Green hydrogen tech startup Ohmium International announced that it has raised $250 million, with proceeds aimed at scaling its business, including its manufacturing capacity for electrolyzers and its international presence.
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.
Around 90 million metric tons of hydrogen are produced annually, although the vast majority is extracted using fossil fuels, which create pollutants and GHG emissions. 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.
Founded in 2019, Nevada-based Ohmium designs and manufactures modular, scalable proton exchange membrane (PEM) electrolyzer systems for the production of green hydrogen. Using PEM electrolysis technology, water is fed into an anode, electricity is applied to split the water into hydrogen ions, electrons and oxygen, and the hydrogen protons are then conducted through the PEM membrane to the cathode, reacting with electrons to form hydrogen gas. Ohmium’s electrolyzers use 100% renewable energy to produce green hydrogen.
According to Ohmium, the proceeds from the new financing will be used to support the company’s expansion to 2 GW in annual manufacturing capacity and to accelerate international growth, with projects for customers in regions including the U.S., Europe, India and the Middle East. Ohmium added that the investment will provide capital to scale its business, including its R&D programs aimed at reducing the cost of green hydrogen production.
Arne Ballantine, CEO of Ohmium, said:
“Ohmium is experiencing tremendous success in 2023. We are on track to deliver our PEM electrolyzer systems to customers worldwide operating across multiple sectors. This capital raise is a validation of Ohmium’s strategy and technology leadership and provides our organization with the kind of investment needed to deliver on our ambitious plans for international growth.”
The Series C growth equity financing round was led by TPG Rise Climate, the $7 billion climate investing strategy of TPG’s global impact investing platform, TPG Rise, and included participation from Hanover Technology Investment Management and existing investors Energy Transition Ventures and Fenice Investment Group.
Ed Beckley, Partner at TPG and a senior member of the TPG Rise Climate investing team, said:
“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. 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.”