Nanofilm Technologies International has announced a definitive agreement to acquire the remaining 35% interest in Sydrogen Energy, its hydrogen-focused joint venture with Temasek Holdings, for a total consideration of US$15 million. The transaction will see Nanofilm assume full ownership of Sydrogen, enhancing its strategic oversight and operational control over the subsidiary.
The divested stake is currently held by Temasek through its investment entity, Venezio Investments. The deal will be executed in two phases: the first tranche, representing 11.67% of Sydrogen’s existing share capital, is expected to complete in November 2025, while the second tranche of 23.33% is scheduled for completion in November 2026. The acquisition remains subject to shareholder approval.
Sydrogen Energy was established in July 2021 as part of Nanofilm’s strategic entry into the hydrogen economy. Nanofilm’s initial commitment to the venture was up to US$140 million, comprising a cash injection of up to US$21 million, the transfer of its hydrogen energy business, and the licensing of associated intellectual property for a 65% equity stake. Temasek contributed cash to take up the remaining 35% stake.
In a corporate announcement dated 5 July, Nanofilm stated that the full acquisition of Sydrogen Energy “underscores Nanofilm’s long-term conviction in the hydrogen economy and its growth potential.” The company noted that the venture has already made strong inroads in key international markets such as China.
Sydrogen’s high-performance offerings, including the SydroDIAMOND coatings and the recently introduced SydroPEARL solution for electrolysers, are reported to be in alignment with increasing global demand for durable, cost-effective hydrogen technologies.
Shi Xu, Executive Chairman and Group CEO of Nanofilm, commented that the acquisition marks a pivotal step in advancing the company’s hydrogen strategy. “By making Sydrogen Energy a wholly owned subsidiary, we can better align its activities with our broader corporate strategy and accelerate innovation in sustainable energy solutions.”
Gian Yi-Hsen, CEO of Sydrogen Energy, emphasised that the new ownership structure would provide Sydrogen with the agility to capture emerging opportunities across the hydrogen value chain. “As a Singapore-headquartered company with strong industrial foundations, Sydrogen Energy is uniquely positioned to serve as a key contributor to Asia’s hydrogen innovation hubs, while also addressing developments across global markets, including China and the Singapore maritime sector,” he said.
In its most recent business update for the first quarter of FY2025, Sydrogen reported a 158% year-on-year increase in revenue. Despite accounting for just 1% of Nanofilm’s total revenue — largely driven by its coatings business for the consumer electronics sector — the subsidiary’s growth underscores the potential of hydrogen-related solutions in the company’s diversification efforts.
Shares in Nanofilm closed at 64 cents on 4 July, down 3.79% for the day and 17.53% lower on a year-to-date basis.
-The Edge
