UNITED STATES NEWS

Climate solution: Green hydrogen company Ohmium raises $250M

Apr 26, 2023, 1:04 AM | Updated: 6:58 am

In what could prove a milestone for an industry that hopes to help address climate change, the Silicon Valley company Ohmium announced Wednesday it has raised $250 million to increase production of machines that can make clean hydrogen and displace fossil fuels.

Some climate experts say burning hydrogen can substitute for burning coal, oil or gas, for example in making steel or cement — without contributing to climate change. That’s been largely theoretical, but real world examples are now growing.

Just four or five years ago, a company working on clean hydrogen from water would not have been able to raise several hundred million dollars, said Daryl Wilson, executive director of the Hydrogen Council. But now there’s rapid growth and demand for it, and a broader recognition that it’s key to addressing climate change, he said.

Mark Viehman, a hydrogen and clean fuels expert at the consulting firm Capgemini, called $250 million a “very impressive” fundraise, and said its own recent research found that 64% of energy and utility companies plan to put money into low-carbon hydrogen efforts by 2030.

Ohmium’s role is to make electrolyzers, the devices that take water and split it into hydrogen and oxygen.

CEO Arne Ballantine said the company will use the $250 million to scale up its plant in Chikkaballapur, outside Bengaluru, India, continue research at the Fremont, California headquarters to reduce the cost of production, and add to its 400-person workforce.

Ballantine said he plans to make enough electrolyzers each year to supply 2 gigawatts’ worth of hydrogen — enough for a few steel or fertilizer plants or several refineries.

Countries and industries are setting ambitious targets to cut carbon dioxide from heavy manufacturing using hydrogen. There are also plans to use it in power generation and transport. The United States, European Union, Canada and India are offering tax credits and production incentives for clean, or green, hydrogen.

The International Energy Agency said in September that global hydrogen demand reached 94 million tons in 2021. Nearly 200 million tons will be needed by 2030 to get on track for net zero emissions by 2050, it said. There are about two dozen major electrolyzer manufacturers.

An electrolyzer produces clean hydrogen if it draws electricity from a grid that’s powered by renewable energy, such as wind and solar. Ballantine said Ohmium clients are completely focused on this method. This will be a major change, because less than 1% of hydrogen produced globally now comes from renewable energy, according to the IEA.

It will take a significant ramp-up in electrolyzer manufacturing and in zero-carbon electricity to meet the demand for low-emissions hydrogen, said Emily Kent, the U.S. director for zero-carbon fuels at the Clean Air Task Force. That’s because it requires massive amounts of electricity to run the electrolyzers.

Most hydrogen today is made from natural gas, which means greenhouse gases are released to get it out of the ground, and then more can leak as it travels through pipelines. Then to crack the hydrogen from natural gas, companies burn more fossil fuel to make steam, releasing more planet-warming greenhouse gases, unless carbon capture technology is used. This common method does not require an electrolyzer and the hydrogen then goes on to be used mainly in the refining and chemical sectors.

Some U.S. power plants plan to use Ohmium’s “Lotus” electrolyzer as a partial substitute for natural gas. Ohmium is also collaborating with Spanish energy company Cepsa and renewable energy developer Amp Energy India on green hydrogen projects. It announced an agreement last week to send an electrolyzer to a liquified natural gas import terminal in Andalusia, Spain.

Each electrolyzer can generate up to 50 tons of hydrogen per year, costs a few hundred thousand dollars and comes in a cabinet 8 feet high by 5 feet wide by 6 feet long, according to Ohmium. They’re interlocking and modular, in case more than one is needed.

Ballantine said it can be difficult to grasp exactly what hydrogen gas is and how it is useful in lessening climate change. But if he shows someone a piece of steel and says it was made releasing far less greenhouse gases, because we burned hydrogen made from water instead of burning coal to heat it up, then they get it, he said.

____

Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

United States News

Heisman Trophy finalists, from left, LSU quarterback Jayden Daniels, Ohio State wide receiver Marvi...

Associated Press

LSU QB Jayden Daniels overcomes being outside CFP race to win Heisman Trophy with prolific season

NEW YORK (AP) — LSU quarterback Jayden Daniels won the Heisman Trophy on Saturday night, becoming the first player since 2016 to win college football’s most prestigious player of the year award as part of a team that did not play for a conference championship. The fifth-year player, who transferred from Arizona State to LSU […]

1 hour ago

Associated Press

Homes damaged, power knocked out as severe weather rakes Tennessee

CLARKSVILLE, Tenn. (AP) — An apparent tornado tore roofs off homes and knocked out power to thousands in Tennessee on Saturday as a line of severe storms raked the state. Police and firefighters in Clarksville were responding to multiple reports of damage in the northern part of the city, which is north of Nashville near […]

4 hours ago

Associated Press

The NRA has a surprising defender in its free speech case before the Supreme Court: the ACLU

NEW YORK (AP) — In a case of politics making strange bedfellows, the National Rifle Association will be represented by frequent nemesis the American Civil Liberties Union in an appeal before the U.S. Supreme Court. The New York-based civil liberties group confirmed Saturday that it would provide legal representation for the gun-rights group in its […]

5 hours ago

Associated Press

US Coast Guard helicopter that crashed during rescue mission in Alaska is recovered

JUNEAU, Alaska (AP) — A helicopter that crashed in southeast Alaska during a rescue mission last month has been recovered, the U.S. Coast Guard said Saturday. The downed Coast Guard helicopter was recovered Friday and an investigation was ongoing. The MH-60 Jayhawk crashed on Read Island, about 80 miles (130 kilometers) east of Sitka, on […]

6 hours ago

Associated Press

Consumer product agency issues warning on small magnetic balls linked to deaths

The U.S. Consumer Product Safety Commission is warning about the danger of high-powered, pea-sized magnets found in toys, announcing one company’s recall of a set containing them and saying it was aware of seven deaths linked to their ingestion. The federal agency estimated that ingestion of the magnets led to 2,400 hospital emergency room visits […]

7 hours ago

Associated Press

Dozens of animals taken from Virginia roadside zoo as part of investigation

NATURAL BRIDGE, Va. (AP) — Over 100 animals –- both living and dead -– have been taken from a roadside zoo in western Virginia, according to court documents, as part of what state authorities are calling a criminal investigation. One search warrant executed Wednesday at the Natural Bridge Zoo in Rockbridge County shows that 89 […]

7 hours ago

Sponsored Articles

Follow @iamdamonallred...

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Follow @KTAR923...

The 2023 Diamondbacks are a good example to count on the underdog

The Arizona Diamondbacks made the World Series as a surprise. That they made the playoffs at all, got past the Milwaukee Brewers in the NL Wild Card round, swept the Los Angeles Dodgers in the NLDS and won two road games in Philadelphia to close out a full seven-game NLCS went against every expectation. Now, […]

Follow @KTAR923...

West Hunsaker at Morris Hall supports Make-A-Wish Foundation in Arizona

KTAR's Community Spotlight this month focuses on Morris Hall and its commitment to supporting the Make-A-Wish Foundation in Arizona.

Climate solution: Green hydrogen company Ohmium raises $250M