U.S. electrolyzer maker Electric Hydrogen said on Monday it has acquired hydrogen project developer Ambient Fuels and entered into a financing partnership with Generate Capital to accelerate the deployment of large-scale clean hydrogen projects worldwide.
The acquisition adds Ambient Fuels’ portfolio of U.S. project sites and development expertise to Electric Hydrogen’s platform, strengthening its ability to partner with customers on co-developing renewable hydrogen plants.
The transaction, which closed in May, also gives the Massachusetts-based company scope to originate, acquire and sell projects as demand for clean hydrogen accelerates in the United States and Europe.
Chief Executive and co-founder Raffi Garabedian said favorable policy tailwinds are boosting the market. “Clean hydrogen is poised for significant growth in the years ahead, supported in part by the RED-III compliance framework in the E.U. and the 45V hydrogen production tax credit in the U.S.,” he said. “This new integration will both enable the industry to scale faster and give Electric Hydrogen more ways to serve our diverse array of customers.”
Financing Partnership with Generate Capital
Alongside the deal, Electric Hydrogen signed a strategic agreement with Generate Capital, a San Francisco-based infrastructure investor that had previously backed Ambient Fuels.
Generate will make available up to $400 million in project finance solutions globally, aiming to reduce the levelized cost of hydrogen and help projects overcome bankability challenges.
“Working with Electric Hydrogen, we can help solve current finance challenges and reduce costs, enabling more hydrogen projects to reach final investment decision,” said Scott Gosselink, managing director at Generate Capital.
Jacob Susman, the former chief executive of Ambient Fuels and now head of project development at Electric Hydrogen, said the arrangement would appeal to customers who prefer to buy renewable hydrogen as an input rather than take on the risk of building and operating their own plants.
“We believe this is a key unlock for the nascent renewable hydrogen and renewable fuels industries,” he said.
Global Push for Clean Hydrogen
Hydrogen is increasingly viewed as a tool to decarbonize heavy industries such as steelmaking, cement and chemicals, as well as long-haul transport.
Governments on both sides of the Atlantic are rolling out policy incentives and subsidies to scale production.
Electric Hydrogen said its HYPRPlant system, built in the U.S. and shipped as modular skids, uses high-power proton exchange membrane electrolyzers to deliver low-cost hydrogen from renewable energy.
The productized plant can cut installed project costs by as much as 60 percent and shorten deployment timelines.
The company said it plans to begin deploying project capital from 2026.
