Climate technology startup Electric Hydrogen (EH2) announced today it has raised $198 million in a financing round aimed at enabling it to scale its electrolyzer technology and demonstration projects to produce green hydrogen, supporting the decarbonization of global industries.  

The financing was led by Fifth Wall Climate Tech, with participation from S2G Ventures and lenders Silicon Valley Bank and Trinity Capital.

Peter Gajdoš, Partner at Fifth Wall and Co-Lead of the Climate Investment team said:

“This round represents more than an investment in a company. It’s the biggest step yet toward meeting the urgent challenge of decarbonizing hard-to-decarbonize industries that are both essential to modern life and huge sources of GHG emissions. We’ve been searching for the most promising answers to that challenge and found one in EH2.”

EH2 is developing technology for low-cost, high-efficiency, fossil-free hydrogen systems. The company’s high throughput electrolyzer technology aims to provide the high-volume, low-cost production of hydrogen required to support massive industrial operations and operates on 100% clean energy.

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. The development of clean hydrogen capacity, such as green hydrogen, which uses renewable energy to power the process to extract hydrogen from other materials will require massive investments in areas including infrastructure, electrolysis, and transport.

Proceeds from the financing will be used to scale the high throughput electrolyzer technology, and the production and deployment of demonstration projects to produce fossil-free hydrogen at a large scale.

 Raffi Garabedian, CEO of Electric Hydrogen, said:

“We’ve demonstrated our enabling core technology, built an amazing team and now have the capital we need to get our technology out into the world and start curbing emissions. Just as importantly, the participation of strategic partners at the forefront of the industries we are poised to decarbonize–energy, mining, logistics, and heavy manufacturing, to name a few–provides vital insight that will facilitate and accelerate our path to market.”

Additional investors in the financing round included Amazon’s Climate Pledge Fund, Cosan, Equinor Ventures, Honeywell, Mitsubishi Heavy Industries, and Rio Tinto, and previous investors Breakthrough Energy Ventures, Capricorn Partners, Energy Impact Partners, and Prelude Ventures.

Kara Hurst, Vice President for Worldwide Sustainability at Amazon, said:

“Through our commitment to The Climate Pledge, Amazon has a goal to be net-zero carbon by 2040. We are proud to support Electric Hydrogen’s innovative efforts to scale the green hydrogen economy and to meet the decarbonization needs of hard-to-abate sectors like freight transportation and ocean shipping.”