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Electric Hydrogen raises $380m

The Massachusetts-based electrolyzer maker has completed a Series C funding round to accelerate manufacturing and deployment.

Electric Hydrogen has completed an oversubscribed $38m Series C financing.

The new capital will accelerate the company’s manufacturing and deployment plans to meet strong customer demand for its power-dense green hydrogen systems, according to a news release.

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. Existing strategic investors Amazon’s Climate Pledge Fund, Equinor Ventures, Mitsubishi Heavy Industries, and Rio Tinto continued their participation, as did previous financial investors Breakthrough Energy Ventures, Capricorn Partners, Prelude Ventures, and S2G Ventures.

EH2 has raised over $600 million since its founding in 2020. In a separate release, Fortescue said it had signed a framework procurement agreement to supply 1 GW of EH2’s electrolyzer systems to Fortescue’s green hydrogen projects in the US and globally.

EH2’s electrolyzer systems produce green hydrogen from renewable electricity and water. Green hydrogen is needed for decarbonizing vital industrial processes such as fertilizer production, steelmaking, base chemicals and many others. Until now, switching from fossil-based sources to renewable green hydrogen has been too costly to be implemented at scale. EH2 is manufacturing and plans to deliver and commission 100 MW electrolyzer systems, each capable of producing nearly 50 tons of green hydrogen per day at transformational low cost to help its customers meet their decarbonization goals.

“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 that”, said Raffi Garabedian, Chief Executive Officer and Co-founder of EH2. “Today’s hydrogen comes from natural gas and coal and accounts for around 2.5% of global carbon emissions. There has not been a viable solution to this problem because renewable green hydrogen has been too expensive to produce at scale. The Electric Hydrogen team is changing that and the opportunities for decarbonization go far beyond today’s applications”.

The company is currently installing manufacturing equipment in its 1.2 GW factory in Devens, Massachusetts. The factory will begin producing commercial electrolyzer systems in early 2024, with deliveries later in the year including the first customer-sited electrolyzer plant to be installed in Texas for New Fortress Energy. Electric Hydrogen has more than 5 gigawatts (GW) of its electrolysis systems reserved by customers and anticipates strong ongoing demand.

Fortescue, a global metals and green energy company, is both a lead investor and potential customer, having also signed a procurement agreement with EH2. “Fortescue is committed and focused on supporting the creation of green technology to help heavy industry decarbonize and producing green hydrogen at scale globally is integral to that”, said Mark Hutchinson, Fortescue Energy CEO. “Electric Hydrogen, just like Fortescue, is working at the speed and scale necessary to help deliver green-hydrogen projects around the world”.

“bp Ventures invests in game-changing and innovative technology across bp’s transition growth engines and in the energy the world needs today, said Gareth Burns, Vice President of bp Ventures. “Electric Hydrogen’s 100MW green hydrogen systems use advanced technology that could significantly reduce production costs. Investing in technologies that could help to advance green hydrogen production is crucial as we progress our global hydrogen portfolio and work towards our net zero ambition.”

“Scalable and cost competitive access to green hydrogen is key to the production of Sustainable Aviation Fuel – for United and others that seek a transition to clean energy. Electric Hydrogen’s novel electrolyzers have the potential to greatly reduce the capital cost of hydrogen production and their electrolyzers can be powered by a variety of renewable power sources,” said United Airlines Ventures President, Michael Leskinen. “United’s need for sustainable aviation will require scaling the supply of green hydrogen, and we believe Electric Hydrogen’s technology could be game changing.”

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Renewables developer snaps up wind, solar, and ammonia projects

Chicago-based Nova Clean Energy has acquired HyFuels, a portfolio of wind and solar development projects as well as an early stage green ammonia project.

Nova Clean Energy has acquired HyFuels, a more than 1 GW portfolio of mid-to-late-stage wind and solar development projects as well as an earlier stage green ammonia project.

Located on the Texas Gulf Coast, an area of rapidly increasing power demand and a leading center for American-produced ammonia, HyFuels is ideally situated to serve the petrochemical industry, ensuring Texas remains the global leader in this essential industry, according to a press release.

