Advanced Ionics, a company that specializes in next-generation industrial electrolyzers that can manufacture hydrogen for less than $1/kg, has announced the completion of a $4.2 million seed round sponsored by Clean Energy Ventures, a venture capital firm that focuses on early-stage climate tech technologies.
By using substantially less power than existing electrolyzers, Advanced Ionics can manufacture green hydrogen for less than the current cost of fossil fuel-derived hydrogen. This fresh capital will allow the firm to go forward with its product development strategy, scale-up, and undertake client pilot projects.
Heavy industry is one of the most carbon-intensive industries, accounting for 20% of global warming emissions. To meet this problem, Advanced Ionics offers a highly sustainable, low-cost option in critical countries such as Europe, where there is a desire to minimize reliance on natural gas for climatic and geopolitical reasons. The company’s Symbiotic Electrolyzer Technology was created to cut costs by integrating with current industrial facilities and processes.
Alkaline and membrane-based electrolyzers need a lot of power, often more than 50 kWh/kg. Advanced Ionics’ electrolyzers use onsite waste and process heat to save up to 40% on usual energy costs, which are the most expensive part of green hydrogen generation.
“As the most feasible strategy for decarbonizing heavy industry, the green hydrogen market is expected to develop at an amazing rate in the next decades,” said Daniel Goldman, Co-founder and Managing Partner of Clean Energy Ventures. “However, green hydrogen has not yet shown to be cost-effective or dependable enough to be widely used.” We supported Advanced Ionics after a five-year evaluation of the industry. We believe their leadership team can develop a highly competitive technology to manufacture the lowest-cost green hydrogen at scale. Our investment in Advanced Ionics is based on the same goal: to provide highly competitive and scalable decarbonization solutions to the most polluting sectors.”
Advanced Ionics is headquartered in the Midwest, a region known for its manufacturing and industrial heritage. According to IHS Markit estimates, the current levelized cost of green hydrogen produced through electrolysis is around $4-5/kg; Advanced Ionics claims that its electrolysis can provide clean hydrogen without the green premium for less than $1/kg in many industrial locations using Symbiotic steam electrolysis.
During the following year, the business will work with partners on a series of demonstration projects before moving to larger-scale projects and a large-scale electrolyzer production facility to service important markets including Europe and North America.
