Electric Hydrogen (EH2) has announced the successful completion of an oversubscribed $380 million Series C financing round. This injection of capital is set to propel the company's manufacturing and deployment efforts, meeting the surging demand for its power-dense green hydrogen systems.
The Series C funding round was spearheaded by notable investors, including Fortescue, Fifth Wall, and Energy Impact Partners. Joining them were new contributors like bp Ventures, Oman Investment Authority, Temasek, Microsoft's Climate Innovation Fund, the United Airlines Sustainable Flight Fund, New Legacy, Kajima Ventures, and Fatima Holdings USA. Notably, existing strategic investors such as Amazon's Climate Pledge Fund, Equinor Ventures, Mitsubishi Heavy Industries, and Rio Tinto, as well as previous financial investors, maintained their support.
EH2 is at the forefront of the green hydrogen revolution, harnessing electrolyzer systems that produce green hydrogen from renewable electricity and water. This advancement is pivotal for decarbonizing vital industrial processes, including fertilizer production, steelmaking, and base chemicals manufacturing. Until now, transitioning from fossil-based sources to renewable green hydrogen has remained economically challenging. EH2, however, is poised to change that narrative by manufacturing and delivering 100 megawatt (MW) electrolyzer systems, each capable of producing nearly 50 tons of green hydrogen per day at a transformationally low cost. This will empower EH2's customers to make significant strides toward their decarbonization objectives.
Raffi Garabedian, Chief Executive Officer and Co-founder of EH2, emphasized the company's mission, stating, “We're here to replace natural gas and coal with renewable green hydrogen. To address the global climate challenge, we need new technologies that help critical industries reduce their emissions. Electric Hydrogen's 100MW electrolyzer systems do just that.” Currently, hydrogen production from natural gas and coal contributes to approximately 2.5% of global carbon emissions, highlighting the urgency of transitioning to greener alternatives.
EH2 is actively preparing its 1.2GW factory in Devens, Massachusetts, for production, with plans to commence manufacturing commercial electrolyzer systems in early 2024. The company has already secured more than 5 gigawatts (GW) of its electrolysis systems through reservations, indicating strong ongoing demand.
Fortescue, a global metals and green energy company, serves both as a lead investor and a potential customer. Mark Hutchinson, Fortescue Energy CEO, underscored their commitment to green technology, stating, “Electric Hydrogen, just like Fortescue, is working at the speed and scale necessary to help deliver green-hydrogen projects around the world.”
Gareth Burns, Vice President of bp Ventures, emphasized the importance of EH2's technology in advancing green hydrogen production, aligning with their global hydrogen portfolio and net-zero ambition. United Airlines Ventures President, Michael Leskinen, noted the potential of EH2's novel electrolyzers to reduce the capital cost of hydrogen production, a crucial factor in the production of Sustainable Aviation Fuel.
Dave Eaglesham, Chief Technology Officer of EH2, explained their mission to achieve fossil fuel parity for green hydrogen, stating, “We've re-invented electrolyzer technology to make it more efficient and far lower cost. Now we're scaling up rapidly to produce and assemble large electrolyzer systems for our industrial customers.”
Derek Warnick, Chief Financial Officer of EH2, expressed gratitude for the broad and diverse investor syndicate assembled, highlighting the company's commitment to driving transformative change through their technology.