HyFuels, which has a current project footprint of about 25,000 acres, has a power supply that is split evenly between wind and solar, whose complementary generation profiles will ensure a steady supply of clean local power. The first phase of the project is expected to reach Full Notice to Proceed (NTP) in 2025 and Commercial Operations in 2026.

The parties did not use financial or legal advisors for the sale given their pre-existing relationship, a spokesperson for Bluestar Energy Capital, the backer of Nova, said in an email.

“Once the projects are built, they represent over $1.5 billion in CAPEX for the wind and solar sections alone,” the spokesperson added, noting that Bluestar provided financing for the acquisition. He declined to comment further.

HyFuels previously outlined its projects in filings with the Texas comptroller. The Big Spring project would be located eight miles west of Big Spring, Texas, along Interstate 20. Once operating, it would produce an estimated 400,000 tons of carbon-free hydrogen each year (about 1,100 tons per day), the company had said.

Meanwhile, its Green Lake project was described similarly in filings.

Nova acquired HyFuels from BNB Renewable Energy, a developer with a nearly 20-year track record of developing wind and solar projects across the United States and in Mexico, including for a range of industrial clients. Nova has entered into a long-term development services agreement with BNB, which originated the development in late 2020, ensuring full alignment on the successful delivery of the HyFuels project.

Since initially partnering in mid-2023, Nova and BNB have worked to advance the HyFuels complex, including completing necessary environmental surveys, securing a workable schedule for connection to the power grid, and ordering long lead-time equipment.

Commenting on the announcement, Ben Pratt, President of Nova Clean Energy, said, “The Texas grid is going to continue to need a variety of power sources to serve its fast-growing demand. Wind paired with solar provides a generation profile that industrial as well as utility customers increasingly want to see. We are excited to work with BNB on this important portfolio.”

Commenting on the announcement, Jos Nicholas, CEO of BNB, said, “Together, we and Nova look forward to working with and learning from this community in Calhoun and Victoria counties in order to bring low-cost electricity and green ammonia to this amazingly productive part of Texas and our nation’s economy.”

Since its formation in 2022, Nova has grown rapidly across wind, solar and battery storage. Nova’s project pipeline is positioned to benefit from 3 core themes: expansion and strengthening of transmission networks, new end-customer demand in areas like mobility, green fuels and AI, as well as growing build-transfer opportunities driven by increased utility ownership. With a project pipeline that now exceeds 5 GW of projects in 8 states and multiple power markets (including WECC, MISO & ERCOT), and with marked acceleration in each of its core development themes, Nova is positioned for rapid future growth.

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8 Rivers appoints new CEO

8 Rivers Capital appoints Christopher Richardson to CEO position from law firm White & Case.

8 Rivers Capital, LLC, a decarbonization technology developer, has appointed Christopher F. Richardson as the firm’s new Chief Executive Officer, according to a news release.

He succeeds Dharmesh Patel, who has served for six months as interim CEO and previously served as Vice President and Financial Controller. Patel will ascend to the new position of Senior Vice President of Finance, effective immediately.

Richardson joins 8 Rivers with over 20 years of experience in energy and infrastructure transactions and projects and previously served as the head of the Americas energy and infrastructure projects section at the global law firm White & Case. He was based in the firm’s Houston office, which he established in 2018 as a founding partner.

In this role, Richardson led and managed a team of over 100 lawyers across eight offices in the Americas. Richardson’s expertise on developing, financing, and executing large-scale energy and infrastructure projects and related transactions spans the U.S. and more than 50 countries worldwide.

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Advent Technologies in maritime JDA with Siemens

The pair will develop an integrated high-temperature PEM fuel cell solution for maritime applications and then evaluate to scale down/up the system to fit with market requirements from motor and Giga Yachts to ferries and container/commercial ships.

Advent Technologies Holdings, Inc., a provider of fuel cell and hydrogen technology, through its wholly owned subsidiary, Advent Technologies A/S, has signed a Joint Development Agreement with Siemens Energy, one of the world’s leading energy technology companies.

