Delaware Money Moves: Millions in federal clean energy funding for greentech startup Versogen

Companies in pharma, finance and greentech reported new growth since April, landing them on May’s edition of Money Moves. The monthly column tracks which companies raised another round, received a grant or otherwise strengthened financial standing in Delaware.

Movers this month range widely. They include the Wilmington oncology pharmaceutical developer Incyte, healthtech company Truveris, JPMorgan Chase bank, green hydrogen startup Versogen and semiconductor part manufacturer Phase Sensitive Innovations (PSI).

There are no huge surprises here, but we are taking note of the expansion of a company in the semiconductor sector. Thanks to the $280 billion CHIPS and Science Act, we expect the domestic semiconductor industry to keep growing, including for local Delaware manufacturers.

Versogen’s membrane technology gets Energy Department funds

Versogen, a University of Delaware (UD) spinoff, is finalizing contracts to receive a portion of $4.7 million in Department of Energy funding to research, produce and distribute clean hydrogen as part of the Mid-Atlantic Clean Hydrogen Hub. The startup develops membranes used to create green hydrogen that can be converted into a zero-emission fuel.

Formerly known as W7Energy, Versogen grew from research by UD professor Yushan Yan. It came into  its own at the Delaware Innovation Space before moving to the FMC Stine Research Center in Newark. The company added 25 new jobs in the last two years.

In December, Versogen reached a membrane production capacity of one gigawatt per year. In other words, it achieved the capability to scale production, making large-scale energy projects using green hydrogen possible. Less than 1% of hydrogen for fuel is generated in an eco-friendly way, according to the Paris-based International Energy Agency, largely because scaling green hydrogen production was a challenge.

Incyte expands its work in clinical dermatology

Cancer drug developer Incyte, headquartered at Augustine Cutoff in Wilmington, purchased San Diego-based clinical-stage dermatology company Escient for $750 million. It aims to further develop its innovations in anti-inflammatory and autoimmunity topical treatments as it grows in the skin treatment sector

Incyte discovered its popular pharmaceutical Opzelura, a treatment for pigment loss,  while researchers were working on the cancer drug Jakafi. The discovery led Incyte to venture further into dermatology, the company says.

Superconductor parts manufacturer PSI stays in Delaware

Another UD spinoff, PSI, committed to staying in its hometown. The company is expanding its 20,000-square-foot space at Sandy Brae Industrial Park in Newark by taking over another 12,000-square-feet area of the park, including 8,000 square feet that will be turned into new lab space.

The manufacturing company specializes in radio-frequency components, devices and systems. PSI received a $139,800 grant from the Council on Development Finance and a $566,090 grant from the Delaware Strategic Fund to support the cost of expansion. It plans to continue recruiting locally from the UD and Delaware Technical Community College, as it anticipates booking at least $20 million in contracts in the next year, according to the company.

More moves:

• Truveris, a healthtech software development company with a location in Wilmington and offices in New York City, raised $15 million in Series E funding for its pharmacy cost management platform that aims to reduce pharmacy spend.
• JPMorgan Chase, which has its credit card hub in Wilmington, opened its first Chase Bank in Kent County. The Dover location’s opening illustrates the end of the first phase of the bank’s Delaware expansion.
• A 124,784-square-foot industrial site in Seaford, formerly occupied by Grayling Industries, sold to an undisclosed Wilmington LLC for $7.4 million.