Green Hydrogen Tech Startup Verdagy Raises $25 Million
Green hydrogen tech company Verdagy announced today the closing of a $25 million funding round led by TDK Ventures. The financing will enable the ongoing development and commercialization of Verdagy’s unique electrolyzer technology. Other investors in the round included BHP Ventures, Doral Energy Tech Ventures, Khosla Ventures, Orbia Ventures, Shell Ventures, and Temasek.
Marty Neese, Verdagy CEO, said:
“This round of funding will enable Verdagy to continue its scale-up activities and further demonstrate our world-class electrolyzer technology. I appreciate the confidence this group of investors has in our team and have been impressed with their broad insights into the use of green hydrogen for decarbonization across multiple end-uses.”
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.
Despite being the most abundant element in the universe, however, there are no pure hydrogen deposits on Earth and it must be extracted from other materials. The extraction process often creates pollutants and GHG emissions. Significant investments are required to develop clean extraction processes, such as green hydrogen, which uses a renewable energy-powered electrolysis process to extract hydrogen from water.
Verdagy, spun out of green chemical-company Chemetry in 2021, has created a new membrane-based approach to electrolysis, using large active area cells with the ability to operate at high current densities and a wide dynamic operating range, offering a low capital and operating cost approach to large scale water electrolysis.
Anil Achyuta, TDK Ventures Investment Director and member of the Verdagy Board, said:
“Verdagy’s unique approach to large-scale water electrolysis provides the company an enormous scale advantage in producing large amounts of green hydrogen, which is necessary to unlock deep decarbonization in the chemical, steel, mining, and other hard-to-abate sectors. Our expertise in electrochemistry, materials science, and power conversion are aligned with Verdagy’s goals and will help further their product development.”
Vikas Gupta, Investment Director at Shell Ventures, added:
“Verdagy’s electrolyzer technology is well-positioned to scale up the production of green hydrogen and further advance the hydrogen economy. Their incorporation of novel membrane technology lowers the overall production costs and unlocks a wide range of opportunities across hard-to-abate industries. Shell Ventures is excited to become part of their journey as they scale up their activities.”