With governments around the world placing massive bets that hydrogen is the answer to slashing greenhouse gas emissions globally, new technology companies are racing to find ways to cut the costs of its production.
The U.S. government alone is placing a $26 billion bet that hydrogen could be the answer to most of the world's climate woes and that multi-billion bet is just the tip of the iceberg when it comes to spending.
The question remains how to make it more cheaply... and an answer may come in the form of technology from Ohmium International.
The Bay Area-based company has developed a new kind of electrolyzer that turns water into hydrogen gas that can be used as fuel for industrial processes or to power ships and planes that where battery-powered systems are impractical.
The company is working with Shell India (a subsidiary of the big oil major) on developing green hydrogen hubs and is already contracting with U.S. based project developers on ways to replace natural gas in existing power plants.
Last November, Ohmium inked a deal with NovoHydrogen to provide 120 megawatts of green hydrogen -- enough to power at least 48,000 homes -- to a power producer in New Jersey.
The contract will replace a portion of the gas usage at a peaking power plant.
"Green hydrogen offers a tremendous opportunity to utilize current gas-powered energy generating assets to provide 100% 24/7 dispatchable clean power. We are tremendously excited to work on this innovative project to show what can be done," said Matt McMonagle, NovoHydrogen's CEO, in a statement when the deal was announced.
"Ohmium's leading edge, modular, cost-effective PEM electrolyzers provide us with the perfect scalable solution for green hydrogen applications. We can expand capacity over time as the projects progress," McMonagle said.
Now, with another $250 million in the bank thanks to an investment from TPG Rise Climate, Ohmium is set to move forward with production of its new system for making hydrogen without greenhouse gas emissions.
“Ohmium’s cutting-edge PEM electrolyzer systems are crucial to enabling the green hydrogen industry, satisfying a wide range of commercial applications and delivering superior value in terms of current density, scalability, ramp rate, and safety,” said Ed Beckley, Partner at TPG and senior member of the TPG Rise Climate investing team. “At a time when the market lacks sufficient reliable supply of electrolyzers, we are pleased to lead the company’s latest funding round and partner with the team to scale its delivery capability.”