The newly signed JDA outlines the collaboration between Advent and Siemens Energy, combining Advent’s HT-PEM fuel cell 50kW modules utilizing its innovative Ion-Pair™ membrane electrode assembly (MEA) technology with Siemens Energy’s electrification and automation solutions for hybrid and electric vessels.

The goal is to develop an integrated 500kW High-Temperature Proton Exchange Membrane (“HT-PEM”) fuel cell solution for maritime applications and then evaluate to scale down/up the system to fit with market requirements from motor and Giga Yachts to ferries and container/commercial ships.

The innovative clean energy solution resulting from this multi-year collaboration is expected to initially address the power needs of large yachts, according to a press release. Subsequently, plans are underway to broaden its application to include ferries and commercial/container vessels.

The initial prototype testing for the HT-PEM fuel cell module is expected to take place at Siemens Energy’s testing facility in Erlangen, Germany, in 2025, with the testing of the first fuel cell module scheduled for completion in 2026. Advent is currently engaging with world-leading customers in the maritime industry and anticipates signing commercial term sheets in the near term to pursue upcoming Requests for Proposals (RFPs).

This agreement builds upon the strong collaboration between Advent and Siemens Energy, which began in February 2022 with the Sanlorenzo Life Ocean pilot project. In this project, the companies jointly developed a marine HT-PEM fuel cell solution to provide clean power for hotel functions aboard a 50-meter Sanlorenzo superyacht. Additionally, in March 2024, Advent and Siemens Energy deepened their collaboration by joining as consortium partners in the RiverCell 3 research and development project, which is partially funded by the German Federal Ministry for Digital and Transport as part of the National Innovation Programme Hydrogen and Fuel Cell Technology.

Advent Technologies’ HT-PEM fuel cells utilizing the innovative Ion Pair™ MEA technology, offer high-temperature operation between 80°C and 240°C. This advancement extends their lifespan by at least threefold and doubles the power density compared to earlier Advent systems. Additionally, Advent’s HT-PEM fuel cell technology enables the use of liquid green fuels like eMethanol, enhancing efficiency by utilizing both heat and electricity, resulting in high resilience. These fuel cells can function with impure hydrogen, impure air intake, and in extreme ambient temperature and humidity conditions, making them an ideal choice for widespread adoption in the maritime industry.

As the world advances towards extensive green hydrogen production, eMethanol emerges as a leading choice for marine fuel in the maritime industry, promising a potential 100% reduction in CO2 emissions. Methanol and its derivatives function as versatile energy carriers and storage solutions, efficiently releasing hydrogen catalytically through fuel reformers. With its efficient storage capabilities, ease of handling, and utilization of existing infrastructure for transportation, methanol stands as a secure and economically viable alternative to fossil fuels.

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AEM electrolyzer startup conducting Series B capital raise

A maker of anion exchange membrane electrolyzers is undergoing a Series B capital raise.

Versogen, an electrolyzer startup, is conducting a Series B capital raise, with the aim of closing the round in the coming weeks, CFO Tim Krebs said in an interview.

The Delaware-based maker of anion exchange membrane electrolyzers is seeking to raise multiples of its Series A capital raise, Krebs said, which was a $14.5m round completed in May, 2022.

Proceeds from the Series B would allow the company to complete development of its AEM electrolyzer, a 1 MW modular hydrogen generation system, Krebs said. The company is not using a financial advisor.

The Series A funding round was led by Doosan Corporation and its affiliate HyAxiom. Other investors include The Chemours Company, TechEnergy Ventures, Wenstone H2Tech, TOP Ventures America, a CVC arm of Thai Oil Public Company Limited, DSC Investment and CN Innovations Investments Limited. 

Krebs, a former investment banker who has been the CFO of three energy technology companies, expects some existing investors will also participate in Versogen’s Series B round.

Versogen is led by co-founder and CEO Yushan Yan, an electrochemical engineer and inventor. The company touts a technology using low-cost construction materials like an alkaline electrolyzer but a more efficient production process akin to a membrane-based PEM electrolyzer.

