Bill Gates-backed Electric Hydrogen inks second deal to sell 1GW of its massive electrolysers
Utility AES wants the capacity reservation agreement to help it expand its green hydrogen project portfolio
Electric Hydrogen, a start-up backed by billionaire investor Bill Gates, has secured agreement from a major US utility to buy 1GW of its massive electrolysis systems — the second gigawatt-scale deal signed by the company in under six months.
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The framework reservation agreement allows US utility and prospective green hydrogen developer AES to order up to 1GW of Electric Hydrogen’s 100MW electrolysers in the future, equivalent to ten units.
It is also participating in two US hydrogen hubs, granted a total of $2.4bn between them as part of the Biden administration’s $7bn H2Hubs programme, the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) in California, and the HyVelocity Hub on the Gulf Coast of Texas.
It is also working on green ammonia projects in Chile and Brazil.
But the developer wants to use the capacity reservation agreement to expand its green hydrogen project portfolio.
“Electric Hydrogen’s innovative technology and large-scale product enables AES to offer cost-effective decarbonisation solutions for our customers in the most difficult to decarbonize sectors,” said Ashley Smith, chief innovation officer at AES.
“AES is taking steps to secure our supply chain proactively as we strategically grow our green hydrogen business.”
Electric Hydrogen is producing its own 100MW turnkey hydrogen electrolysers, which when deployed would be by far the largest single electrolysers in the world.
Most electrolysis systems are made up of smaller-sized stacks that are configured together into a larger plant, but Electric Hydrogen claims that by building its systems bigger from the start it can take advantage of economies of scale and bring costs down fast.