Electric Hydrogen (EH2) announced the successful completion of a $380 million Series C financing. The new capital will accelerate the company’s production and deployment plans to meet strong customer demand for power-dense green hydrogen systems. The financing round was led by Fortescue, Fifth Wall and Energy Impact Partners. New investors included bp Ventures, Oman Investment Authority, Temasek, Microsoft Climate Innovation Fund, United Airlines Sustainable Flight Fund, New Legacy, Kajima Ventures and Fatima Holdings USA. In addition to existing strategic investors Amazon’s Climate Pledge Fund, Equinor Ventures, Mitsubishi Heavy Industries and Rio Tinto, previous financial investors Breakthrough Energy Ventures, Capricorn Partners, Prelude Ventures and S2G Ventures continued their participation.
We are grateful for the continued faith and encouragement of our previous investors and are excited to work with our new strategic and financial company. We need to grow as fast as possible to bring investors the technology that can change the world.
Derek Warnick, Chief Financial Officer of EH2
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EH2 Helps Customers Meet Decarbonisation Targets
We are here to replace natural gas and coal with renewable green hydrogen. In order to tackle the global climate challenge, we need new technologies to help critical industries reduce their emissions. Electric Hydrogen’s 100 MW electrolyser systems do just that. Today’s hydrogen comes from natural gas and coal. It also accounts for around 2.5 per cent of global carbon emissions. Because renewable green hydrogen is too expensive to produce at scale, no viable solution to this problem has been found. The Electric Hydrogen team is changing that, and the opportunities for decarbonisation go far beyond current practices.
Raffi Garabedian, Chief Executive Officer and Co-Founder of EH2
EH2’s electrolyser systems produce renewable electricity and green hydrogen from water. Green hydrogen is needed to decarbonise vital industrial processes such as fertiliser production, steelmaking, basic chemicals and others. Until now, switching from fossil-based sources to renewable green hydrogen has been too costly to be implemented on a large scale. In order to help its customers achieve their decarbonisation goals, EH2 manufactures 100 megawatt (MW) electrolyser systems, each capable of producing around 50 tonnes of green hydrogen per day at a transformational low cost.
The company is currently installing production equipment at its 1.2GW plant in Devens, Massachusetts. The plant will begin producing commercial electrolyser systems in early 2024. It will also be delivered with deliveries later in the year, including the first customer on-site electrolyser plant to be built in Texas for New Fortress Energy. Electric Hydrogen has more than 5 gigawatts (GW) of electrolysis systems reserved by customers and anticipates continued strong demand.
We have reinvented electrolyser technology to make it more efficient and much more cost-effective. We are now scaling rapidly to manufacture and assemble large electrolyser systems for our industrial customers leading the transition from grey hydrogen to renewable green hydrogen. We are driven by our mission to achieve fossil fuel parity for green hydrogen, and this new round of financing gives us everything we need to fulfil the promise of our technology.
Dave Eaglesham, EH2’s Chief Technology Officer