Verdagy, a green hydrogen company, has received funding from TDK Ventures to help accelerate the development and commercialization of their scalable, low-cost approach to hydrogen electrolysis.
Verdagy is focused on the large-scale generation of green hydrogen essential for thorough decarbonization of a wide range of sectors, having just completed their spin-off from green chemical business Chemetry. TDK Ventures is continuing its focus on clean and green technologies with this investment. TDK Ventures is excited to provide network and industry exposure, expertise in the energy sector, and rapid commercialization to help Verdagy bring its technology to market more quickly.
Steam-methane reforming (SMR), which produces CO2 as a byproduct, accounts for more than 90% of hydrogen generation. Electrolysis is a game-changing technique that generates high-energy-content hydrogen gas from renewable energy sources such as solar, wind, hydropower, and more, allowing for carbon-free energy generation.
The advantages of alkaline electrolysis (AWE) and proton-exchange membrane (PEM) are combined in Verdagy’s new approach to large-scale water electrolysis, while their inherent shortcomings are designed out. Verdagy developed a new membrane-based electrolysis approach that uses very large active area cells with industry-leading high current densities and wide dynamic operating ranges. This method allows for cheap capital and operational expenses, and it is predicted to achieve or surpass the US Department of Energy’s water electrolysis objectives.
CEO Marty Neese said in a statement following the investment: “Winning the trust of such a distinguished collection of thought-leader investors is extremely satisfying and encouraging. It speaks volumes about the Verdagy team’s efforts to demonstrate our low capex and low opex green hydrogen electrolysis approach. On the path to decarbonizing diverse industrial sectors, we look forward to working with our investor partners even more closely.” Neese is a seasoned pro in the fields of hydrogen and green sustainability. He co-founded Nuvosil, a solid-state silicon recycling firm, is now on the board of Ballard Power Systems, an industry authority in PEM, and served as COO of SunPower and Flex prior to becoming CEO of Verdagy.
“We are honored to lead this round of investing in Verdagy, as we see this company genuinely expanding with TDK’s objective of environmental change,” stated Nicolas Sauvage, President, TDK Ventures. “We put up a terrific syndicate, with each investor adding value over and above the cash they put into Verdagy, enhancing our TDK Goodness. We’re pleased to work with Verdagy and contribute to the realization of our shared goal of a more sustainable future.”
Khosla Ventures, Shell Ventures, Doral Energy Tech Ventures, Temasek, BHP Ventures, and Orbia Ventures are among the other $25 million investors in this oversubscribed round. Verdagy will use this funding to rapidly develop its first commercial 10-cell stack at 2MW capacity, with the goal of delivering their first 20MW “eDynamicTM” electrolyzer in the near future. Verdagy’s product roadmap also includes industrial-scale units with numerous electrolyzers.
“At Khosla Ventures, we invest in early-stage, ambitious, and influential companies like Verdagy,” stated Vinod Khosla, the firm’s founder. “Since we originally invested in their seed round a year ago, Verdagy has made remarkable progress toward its aim of delivering the lowest-cost green hydrogen. We’re looking forward to continuing on this path with the organization in order to help it achieve its aim of decarbonizing industrial sectors throughout the world.”
Doral Energy-Tech Ventures’ Managing Director Roee Furman added: “Doral, as a worldwide renewable energy producer, sees a day in the not-too-distant future when we will not only be supplying electrons to the grid, but also molecules in the form of green hydrogen. From decarbonizing numerous sectors to long-duration seasonal storage, Verdagy’s innovative electrolysis technology acts as a catalyst for the energy revolution and achieving net-zero. Verdagy is in a great position to deliver to the market an Electrolyzer with high current densities and unequaled CAPEX and OPEX, thanks to strong leadership, outstanding scientific advancements, and a spectacular team of investors from all sectors and continents.”
“We think that green hydrogen, at the correct scale and cost, will be critical in decarbonizing the industrial processes of steel, aluminum, cement, and chemicals,” said Orbia CEO Sameer Bharadwaj. “Green hydrogen may also be utilized to produce additional chemical feedstocks and liquid fuels for marine and aviation applications when combined with harvested CO2. With its competence in fundamental and advanced materials, large-scale chemical processes, and a focus on decarbonization technologies, Orbia expects to contribute to Verdagy’s success.”
