Fortescue has announced that it is a lead investor in a $US 380 million Series C funding round for US-based manufacturer Electric Hydrogen (EH2), and has committed to buy a gigawatt worth of the company’s electrolysers.
EH2 was founded in late-2020 and according to its website will ship its first 100 megawatt unit next year. The Series C round – which also featured Fifth Wall and Energy Impact Partners as lead investors – makes it the first green hydrogen startup valued at $US 1 billion, reports Reuters.
It has raised over $US 600 million in venture funding so far, including from Amazon and Honeywell.
Fortescue said its investment was completed in June this year.
Fortescue plans to make its own polymer electrolyte membrane (PEM) electrolysers, and said it had built a successful prototype in April this year.
“Right now there are not enough electrolysers in the world to support the amount of green hydrogen we are set to produce,” said Fortescue Energy CEO Mark Hutchinson in a statement on Wednesday.
“That is why we are partnering with other world leaders in this space to secure our green energy supply chain, and we’re excited to invest and secure capacity with Electric Hydrogen to help us achieve our goals.”
According to EH2, its 100 megawatt electrolyser systems can produce almost 50 tons of hydrogen per day from renewable electricity and water “at transformational low cost.”
The company is currently establishing its first factory in Devens, Massachusetts, which it says will have an annual manufacturing capacity of 1.2 gigawatts’ worth of electrolysers. Production is planned to begin in Q1 2024.
Picture: credit Electric Hydrogen