Modern Energy has pledged a substantial $20 million equity commitment to NovoHydrogen, a Colorado-based green hydrogen developer poised to revolutionize North America’s approach to clean energy.
While the global hydrogen industry is substantial, with 95 million metric tons of hydrogen demanded in 2022, a staggering 95% of this hydrogen is still produced using fossil fuels like natural gas and coal, resulting in energy- and emissions-intensive processes that hinder decarbonization efforts.
NovoHydrogen, founded by Matt McMonagle in 2021, is dedicated to developing onsite and near-site green hydrogen projects across various sectors. This injection of capital from Modern Energy will empower NovoHydrogen to expand its team and drive its development portfolio of green hydrogen projects towards final investment decisions and eventual construction.
Chris Hamilton, Chief Investment Officer at Modern Energy, lauded NovoHydrogen’s strategic approach and its potential to lead the green hydrogen industry forward. Green hydrogen, produced through electrolysis with clean energy, promises a versatile, storable, and transportable fuel without greenhouse gas emissions. Its applications extend to vital sectors such as heavy industry, dispatchable power, and transportation, making it a linchpin in the ongoing energy transition.
In the United States, substantial regulatory support for green hydrogen is evident, with incentives like the Inflation Reduction Act’s Production Tax Credit and the Infrastructure Investment and Jobs Act’s funding for clean hydrogen hub development. As a member of the Pacific Northwest Hydrogen Hub, NovoHydrogen is actively contributing to the development of this site, further underlining its commitment to the green hydrogen revolution.
Matt McMonagle, CEO of NovoHydrogen, emphasized the company’s quest for a partner who shared their vision of deploying distributed green hydrogen infrastructure and could help accelerate their growth. Modern Energy fits this description and will provide essential support as NovoHydrogen scales its key functions like project development and finance. This partnership represents a significant step towards a greener and more sustainable future, with green hydrogen emerging as a vital player in the global effort to transition to cleaner energy sources.