(Bloomberg) —
US startup NovoHydrogen Holdings LLC received a $20 million equity investment from Modern Energy Group LLC to develop green hydrogen production plants across North America as the US pushes use of the carbon-free fuel.
The financial backing “really equips us to keep developing and get that steel in the ground,” Chief Executive Officer Matt McMonagle said in an interview.
NovoHydrogen develops plants that split water into hydrogen and oxygen using machines called electrolyzers, a process that — when powered by renewable energy — creates no greenhouse gases. The company, founded in 2021, has already partnered with electrolyzer-maker Ohmium International Inc. and raised $3.5 million in seed funding. Its latest backer, Modern Energy, is a privately held firm based in Durham, North Carolina that invests in and operates businesses involved in the energy transition.
Read More: Will Hydrogen Fuel a Clean-Energy Future, or Fizzle?
NovoHydrogen is focusing on building hydrogen plants at or near customers who need the gas, such as fertilizer factories. The Colorado-based firm has 15 projects under development, according to the CEO, with some supplied by their own dedicated solar or wind facilities.
President Joe Biden announced $7 billion in funding last week to create seven regional hydrogen hubs, where the gas will be produced and used. NovoHydrogen is participating in one of the proposed hubs that won federal support, in the Pacific Northwest.
© 2023 Bloomberg L.P.
