Advanced electrolyzer manufacturer Electric Hydrogen announced the acquisition of hydrogen project developer Ambient Fuels, as well as the launch of a new strategic relationship with sustainable infrastructure investor Generate Capital, creating a full-service hydrogen project development and financing platform.
According to Electric Hydrogen, the new acquisition and partnership come as rising demand for clean hydrogen in both the U.S. and EU is accelerating the market for hydrogen technology. Hydrogen is viewed as one of the key building blocks of the transition to a cleaner energy future, particularly for sectors with difficult to abate emissions, in which renewable energy solutions such as wind or solar are less practical, such as metals manufacturing and heavy transport.
Founded in 2020, Massachusetts-based Electric Hydrogen manufactures powerful electrolyzers that produce green hydrogen from renewable electricity and water, aimed at enabling developers to build large-scale clean hydrogen projects at low cost. The company’s productized hydrogen plant, “HYPRPlant,” utilizes proprietary high-power proton exchange membrane (PEM) electrolyzer technology to deliver made with renewable energy, with installed project costs reduced by as much as 60%.
Founded in 2021, New York-based Ambient Fuels delivers custom-engineered solutions for green hydrogen projects aimed at supporting the decarbonization of heavy industry and transportation, with services from project development and design to financing and construction.
Jacob Susman, former CEO of Ambient Fuels – and now leading project development at Electric Hydrogen – said:
“With this unique project finance capability from Generate Capital, our team is well positioned to support Electric Hydrogen customers who prefer to buy renewable hydrogen as a process input rather than building and operating their own renewable hydrogen plants. We believe this is a key ‘unlock’ for the nascent renewable hydrogen and renewable fuels industries that will help customers get to scale faster, enabled by Electric Hydrogen’s leading technology.”
Generate Capital announced an investment in Ambient Fuels in 2023, with a commitment of up to $250 million to fund green hydrogen infrastructure.
Under the new strategic relationship, Generate Capital will offer up to $400 million in hydrogen project finance solutions globally.
Scott Gosselink, Managing Director at Generate Capital, said:
“Generate Capital is determined to accelerate the transition to low-carbon molecules by offering leading project finance capabilities in close collaboration with skilled developers and innovative technologies. Working with Electric Hydrogen, we can help solve current finance and bankability challenges and reduce LCOH, enabling more hydrogen projects to reach Final Investment Decision.”
According to Electric Hydrogen, its combination with Ambient Fuels, and the new financing collaboration with Generate Capital will enable the company to substantially reduce the levelized cost of hydrogen as a service, and provide the capability to originate, buy and sell large-scale clean hydrogen projects.
Raffi Garabedian, CEO and Co-founder of Electric Hydrogen, said:
“We believe this new integration will both enable the industry to scale faster and give Electric Hydrogen even more ways to serve our diverse array of customers – from those who want to do it all themselves, from power procurement all the way to the finished clean-fuel – to those who prefer a partner to finance and develop the hydrogen plant so they can remain focused on their business outcomes.”
