Electric Hydrogen becomes first $1 billion green hydrogen startup, with Fortescue as lead investor
Global company Fortescue Energy has announced a substantial investment in Electric Hydrogen (EH2), a leader in green hydrogen technology, who create turnkey modular electrolyser systems.
Fortescue has taken the lead investor role in US based company EH2's Series C funding round, contributing an $380 million to drive the development of green hydrogen projects. Under a framework procurement agreement signed between the two, EH2 will supply Fortescue with 1 gigawatt of its cutting-edge electrolyser systems.
Each of EH2's 100MW electrolyser systems includes all system components required to turn water and electricity into green hydrogen on a large scale, including power conversion, gas processing, water treatment, and thermal management. They can produce nearly 50 tons of green hydrogen per day, and they do so at a transformative low cost.
Mark Hutchinson, CEO of Fortescue Energy, detailed the company's unwavering commitment to supporting the rapid scaling of green technology to facilitate the decarbonization of heavy industries.
"Right now, there are not enough electrolysers in the world to support the amount of green hydrogen we are set to produce. 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."
Raffi Garabedian, CEO and Co-founder of EH2, echoed this sentiment, highlighting their shared ambition with Fortescue to achieve large-scale, low-cost production of green hydrogen globally.
"We want to make fossil-free hydrogen an economic inevitability for fertilizer producers, steelmakers, chemical companies and other critical industries that have no other option to decarbonize," Garabedian said.
“Our team is excited to begin building and commissioning our leading electrolyzer technology at Fortescue project sites to deliver on that commitment”.
Fortescue's investment in EH2 was successfully completed in June 2023.
