The Silicon Valley firm Ohmium revealed on Wednesday that it has raised $250 million to accelerate the production of equipment that can produce clean hydrogen and supplant fossil fuels.
This might be a significant milestone for an industry that seeks to combat climate change.
According to some climate scientists, using hydrogen can replace burning coal, oil, or gas when producing steel or cement, for example, without causing climate change.
Silicon Valley Investment Due to Climate Change Awareness
Nonetheless, there are now more and more examples from the real world.
A firm developing pure hydrogen from water couldn’t have raised several hundred million dollars just four or five years ago, according to Daryl Wilson, executive director of the Hydrogen Council.
He claimed that due to its recent quick growth, high demand, and widespread acceptance as a critical component of combating climate change.
The consulting company Capgemini’s Mark Viehman, a hydrogen and clean fuels expert, termed the $250 million fundraising effort quite impressive and said that according to recent research, 64% of energy and utility businesses intend to invest in low-carbon hydrogen initiatives by 2030.
CEO Arne Ballantine stated that the company will increase its 400-person workforce and build up its plant in Chikkaballapur, which is outside of Bengaluru, India, as well as continue research at its Fremont, California headquarters to lower production costs.
Ballantine stated that he intended to produce enough electrolyzers each year to produce 2 gigawatts worth of hydrogen, which is sufficient for a number of refineries or steel or fertilizer factories.
Aspirational goals are being established by nations and sectors of the economy to reduce carbon dioxide from heavy manufacturing utilizing hydrogen.
Read more: Social Security Filing Age: Why There’s No One-Size-Fits-All Answer
Countries and Industries Aim to Cut Carbon Emissions
Also, it is intended to be used for transportation and power production.
For the generation of clean, or green, hydrogen, the United States, European Union, Canada, and India all provide tax credits.
Global hydrogen demand will reach 94 million tons in 2021, according to the International Energy Agency’s report from September.
To get on pace for net zero emissions by 2050, it claimed, about 200 million tons will be required by 2030.
There are around twenty significant manufacturers of electrolyzers.
If an electrolyzer gets its power from a grid that uses renewable energy sources, like wind and solar, it will produce clean hydrogen.
Ohmium customers, according to Ballantine, are entirely focused on this approach.
As fewer than 1% of the hydrogen generated globally today originates from renewable energy, this will represent a significant shift.
Read more: IRS Launches Global Initiative To Combat Cybercrime With Four New Investigators
