Electric Hydrogen Secures $198 Million in Financing to Use Fossil-Free Hydrogen to Decarbonise Global Industries
Electric Hydrogen (EH2) announced a $198 million fundraising effort to produce cost-effective, fossil-free hydrogen. The round consisted of Series B equity and venture debt from top investors.
S2G Ventures, lenders Silicon Valley Bank and Trinity Capital, as well as Fifth Wall Climate Tech, took the lead in the financing.
Amazon's Climate Pledge Fund, Cosan, Equinor Ventures, Honeywell, Mitsubishi Heavy Industries, and Rio Tinto were among the strategic investors.
Previous investors—Prelude Ventures, Capricorn Partners, Energy Impact Partners, and Breakthrough Energy Ventures—also took part.
The funding will be used to scale up the high throughput electrolyzer technology developed by EH2, as well as to manufacture and implement demonstration projects for the mass production of fossil-free hydrogen, often known as "green hydrogen," for use in infrastructural and industrial applications.
A promising method for decarbonizing sectors that cannot be electrified, such as steel, fertiliser, and intercontinental energy transport, which are responsible for more than a third of the world's GHG emissions, is hydrogen production in areas with plentiful and clean electricity.
The unique electrolysis method used by EH2 is specifically created for the high-volume, low-cost production needed to support large-scale industrial activities. Electrolysis is the process of creating hydrogen from electricity and water. Their energy-efficient systems operate without a snag.
Raffi Garabedian, CEO of Electric Hydrogen, said:
"This funding round fuels the next phase of our evolution. We have demonstrated our enabling core technology, built an amazing team, and now have the capital we need to get our technology out into the world and start curbing emissions. Just as importantly, the participation of strategic partners at the forefront of the industries we are poised to decarbonize–energy, mining, logistics, and heavy manufacturing, to name a few–provides vital insight that will facilitate and accelerate our path to market.”
Source: Business Wire