Hydrogen technology startup Electric Hydrogen (EH2) was valued at $1 billion after a financing round, a source familiar with the matter said on Tuesday.

Earlier on Tuesday, the company said it had raised $380 million in an oversubscribed series C financing round led by Fortescue, Fifth Wall and Energy Impact Partners.

The round also included investors BP Ventures, Oman Investment Authority, Temasek, Microsoft's Climate Innovation Fund and the United Airlines' Sustainable Flight Fund.

EH2 has raised over $600 million since it was founded in 2020, with investments from major heavyweights including Amazon and Honeywell.

Green hydrogen is touted as the clean-energy alternative to existing fossil fuels, and top corporates across the world are investing millions in an attempt to decarbonize their operations, fleets and factories.

"We're here to replace natural gas and coal with renewable green hydrogen. To address the global climate challenge, we need new technologies that help critical industries reduce their emissions," EH2 CEO and co-founder Raffi Garabedian said.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shinjini Ganguli)