Ecolectro, a leader in green hydrogen technology, announced the closing of its $10.5 million Series A funding round, led by Toyota Ventures with participation from Starshot Capital, DNX Ventures, Energy Revolution Ventures, New Climate Ventures, Banco Popular Impact Fund, and Techstars, and others.
This funding round brings Ecolectro’s total capital raised to $27.7 million, including grant funding from the U.S. Department of Energy under the Infrastructure Investment and Jobs Act, New York State’s Energy Research and Development Authority (NYSERDA), and the National Science Foundation. The funding will be used to accelerate the development and deployment of Ecolectro’s groundbreaking Anion Exchange Membrane (AEM) electrolyzers, offering an affordable and scalable path to reducing carbon emissions through true green hydrogen.
The global green hydrogen market is projected to grow quickly over the next decade. Despite this rapid growth, the hydrogen industry still faces major costs and logistical challenges. And a significant barrier is the reliance on Proton Exchange Membrane (PEM) electrolyzers, which require iridium. This scarce and expensive metal has seen prices rise substantially in the last decade. Plus, PEM electrolyzers typically utilize PFAS, the forever chemicals often linked to cancer, infertility, and ozone depletion, that are facing severe restrictions in the US, EU, Japan, and other jurisdictions. These challenges are also compounded by the high costs of shipping and storing hydrogen, which can account for up to half the total delivered price.
Ecolectro, founded by Cornell PhD chemists Dr. Kristina M. Hugar and Dr. Gabriel G. Rodríguez-Calero, developed an AEM electrolyzer. This technology’s core is a proprietary membrane chemistry that eliminates the need for rare earth materials like iridium and harmful chemicals such as PFAS, instead utilizing readily available, recyclable, and eco-friendly materials. This membrane is highly durable, operating efficiently in high-temperature and alkaline conditions, and achieves over 70% efficiency (<47.5 kWh/kg) in typical operating environments, significantly outperforming comparable PEM and alkaline systems.
Ecolectro’s AEM electrolyzers provide dependable performance even with variable energy inputs, making them ideal for integrating solar, wind, and renewable energy sources and for industries where continuous hydrogen production is not always needed. Ecolectro’s plug-and-play electrolyzers are designed flexibly to meet specific customer needs. And their modular design allows customers to adopt hydrogen without large upfront investments and expand their system requirements over time.
By enabling on-site hydrogen production, Ecolectro significantly lowers the cost of hydrogen by eliminating the need for expensive transportation and storage infrastructure. And this also reduces environmental impacts by cutting carbon emissions from transport trucks and preventing hydrogen losses that typically occur during storage and handling. Customers who utilize Ecolectro’s electrolyzers to produce their hydrogen are also eligible to receive federal and state green hydrogen tax credits, enhancing the economic appeal of the solution.
Ecolectro also launched its first commercial deployment with Liberty New York Gas in Massena, New York, deploying a 10 kW electrolyzer pilot program to produce hydrogen that was blended with natural gas to heat commercial buildings, with each kilogram of hydrogen abating at least 5.5 kg of CO2 emissions that would have been produced if natural gas were used exclusively. And based on Liberty’s actual costs for water and electricity and Ecolectro’s at-scale manufacturing estimates, Liberty produced green hydrogen for under $2.50/kg—well below the U.S. Department of Energy’s 2030 target of $3/kg.
Applying federal and state tax credits and additional manufacturing synergies is expected to drive this cost below $1 per kilogram in the near term. Given the program’s success, Liberty has elected to increase the scale of its pilot deployment to 1 MW, laying the groundwork for future large-scale projects.
The Series A funding round will accelerate the development of Ecolectro’s commercial-class 250-500 kW and 1-5 MW electrolyzers, with prototypes set to begin testing with industry partners early next year and commercial availability expected by late 2025. And these systems are especially relevant for hard-to-decarbonize industries such as chemical refining, transportation, steel, and aviation, providing a scalable and affordable path to reducing carbon emissions through true green hydrogen.
KEY QUOTES:
“Hydrogen is key to decarbonizing heavy industry and other hard-to-abate sectors, but cost-prohibitive barriers have delayed its widespread adoption. With our innovative AEM technology, we’re breaking down those barriers today—not years from now. Thanks to our investors, including Toyota Ventures, we’re well-positioned to bring affordable green hydrogen to market at scale next year.”
– Dr. Rodríguez-Calero, Co-Founder and CEO of Ecolectro
“Ecolectro has developed a world-class AEM and electrolyzer stack that has the potential to drive the cost of green hydrogen down to $1.35/kg by 2030. Affordable green hydrogen is a promising path to achieving carbon neutrality, and this funding marks a critical inflection point in providing the potential for abundant, versatile and inexpensive sources of green power.”
– Lisa Coca, Climate Fund partner at Toyota Ventures and Ecolectro Board Member
