One hydrogen startup – Electric Hydrogen (EH2) has just become the first green hydrogen unicorn with a valuation of up to $1 billion. The Massachusetts-based company founded in 2020, announced on October 3rd the successful completion of an oversubscribed $380 million Series C funding round.
The round brings EH2’s total funding to roughly $600 million. The new capital will accelerate the manufacturing and deployment plans of Electric Hydrogen to meet strong customer demand for its power-dense electrolyzer systems that produce green hydrogen.
The funding round was led by Fortescue, Fifth Wall and Energy Impact Partners and included new investors 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.
Notable venture funds like Amazon’s Climate Pledge Fund, Equinor Ventures, Mitsubishi Heavy Industries, Rio Tinto, Breakthrough Energy Ventures, Capricorn Partners, Prelude Ventures, and S2G Ventures are current strategic investors who continued their participation.
Electric Hydrogen manufactures 100 MW electrolysis systems, including innovative electrolysis stacks with record-breaking efficiency. The modular plant architecture significantly reduces on-site construction costs and complexity. Each 100-megawatt electrolyzer system is capable of producing nearly 50 tons of green hydrogen per day and according to the company, at a transformational low cost.
It has attracted huge investors’ interest due to the success of the technology in producing low cost green hydrogen.
“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 who are leading the shift from grey hydrogen to renewable green hydrogen… We’re driven by our mission to achieve fossil fuel parity for green hydrogen, and this new round of financing gives us everything we need to deliver on the promise of our technology”, commented Dave Eaglesham, Chief Technology Officer of EH2.
The company has more than 5 gigawatts (GW) of its electrolysis systems reserved by customers so far and anticipates strong ongoing demand. It is now installing manufacturing equipment in its 1.2GW factory in Devens, Massachusetts that will begin producing commercial electrolyzer systems in early 2024.
“We’re grateful for the continued faith and encouragement of our previous investors and we’re excited to work with our new strategic and financial investors to grow as fast as we can to deliver technology that can change the world,” also commented on the funding round Derek Warnick, Chief Financial Officer of EH2.