Newtrace Raises $6.3M to Make Green Hydrogen Affordable

Green hydrogen has long promised to revolutionize clean energy, but sky-high costs have kept it out of reach for most industries. Now a Bengaluru-based startup is tackling that challenge head-on with technology that could finally make the math work.

Newtrace just raised $6.3 million in funding led by HDFC Bank and Mitsui Sumitomo Insurance Venture Capital. The round included backing from Peak XV's Surge, Aavishkaar Capital, and several other investors betting on the company's approach to a trillion-dollar problem.

Founded in 2021 by Prasanta Sarkar and Rochan Sinha, Newtrace developed Voltagen, a proprietary electrode technology that makes green hydrogen production more efficient and longer-lasting. The innovation targets the electrolyzer stack, where most energy losses happen during hydrogen production.

The timing matters because the global green hydrogen market is projected to hit $38.1 billion by 2029 and balloon to $1.4 trillion annually by 2050. But right now, less than 1% of the world's hydrogen is green, with production costs being the main roadblock.

"Green hydrogen's cost problem is fundamentally a materials and manufacturing challenge," said CEO Prasanta Sarkar. The company plans to begin commercial deliveries of its Voltagen electrodes within the next 12 months.

The fresh funding will go toward pilot-scale manufacturing, customer validation, and supply agreements. Newtrace is also expanding its manufacturing and engineering teams to scale up production for electrolyzer manufacturers, green hydrogen project developers, and industrial gas companies.

The Ripple Effect

Making green hydrogen affordable could reshape entire industries. Transportation, steel production, and chemical manufacturing all need clean alternatives to fossil fuels, and cost-competitive green hydrogen opens those doors.

Co-founder Rochan Sinha emphasized the company's focus on reliable, scalable manufacturing that can serve the growing global hydrogen economy. When breakthrough science meets practical manufacturing, that's where real change begins.

India's climate tech ecosystem is maturing fast, with startups like Newtrace attracting serious institutional investment to solve global challenges. Clean energy isn't just coming, it's being built right now in labs and factories across the country.