In order to scale up its electrolyzer technology and demonstration projects to manufacture green hydrogen and help the decarbonization of international sectors, climate technology company Electric Hydrogen (EH2) announced today that it has secured $198 million in a fundraising round.
Fifth Wall Climate Tech oversaw the fundraising, with help from S2G Ventures, Silicon Valley Bank, and lenders Trinity Capital.
Partner of Fifth Wall and Co-Leader of the Climate Investment team, Peter Gajdo, stated: “This round is more than just an investment in a business. The critical task of decarbonizing difficult-to-decarbonize industries that are both crucial to contemporary life and significant producers of GHG emissions has just taken the largest stride forward. We’ve been looking for the most promising solutions to that problem, and EH2 provides one.
Technology for low-cost, highly effective, fossil-free hydrogen systems is being developed by EH2. The company’s high throughput electrolyzer technology runs entirely on clean energy and intends to deliver the high volume, low-cost hydrogen generation needed to support large industrial activities.
Especially for industries with hard-to-reduce emissions, where renewable energy options like wind or solar are less viable, hydrogen is seen as one of the important building blocks of the transition to a cleaner energy future. Massive expenditures will be needed in areas like infrastructure, electrolysis, and transportation to generate clean hydrogen capacity, such as green hydrogen, which uses renewable energy to fuel the process to extract hydrogen from other materials.
The financing’s proceeds will be applied to the manufacturing and deployment of demonstration projects, the scaling up of the high throughput electrolyzer technology, and the mass production of hydrogen that is produced without the use of fossil fuels.
Electric Hydrogen’s CEO, Raffi Garabedian, said: “We’ve established an incredible team, proved our key enabling technology, and now have the funding we require to disseminate our technology and begin reducing emissions. The involvement of key partners at the vanguard of the sectors we intend to decarbonize—such as energy, mining, logistics, and heavy manufacturing, to mention a few—provides crucial knowledge that will expedite and speed up our road to market. This is equally critical.
Along with Breakthrough Energy Ventures, Capricorn Partners, Energy Impact Partners, and Prelude Ventures, additional investors in the fundraising round included Amazon’s Climate Pledge Fund, Cosan, Equinor Ventures, Honeywell, Mitsubishi Heavy Industries, and Rio Tinto.
Vice President for Global Sustainability at Amazon, Kara Hurst, stated: “Amazon has a goal to reach net-zero carbon by 2040 through our adherence to The Climate Pledge. We are honored to assist Electric Hydrogen in scaling up the green hydrogen economy and addressing the decarbonization requirements of challenging decarbonized industries like freight and ocean shipping.