Irish startup Nernst Electric has successfully secured €1.7 million ($2 million) in a seed funding round led by aquaculture investment firm Hatch Blue. The company specializes in developing on-site oxygen generation technology for fish farms, aiming to solve critical supply chain challenges. This new capital will be instrumental in constructing a demonstration unit to validate its innovative system in a real-world environment.
Addressing a Critical Industry Challenge
The aquaculture industry heavily relies on a continuous supply of oxygen to maintain fish health and promote growth. Current methods, such as trucked liquid oxygen or on-site generators, present significant logistical and financial burdens. These challenges are particularly acute for fish farms located in remote coastal areas where access is difficult.
Nernst Electric offers a novel solution by generating high-purity oxygen directly at the farm using advanced ceramic membranes. This technology provides a reliable supply at a dramatically lower cost and with greater energy efficiency. It effectively eliminates the supply chain dependencies and operational complexities associated with conventional oxygen sourcing methods.
A Breakthrough with Broad Applications
The company's technology combines expertise in solid oxide electrochemistry with advanced additive manufacturing to separate oxygen from ambient air. CEO Nick Farandos stated that their breakthrough reactor technology removes long-standing barriers to productivity across multiple sectors. This innovation promises near-zero maintenance and the industry's lowest operating costs for oxygen production.
The potential applications of Nernst's platform extend far beyond aquaculture into heavy industries like mining and steel manufacturing. Carsten Krome of Hatch Blue noted that this industrial-scale applicability was a key factor in their investment decision. These sectors face similar constraints in sourcing high-volume oxygen, making the technology highly versatile.
Investor Confidence and Strategic Development
Nernst Electric's relationship with its investor began in July 2025 when it joined the Hatch Blue accelerator and received pre-seed funding. Caitriona Kelleher of Hatch Blue praised the team's rapid and convincing progress from a concept to a working system. This impressive technical execution solidified the fund's confidence in backing the company's next stage of growth.
The investment was also welcomed by Bord Iascaigh Mhara (BIM), Ireland’s seafood development agency. BIM's CEO, Richard Donnelly, highlighted the growing investor appetite for Irish aquatech and the global demand for sustainable food solutions. He emphasized that Nernst's focus on efficiency and sustainability addresses key concerns for aquaculture operators worldwide.
Charting the Path to Commercialization
The newly acquired seed capital is earmarked for the construction and deployment of the company's first operational pilot-scale unit. This demonstration project is designed to prove the technology's performance and reliability under real-world farming conditions. It represents a crucial milestone in the company's development and validation process.
A successful demonstration will serve as the stepping stone toward initiating commercial customer trials with aquaculture partners. This validation will be essential for building market confidence and securing future investment. The company ultimately aims to raise a Series A funding round to scale its operations across the aquaculture sector.
This €1.7 million investment marks a pivotal moment for Nernst Electric, enabling the company to advance its groundbreaking technology from concept to commercial validation. By addressing the critical need for efficient on-site oxygen generation, the startup is poised to enhance sustainability in aquaculture. Its innovative platform also holds significant promise for transforming operations across a range of heavy industries globally.