Green hydrogen goes boom

VC investment in green hydrogen producers rocketed from $166M in 2020 to $3B last year, that’s a 17x growth in two years. Meanwhile, goverment agencies are making long-term plans on hydrogen, with the EU 2020 Hydrogen Strategy or the US Inflation Reduction Act.

Green hydrogen, which is produced by using clean energy from surplus renewable energy sources, represents only 01.% of overall hydrogen production. The majority of hydrogen currently comes from fossil fuels, either via the reforming of natural gas or from coal via gasification.

When it comes to its applications, hydrogen isn’t optimal for energy storage or transportation, but there are other industries it can used for, like electric power and chemicals. For instance with energy, renewables cannot always generate at all hours of the day and green hydrogen production is able to supply unlimited flexible capacity for reliable backup, and strategic energy storage for resilience to shocks. While for other applications like steelmaking, hydrogen can deliver great emissions reductions abating 25–30 kg CO2e per kg H2 used.

At Dealroom.co, we’ve mapped 110+ startups working on the production, generation, and distribution of green hydrogen. Access the full landscape by clicking here.

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