Ecolectro Closes $10.5M Series A Round to Accelerate Next-Generation Green Hydrogen Electrolyzers
PR Newswire
ITHACA, N.Y., Nov. 14, 2024
Ecolectro's proprietary AEM technology is currently demonstrating green hydrogen production at under $2.50/kg with over 70% efficiency
Led by Toyota Ventures, the funding helps Ecolectro advance its fully integrated, scalable electrolyzers to provide flexible, on-site hydrogen generation, allowing customers to qualify for green hydrogen tax credits
In partnership with Liberty New York Gas, Ecolectro is already powering New York State's first project to blend green hydrogen with natural gas for commercial heating
ITHACA, N.Y., Nov. 14, 2024 /PRNewswire/ -- Ecolectro, an emerging leader in green hydrogen technology, today announced the successful close of its $10.5M Series A funding round, led by Toyota Ventures with participation from Starshot Capital, DNX Ventures, Energy Revolution Ventures, New Climate Ventures, Banco Popular Impact Fund, and Techstars, among others. This funding brings Ecolectro's total capital raised to $27.7M, including grant funding from the U.S. Department of Energy under the Infrastructure Investment and Jobs Act, New York State's Energy Research and Development Authority (NYSERDA), and the National Science Foundation. These funds will be used to accelerate the development and deployment of Ecolectro's groundbreaking Anion Exchange Membrane $(AEM)$ electrolyzers, offering an affordable and scalable path to reducing carbon emissions through true green hydrogen.
The global green hydrogen market, valued at over $7B in 2023, is projected to grow at an annual rate of 41.6% over the next decade. Despite this rapid growth, the nascent hydrogen industry still faces significant cost and logistical challenges. A major barrier is the reliance on Proton Exchange Membrane (PEM) electrolyzers, which require iridium--an extremely rare and expensive metal that has seen prices rise by over 700% in the last decade. Additionally, PEM electrolyzers typically utilize PFAS, the "forever chemicals" linked to cancer, infertility, and ozone depletion, that are facing severe restrictions in the US, EU, Japan, and other jurisdictions. These challenges are further compounded by the high costs of shipping and storing hydrogen, which can account for up to half the total delivered price.
Ecolectro, founded by Cornell PhD chemists Dr. Kristina M. Hugar and Dr. Gabriel G. Rodríguez-Calero, has developed a breakthrough AEM electrolyzer. At the core of this technology is a proprietary membrane chemistry that eliminates the need for rare earth materials like iridium and harmful chemicals such as PFAS, instead utilizing readily available, recyclable and eco-friendly materials. This membrane is highly durable, operating efficiently in high-temperature and alkaline conditions, and achieves over 70% efficiency (<47.5 kWh/kg) in typical operating environments, significantly outperforming comparable PEM and alkaline systems.
Additionally, Ecolectro's AEM electrolyzers provide reliable performance even with variable energy inputs, making them ideal for integration with solar, wind, and other intermittent renewable energy sources, as well as for industries where continuous hydrogen production is not always needed.
Ecolectro's fully integrated, plug-and-play electrolyzers are designed with flexibility in mind to meet specific customer needs. Their modular design allows customers to adopt hydrogen without large upfront investments, and expand their system requirements over time.
By enabling on-site hydrogen production, Ecolectro significantly lowers the overall cost of hydrogen by eliminating the need for expensive transportation and storage infrastructure. This also reduces environmental impacts by cutting carbon emissions from transport trucks and preventing hydrogen losses that typically occur during storage and handling. Customers who adopt Ecolectro's electrolyzers to produce their own hydrogen are also eligible to receive federal and state green hydrogen tax credits, further enhancing the economic appeal of the solution.
"Hydrogen is key to decarbonizing heavy industry and other hard-to-abate sectors, but cost-prohibitive barriers have delayed its widespread adoption," said Dr. Rodríguez-Calero, Co-Founder and CEO of Ecolectro. "With our innovative AEM technology, we're breaking down those barriers today--not years from now. Thanks to our investors, including Toyota Ventures, we're well-positioned to bring affordable green hydrogen to market at scale next year."
This past summer, Ecolectro launched its first commercial deployment with Liberty New York Gas in Massena, New York, deploying a 10 kW electrolyzer pilot program to produce hydrogen that was blended with natural gas to heat commercial buildings, with each kilogram of hydrogen abating at least 5.5 kg of CO2 emissions that would have been produced if natural gas were used exclusively. Based on Liberty's actual costs for water and electricity, as well as Ecolectro's at-scale manufacturing estimates, Liberty was able to produce green hydrogen for under $2.50/kg--well below the U.S. Department of Energy's 2030 target of $3/kg. The application of federal and state tax credits, combined with additional manufacturing synergies, is expected to drive this cost well below $1 per kilogram in the near term. Given the success of the program, Liberty has elected to increase the scale of their pilot deployment to 1 MW, laying the groundwork for future large-scale projects.
"Ecolectro has developed a world-class AEM and electrolyzer stack that has the potential to drive the cost of green hydrogen down to $1.35/kg by 2030," said Lisa Coca, Climate Fund partner at Toyota Ventures and Ecolectro Board Member. "Affordable green hydrogen is a promising path to achieving carbon neutrality, and this funding marks a critical inflection point in providing the potential for abundant, versatile and inexpensive sources of green power."
The Series A funding will accelerate the development of Ecolectro's commercial-class 250-500 kW and 1-5 MW electrolyzers, with prototypes set to begin testing with industry partners early next year and commercial availability expected by late 2025. These groundbreaking systems are especially relevant for hard-to-decarbonize industries such as chemical refining, transportation, steel, and aviation, providing a scalable and affordable path to reducing carbon emissions through true green hydrogen.
About Ecolectro
Ecolectro is revolutionizing the green hydrogen landscape with affordable, scalable electrolyzer technology. By eliminating the need for precious metals like iridium and PFAS, and utilizing readily available, recyclable and eco-friendly materials, Ecolectro's AEM electrolyzers significantly reduce production and maintenance costs, making green hydrogen more accessible across industries. The company's mission is to accelerate global decarbonization by providing customers with practical, cost-effective green hydrogen solutions.
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SOURCE Ecolectro, Inc.
/CONTACT: PR for Ecolectro, Ecolectro@vsc.co
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November 14, 2024 13:30 ET (18:30 GMT)
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