Hundreds of companies have pledged to produce large quantities of green hydrogen, but none has yet succeeded. Electric Hydrogen believes the secret to success lies in finding a better way to split the molecule.
Investors are convinced of this, too. Electric Hydrogen is the first unicorn in the green hydrogen industry. Recently, the company raised $380 million from backers such as British Petroleum (BP), United Airlines (UAL), Microsoft (MSFT) and iron ore producer Fortescue Metals. That pushed its enterprise value past the magic $1 billion mark.
This molecule is a water molecule. Breaking it down to produce green hydrogen requires a device called an electrolyzer. Such equipment is expensive and consumes a lot of renewable electricity to produce a small amount of hydrogen, making most projects less cost-effective. Electric Hydrogen says its electrolyzer can produce more hydrogen.
Electric Hydrogen aims to overcome the industry's past failures by combining Tesla Inc. 's (TSLA) tech savvy with First Solar's (FSLR) financial discipline. First Solar is the only US solar panel maker to have survived the onslaught of cheap Chinese imports. The company has brought in executives from both companies.