Electric Hydrogen Becomes First Green Hydrogen Unicorn with $1 Billion Valuation

EH2's business model is set up to sell cheaper electrolyzers to hydrogen producers.

Electric Hydrogen (EH2), a Massachusetts-based green hydrogen technology firm backed by Microsoft's Climate Innovation Fund, United Airlines, BP, and Fortescue Metals, is green hydrogen's first unicorn, with a $380 million Series C raise bringing its valuation to $1 billion. The funds, which bring EH2's total funding to around $600 million, will be used to expand the production capacity of its electrolyzers, devices that split water into hydrogen and oxygen. EH2 engineers designed and built all critical electrolyzer components in-house and increased performance to decrease costs. The firm says it has figured out a way to produce more hydrogen at a cheaper price.
EH2's business model is set up to sell cheaper electrolyzers to hydrogen producers. The firm is rapidly working to build out its electrolyzer factory in Massachusetts for launch in 2024 and plans to deliver and commission 100 MW electrolyzer systems, each capable of producing nearly 50 tons of green hydrogen a day at low cost. By 2030, EH2 hopes to allow customers to produce hydrogen in states with plenty of renewable energy for about $1.50 per kg, which is about how much it costs when made from natural gas. Last month, the firm was selected to equip New Fortress Energy's green hydrogen plant in Texas. NFE is set to begin hydrogen production in Q4 2024 with full commercial operation in 2025.