Mitsubishi Heavy invests in hydrogen startup
By Jack Burke23 June 2022
MHI joins investors including Equinor, Amazon, Rio Tinto
Mitsubishi Heavy Industries, Ltd. (MHI) has invested in Electric Hydrogen (EH2), a clean hydrogen startup, to support its efforts in developing cost-competitive, fossil-free hydrogen.
Through this investment, MHI said it aims to strengthen and diversify its hydrogen value chain, advance its energy transition business, and act on its commitment toward global carbon neutrality goals. The investment has been executed through Mitsubishi Heavy Industries America, Inc. (MHIA), which joins a consortium of investors including Breakthrough Energy Ventures, Equinor, Amazon, Honeywell and Rio Tinto. According to EH2, the company received US$198 million financing to support its efforts in making cost-competitive fossil-free hydrogen.
“No single company can provide needed technology to achieve global decarbonization, which is why we recognize the importance of investing in and enabling companies like Electric Hydrogen to develop new solutions,” said Takajiro Ishikawa, president and CEO of MHIA.
Natick, Massachusetts, USA-based EH2’s patented approach to electrolysis – the process of producing hydrogen from electricity and water –is specially designed for the high-volume, low-cost production required to support massive industrial operations, which could significantly improve the levelized cost of hydrogen.
This investment will support the scale-up of EH2’s high electrolyzer technology and its use in the manufacturing, and deployment of pilot projects to produce fossil-free hydrogen (also known as “green hydrogen”) at large scale for industrial and infrastructure applications.
Industries not amenable to electrification, such as steel, fertilizer and intercontinental energy transport, account for more than a third of the world’s total greenhouse gas emissions, according to EH2. Hydrogen, when produced in places with abundant and clean electricity, is a promising pathway for decarbonizing these industries.
MHI said it is working to build a hydrogen value chain through its proprietary technologies, plus investment and collaboration with companies such as EH2.