Electrolyzer manufacturer Electric Hydrogen completes $380 million financing

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Electrolyzer manufacturer Electric Hydrogen has completed an oversubscribed $380 million Series C financing, bringing the company new capital to ramp up the manufacturing and deployment of green hydrogen systems.

The funding round was led by several companies, including Fortescue, Fifth Wall and Energy Impact Partners, and also included new investors like bp Ventures and Oman Investment Authority.

The company manufactures 100 MW electrolyzer systems, each of which it says can produce almost 50 tons of green hydrogen each day, at low costs. In total, it has raised more than $600 million since it was founded three years ago. 

Hydrogen produced from clean sources could play a key role in decarbonizing the U.S., especially when it comes to “hard-to-decarbonize” sectors – for instance, heavy transportation, as well as industrial and chemical processes. 

It has also emerged as a key priority for the Biden-Harris Administration. In June, the administration issued a national clean hydrogen strategy and roadmap, charting a pathway to domestically produce 10 million metric tonnes (MMT) of clean hydrogen annually by the end of the decade, 20 MMT annually by 2040, and 50 MMT annually by 2050. In addition, the administration plans to invest $8 billion in building regional hydrogen hubs.

This August, the administration also launched an inter-agency task force to create a  “whole of government” approach to clean hydrogen. The task force will be co-chaired by Mary Frances Repko, White House deputy national climate advisor and David Turk, deputy secretary of the U.S. Department of Energy (DOE). 

Some experts feel that the key to building out a green hydrogen economy is driving down the cost of solar electricity to produce that hydrogen. 

Electric Hydrogen’s electrolyzer technology is more efficient and lower cost, said Dave Eaglesham, the company’s chief technology officer.

“Now we’re scaling up rapidly to produce and assemble large electrolyzer systems for our industrial customers who are leading the shift from grey hydrogen to renewable green hydrogen,” he said. 

Electric Hydrogen is in the process of setting up manufacturing equipment in a 1.2 GW facility in Devens, Massachusetts. The factory is slated to begin manufacturing commercial electrolyzer systems early next year, and deliver them later in 2024. These deliveries include a system that will be installed at a New Fortress Energy green hydrogen project in Texas, which is scheduled to begin producing hydrogen in the fourth quarter of 2024, and reach full commercial operation in 2025. 

One of Electric Hydrogen’s lead investors and possible customers is Fortescue, a global metals and green energy company. 

“Fortescue is committed and focused on supporting the creation of green technology to help heavy industry decarbonize and producing green hydrogen at scale globally is integral to that,” said Mark Hutchinson, Fortescue Energy CEO. 

 

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