Market dynamics

The capital raise is taking place amid a crowded field of electrolyzer startups looking to raise money in order to finalize designs and cement commercial opportunities.

Among others, Electric Hydrogen, a PEM electrolyzer startup, recently raised a $380m Series C; Verdagy raised a $73m Series B in August; and HyAxiom, a developer and manufacturer of fuel cell and electrolyzer solutions, completed a $150m private placement of convertible preferred stock in July.

At the same time, growth equity as well as Series A and Series B funding for climate tech dropped significantly through the first half of 2023.

Series A funding fell 36%, while Series B funding dropped 20% and growth equity investments fell by 64%, according to data from Climate Tech Venture Capital. Series C funding dropped by 72% in 1H23 compared to the same period last year, the same data shows.

Still, the market for electrolyzers is supported by undersupply as green hydrogen projects advance around the world.

James Bowe, a partner at King & Spalding who is advising on several large green hydrogen projects, said the three top manufacturers of electrolyzers are sold out for the next three to four years, potentially providing an opportunity for startups to fill the gap. Bowe made the comments yesterday during a panel at the Reuters North America Hydrogen conference in Houston.

Additionally, several catalysts for further electrolyzer demand are on the near-term horizon. The US Department of Energy is expected to announce the winners of up to $8bn in government funding for hydrogen hubs this week, while guidance from the IRS detailing rules to qualify for green hydrogen tax credits should be issued in the coming months.

Further clarity on government support for the hydrogen industry is expected to spur many projects toward final offtake arrangements and final investment decisions, experts say.

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Exclusive: Middle market flagship fund to target e-fuels, renewables

A new $1.5bn US-focused flagship fund focused on middle market companies is in discussions with new and existing LPs now and will consider e-fuels and other sustainable molecules in its deployment.

Energy Impact Partners, the New York-based investment firm, is in discussions with new and existing LPs to raise a $1.5bn flagship fund focused on the middle market, according to two sources familiar with the matter.

The raise is being done without a financial advisor, the sources said. Once complete, it will target platforms and assets in the $40m to $50m range.

While the fund will be broadly focused on renewables, e-fuels and other sustainable fuels companies will be considered, one of the sources said.

The investment manager has invested in clean fuels via equity positions in Electric Hydrogen, Terragia and Metafuels, among others.

EIP did not respond to requests for comment.

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Exclusive: E-fuels developer raising $500m

A developer of green hydrogen for e-fuel products is looking for a more diverse set of backers for a recently launched Series C capital raise.

Ineratec, the German power-to-liquid fuels developer and technology provider, has launched a $500m Series C and could take on a US-based financial advisor to help, CEO Tim Boeltken said in an interview.

German boutique Pava Partners helped Ineratec on its $129m Series B, which was led by Piva Capital. The Series B raise, which was announced in January, also included participation from HG Ventures, TDK Ventures, Copec WIND Ventures, RockCreek, Emerald, Samsung Ventures as well as the increased support from current investors, including global corporates like ENGIE New Ventures, Safran Corporate Ventures and Honda.

The Series C can include equity, debt and project finance, Boeltken said.

The company, which takes a modular approach to fuels production, serves customers in Switzerland, Spain and Finland. Its e-fuels process involves two main steps: first, turning CO2 and hydrogen into synthesis gas, then using a second reactor to turn the synthesis gas into liquid and solid hydrocarbons, according to its website.

Growth in the US would include eventual rollout of its 100 MW commercial unit, none of which have been built to date. Now the company is focused on its 10 MW commercial units, following completion of a 1 MW industrial plant operating now.

In the next month Ineratec will be scouting locations in the US, Boeltken said, adding the the company is “hoping for many, many US installations” with eyes on additional applications in South America and Japan. The company also intends to establish a US headquarters.

Sites in New York and California are of first interest but there are also growth intentions in Texas, Washington state and Appalachia.

Ineratec is currently raising project finance for a “triple-digit” million capex project in the Europe, he said.

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