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EH2 Raises $380M to Become the Hydrogen Unicorn, Fortescue ‘Lead Investor’ in Electrolyser Startup

eh2-electrolyser

Electric Hydrogen’s (EH2’s) successful Series C funding round, led by prominent investors and joined by a consortium of strategic backers such as Fortescue, marks a significant step forward in the journey toward green hydrogen production. With their cutting-edge electrolysers and unwavering commitment to reducing the cost of green hydrogen, Electric Hydrogen (EH2) is poised to become a major player in the global transition to sustainable energy solutions. This investment endorses EH2’s vision and heralds a more eco-conscious and sustainable future for the energy sector.

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Electric Hydrogen closes $380M funding round, and becomes the first hydrogen unicorn

Electric Hydrogen closes $380M funding round

Chief Technology Officer Dave Eaglesham is holding a prototype of the electrolyser stack used to split water developed by Electric Hydrogen (EH2).

Electric Hydrogen (EH2), a Massachusetts, US-based manufacturer of electrolysers for critical industries to produce the lowest cost green hydrogen, has raised $380M in Series C equity financing. The round was led by Fortescue Metals Group (Fortescue), Fifth Wall and Energy Impact Partners. It included new strategic investors bp Ventures, Oman Investment Authority, Temasek, Microsoft, United Airlines, New Legacy, Kajima Ventures and Fatima Group. Existing investors Amazon Climate Pledge Fund, Equinor, Mitsubishi Heavy Industries, Rio Tinto, Breakthrough Energy, Capricorn Investment Group, Prelude Ventures and S2G Ventures also participated in the round.

EH2’s electrolysers are the most powerful in the world and can produce green hydrogen at a lower cost than any other technology. This makes EH2’s electrolysers a critical component of the transition to a clean energy economy.

The new funding will accelerate EH2’s manufacturing and deployment plans to meet strong customer demand for electrolysers. EH2 has a team of nearly 300 people with offices in California and Massachusetts. The company was founded in 2020 and has raised more than $600M from financial and strategic investors.

The rise of electrolysers in the renewable energy landscape

What is electrolysers?

Electrolysers are key components in producing green hydrogen, a clean and sustainable alternative to fossil fuels. Green hydrogen is produced through electrolysis, which uses electricity to split water into its constituent elements, hydrogen and oxygen. This green hydrogen can be used in various applications, including transportation, energy storage, and industrial processes, without emitting harmful greenhouse gases.

Fortescue: The investment and 1 GW supply deal

fortescue-future-industries

Fortescue’s decision to invest in this electrolyser startup showcases its commitment to renewable energy and the future of the green hydrogen industry. While Fortescue is primarily known for its iron ore mining operations, this investment marks a significant shift towards sustainable energy solutions.

Such a substantial financial commitment from a major corporation not only provides the startup with the necessary capital for research, development, and production scaling but also serves as a powerful endorsement of the potential of their technology.

In addition to its substantial investment, Fortescue has also entered into a momentous 1 GW supply deal. This agreement signifies that Fortescue will purchase 1 gigawatt of green hydrogen produced by the startup’s electrolysers. This is a considerable amount of clean energy and underlines the corporate world’s growing appetite for sustainable solutions.

The 1 GW supply deal has the potential to supply clean energy to a variety of sectors, including heavy industry, transportation, and electricity generation. It also demonstrates the scalability and commercial viability of green hydrogen.

Quotes attributable to:

Fortescue Energy CEO, Mark Hutchinson, said, “Fortescue is committed and focused on supporting the rapid scaling of green technology to help heavy industry decarbonise and producing green hydrogen at scale is integral to that. Right now there are not enough electrolysers in the world to support the amount of green hydrogen we are set to produce. That is why we are partnering with other world leaders in this space to secure our green energy supply chain, and we’re excited to invest and secure capacity with Electric Hydrogen to help us achieve our goals.”

“Electric Hydrogen, just like Fortescue, is working at the speed and scale necessary to help deliver green hydrogen projects around the world and stop the need for fossil fuels. We are looking forward to working together.”

EH2 Chief Executive Officer and Co-founder, Raffi Garabedian, said, “Electric Hydrogen and Fortescue share an ambition to achieve large scale, low-cost production of green hydrogen globally as soon as possible.  We want to make fossil-free hydrogen an economic inevitability for fertiliser producers, steelmakers, chemical companies and other critical industries that have no other option to decarbonise.”

“Our team is excited to begin building and commissioning our leading electrolyser technology at Fortescue project sites to deliver on that commitment”.

What is green hydrogen and why is it important?

What is green hydrogen and why is it important?
Image: GeoPura

 

Green hydrogen is produced using renewable energy sources like solar and wind power. It is a clean and sustainable fuel that can decarbonise many industries, including transportation, power generation and manufacturing.

Green hydrogen is becoming increasingly important as the world transitions to a clean energy economy. It is a key part of many countries’ plans to meet their climate goals.

How does EH2's technology work?

EH2’s electrolysers use proton exchange membrane (PEM) electrolysis to produce green hydrogen. PEM electrolysis is a highly efficient process that uses electricity to split water molecules into hydrogen and oxygen.

EH2’s electrolysers are also very durable and have a long lifespan. This makes them ideal for use in commercial and industrial applications.

How does EH2's technology work?
EH2: The Prototype Plant's electrolyser stack is inspected to ensure it operates properly.

How Electric Hydrogen is making green hydrogen more affordable?

EH2 makes green hydrogen more affordable by developing and manufacturing the world’s most powerful and efficient electrolysers. Electrolysers use renewable electricity to split water into hydrogen and oxygen.

EH2’s electrolysers can produce more green hydrogen per unit of electricity than any other electrolysers on the market. This means that EH2’s systems can produce green hydrogen at a lower cost than other systems.

Why is EH2's funding round significant?

EH2’s Series C funding round is significant for several reasons. 

  • It is the largest funding round ever raised by a hydrogen technology company. 
  • It includes some strategic investors, such as bp Ventures, United Airlines and Microsoft. This shows a strong demand for EH2’s technology from the public and private sectors.
  • EH2’s valuation of $1 billion makes it the first hydrogen unicorn. This is a major milestone for the hydrogen industry, and it shows that investors are confident in the future of green hydrogen.

 

Source &Images: Fortescue News and Media, Electric Hydrogen (EH2) Linkedln & Media

Fortescue invests in electrolyser manufacturer Electric Hydrogen (EH2) to decarbonise heavy industry and achieve net zero

Fortescue and EH2 aim to achieve large scale, low-cost production of green hydrogen globally. The two companies believe green hydrogen is essential to decarbonising the heavy industry sector and achieving net zero emissions by 2050.

EH2’s $380M Series C funding round is a major vote of confidence in the company’s technology and its ability to transform the economics of green hydrogen production. The funding will allow EH2 to accelerate its manufacturing and deployment plans, and to expand its product portfolio to meet the growing demand for green hydrogen from a wide range of industries.

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