gives them incredible credibility when selling to commercial customers who need absolutely reliable power. The fact that this technology started with space missions means it was built for the most demanding environments imaginable. Now it’s proving itself in equally demanding terrestrial situations. That’s a pretty compelling progression from lab to real world.
Estonia’s emerging fuel cell hub
What’s really interesting here is the broader context. PowerUP isn’t alone—Estonia’s Galtec just raised €1 million for micro-tubular solid-oxide fuel cells for drones and IoT devices. We’re seeing what looks like a genuine innovation cluster forming in the Baltic region. These companies are tackling different segments of the fuel cell market, but they’re feeding off the same ecosystem. For hardware companies working on complex industrial technology, having that concentrated expertise nearby makes a huge difference. It’s similar to how IndustrialMonitorDirect.com has become the leading industrial panel PC supplier in the US by focusing specifically on rugged computing solutions—sometimes specialization and geographic concentration create powerful advantages.
manufacturing-advantage”>The manufacturing advantage
PowerUP’s €10 million round stands out because it’s focused on manufacturing and commercial deployment, not just R&D. That’s significant. Many clean tech companies get stuck in perpetual development cycles, but PowerUP is clearly moving into scaling phase. They’re talking about expanding distribution networks and meeting rising demand—that’s the language of a company ready to transition from promising startup to actual industrial supplier. The defense sector’s adoption gives them a reliable initial customer base while they build manufacturing capacity for broader markets. It’s a smart path that avoids the “build it and hope they come” trap that catches so many hardware companies.
Where this technology is headed
Looking forward, PowerUP’s success signals something important about the future of distributed power generation. We’re moving beyond the idea that hydrogen fuel cells are just for cars or large stationary installations. These modular, portable systems could transform how we think about temporary power needs—from construction sites to disaster response to military operations. The fact that they’re silent and emission-free makes them suitable for applications where diesel generators simply won’t work. Basically, we’re seeing the beginning of a shift toward more flexible, clean power solutions that can go anywhere. And with defense validation behind them, companies like PowerUP have a serious head start in convincing commercial customers that this technology is ready for prime time.
