Electric Hydrogen (EH2) recently announced the successful completion of an oversubscribed $380 million Series C financing. The new funding round will accelerate the company’s manufacturing and deployment plans to meet strong customer demand for its power-dense green hydrogen systems.
This funding round was led by Fortescue, Fifth Wall and Energy Impact Partners and included new investors bp Ventures, Oman Investment Authority, Temasek, Microsoft’s Climate Innovation Fund, the United Airlines Sustainable Flight Fund, New Legacy, Kajima Ventures and Fatima Holdings USA. The existing strategic investors Amazon’s Climate Pledge Fund, Equinor Ventures, Mitsubishi Heavy Industries, and Rio Tinto continued their participation, as did previous financial investors Breakthrough Energy Ventures, Capricorn Partners, Prelude Ventures, and S2G Ventures.
EH2’s electrolyzer systems are able to produce green hydrogen from renewable electricity and water. And green hydrogen is needed for decarbonizing vital industrial processes like fertilizer production, steelmaking, base chemicals and many others. Switching from fossil-based sources to renewable green hydrogen has been too costly to be implemented at scale until now. EH2 is manufacturing and plans to deliver and commission 100 megawatt (MW) electrolyzer systems, each of which are capable of producing nearly 50 tons of green hydrogen per day at transformational low cost to help its customers meet their decarbonization goals.
The company is now installing manufacturing equipment in its 1.2GW factory in Devens, Massachusetts. And the factory will begin producing commercial electrolyzer systems in early 2024, with deliveries later in the year including the first customer-sited electrolyzer plant to be installed in Texas for New Fortress Energy. Electric Hydrogen has over 5 gigawatts (GW) of its electrolysis systems reserved by customers and anticipates strong ongoing demand.
EH2 has raised over $600 million since its founding in 2020.
KEY QUOTES:
“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. Electric Hydrogen’s 100MW electrolyzer systems do that. Today’s hydrogen comes from natural gas and coal and accounts for around 2.5% of global carbon emissions. There has not been a viable solution to this problem because renewable green hydrogen has been too expensive to produce at scale. The Electric Hydrogen team is changing that and the opportunities for decarbonization go far beyond today’s applications”.
- Raffi Garabedian, Chief Executive Officer and Co-founder of EH2
“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. Electric Hydrogen, just like Fortescue, is working at the speed and scale necessary to help deliver green-hydrogen projects around the world.”
- Mark Hutchinson, Fortescue Energy CEO; Fortescue – a global metals and green energy company – is both a lead investor and potential customer, having also signed a procurement agreement with EH2.
“bp Ventures invests in game-changing and innovative technology across bp’s transition growth engines and in the energy the world needs today. Electric Hydrogen’s 100MW green hydrogen systems use advanced technology that could significantly reduce production costs. Investing in technologies that could help to advance green hydrogen production is crucial as we progress our global hydrogen portfolio and work towards our net zero ambition.”
- Gareth Burns, Vice President of bp Ventures
“Scalable and cost competitive access to green hydrogen is key to the production of Sustainable Aviation Fuel – for United and others that seek a transition to clean energy. Electric Hydrogen’s novel electrolyzers have the potential to greatly reduce the capital cost of hydrogen production and their electrolyzers can be powered by a variety of renewable power sources. United’s need for sustainable aviation will require scaling the supply of green hydrogen, and we believe Electric Hydrogen’s technology could be game changing.”
- United Airlines Ventures President, Michael Leskinen
“We’ve re-invented electrolyzer technology to make it more efficient and far lower cost. 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. We’re driven by our mission to achieve fossil fuel parity for green hydrogen, and this new round of financing gives us everything we need to deliver on the promise of our technology”.
- Dave Eaglesham, Chief Technology Officer of EH2
“We’re grateful for the continued faith and encouragement of our previous investors and we’re excited to work with our new strategic and financial investors to grow as fast as we can to deliver technology that can change the world.”
- Derek Warnick, Chief Financial Officer of EH2
