Electric Hydrogen, a pioneering start-up backed by billionaire investor Bill Gates, has made significant strides in the green hydrogen industry by securing a agreement with a major US utility.
Under the framework reservation agreement, the US utility AES has committed to purchasing 1 gigawatt (GW) of Electric Hydrogen’s massive electrolysis systems. These systems, each with a capacity of 100 megawatts (MW), are poised to revolutionize the production of green hydrogen on a large scale. By reserving capacity at Electric Hydrogen’s gigafactory in Devens, Massachusetts, AES aims to secure a strategic foothold in the burgeoning green hydrogen market.
AES, in collaboration with Air Products, is spearheading a $4 billion green hydrogen project in northern Texas, leveraging wind, solar, and electrolyzer capacity to produce hydrogen at scale. The capacity reservation agreement with Electric Hydrogen will bolster AES’s efforts to offer cost-effective decarbonization solutions, particularly in hard-to-decarbonize sectors. Ashley Smith, Chief Innovation Officer at AES, underscores the importance of securing the supply chain as the company expands its green hydrogen business.
Electric Hydrogen’s cutting-edge electrolysis technology stands out for its scalability and efficiency. Unlike traditional electrolysis systems composed of smaller stacks, Electric Hydrogen’s 100MW turnkey electrolyzers are the largest in the world, offering unparalleled economies of scale. By ramping up production at its Devens gigafactory, Electric Hydrogen aims to drive down costs rapidly and accelerate the adoption of green hydrogen globally.
The agreement with AES follows previous deals with prominent players in the energy sector, including Australia’s Fortescue and US-based New Fortress Energy. These partnerships underscore the industry’s confidence in Electric Hydrogen’s technology and its potential to revolutionize hydrogen production. As demand for green hydrogen continues to soar, strategic collaborations will play a crucial role in driving innovation and scaling up production capacity.
