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Hydrogen Economy

Clean energy solutions for the long haul

Overview

The hydrogen economy represents an envisioned future in which hydrogen is readily used as a source of clean energy. Hydrogen can be used to generate power using either fuel cells or combustion. Both processes are clean and do not generate any carbon emissions. However, the same cannot be said about hydrogen production, and nearly all commercially produced hydrogen is currently generated using fossil fuels. Cleaner forms of hydrogen exist but are relatively expensive. Coupled with the fact that hydrogen is also a relatively weak energy carrier, makes the process a somewhat less attractive fossil fuel alternative. Nevertheless, several unique use cases, such as renewable energy storage, on-site industrial power generation, and long-range mobility make hydrogen relevant in addressing the climate crisis.

What's driving this industry?
Market Sizing

The US Hydrogen Economy could reach USD 3.9–USD 9.0 billion by 2026

Conservative case

USD 3.9 Bn

Base case

USD 5.2 Bn

Expansion case

USD 9.0 Bn

USD billion0246810202120222023202420252026
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COVID-19 IMPACT

  • Nikola Corporation has indefinitely postponed the launch of its hydrogen fuel cell pickup truck, Nikola Badger, due to Covid-19 restrictions.

  • ITM Power reported a 38% downward revision to 2020 revenue due to Covid-19 delays.

  • Quantron, Riversimple, and Loop Energy also reported delays due to Covid-19.

  • Bloom Energy, PowerCell Sweden, Horizon Fuel Cell Technologies, and Ionomr Innovations helped power temporary Covid-19 medical facilities.

  • Ionomr and Nikola received Covid-19 funding through government grants and relief programs.

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Market Mapping


Clean Hydrogen dominates an industry full of seed-stage startups

Clean Hydrogen is the most active segment in the industry followed by Next-Gen Hydrogen Distribution, Hydrogen Fuel Cells, and Hydrogen Vehicles while Low-Carbon Hydrogen represents the segment with the fewest number of startups. The lack of growth-stage startups represents the nascent status of the industry with commercial applications only starting to gradually emerge.

The presence of a higher number of seed-stage startups suggests that these technologies are somewhat proven and the industry could heat up over the next few years as these companies go to market. There is also evidence of vertical expansion along the value chain with some clean hydrogen startups leveraging their electrolyzer technology to produce fuel cells and vice versa and also some clean hydrogen and hydrogen vehicle startups complementing their products with expansions into hydrogen distribution.

Incumbents
Growth
Early
Seed
Pre-Seed
Low-carbon Hydrogen
?
Clean Hydrogen
?
Next-gen Hydrogen Distribution
?
Hydrogen Fuel Cells
?
Hydrogen Vehicles
?
(Hydrogenics)
(Hydrogenics)
(Hydrogenics)
(Hydrogenics)
(Hydrogenics)
FuelCell Energy
Linde
Air Liquide
BP
Eni
C-Zero
Hydra Energy
Divigas
Proton Technologies
Ekona Power
Plug Power
Nel Hydrogen
FuelCell Energy
Bloom Energy
Linde
Air Liquide
Air Products
Xebec (HyGear)
Cummins (Hydrogenics)
BP
Eni
Shell
TotalEnergies
Octopus Energy
ITM Power
Green Hydrogen Systems
Sunfire
Enapter
Elcogen
Hymeth
Sylfen
H2B2
Heliogen
Syzygy Plasmonics
Ionomr Innovations
Raven SR
Ergosup
SunHydrogen
Membrasenz
H2 Energy Now
Ways2H
H2Pro
Joi Scientific
Trolysis
Plug Power
Nel Hydrogen
Linde
Air Liquide
Eni
Shell
ITM Power
Hydrogenious LOHC Technologies
Atawey
Hydrogen In Motion
HES Energy
HyET Hydrogen
Nikola Motor Company
Ergosup
H2GO Power
HySiLabs
GRZ Technologies
CYRUS
Electriq Global
Ballard Power Systems
Plug Power
FuelCell Energy
Bloom Energy
Hyster-Yale (Nuvera Fuel Cells)
Cummins (Hydrogenics)
Toyota
General Motors
PowerCell Sweden
Loop Energy
Horizon Fuel Cell Technologies
Pajarito Powder
Elcogen
Sylfen
PowerUp Energy Technologies
Ionomr Innovations
EH Group Engineering
Toyota
Hyundai
Honda
Airbus
General Motors
Hyzon Motors
Quantron
HES Energy
Hydrox Systems
Nikola Motor Company
ZeroAvia
Hydra Energy
Riversimple
HyPoint
Alakai Technologies
Keyou

The Disruptors


Funding is centered around a few key startups

The industry is relatively underfunded with only around ten non-listed hydrogen economy disruptors having raised more than USD 10 million and none raising more than 100 million. Funding is also centered around a few key startups with the top-three highest funded non-listed disruptors—Heliogen, ZeroAvia, and Sunfire—accounting for around half of the total non-listed disruptor funding. NASDAQ-listed Nikola Corporation, the highest funded among all hydrogen economy startups, has raised more than five times the all private disruptors in the industry combined.  

Low-carbon Hydrogen

?

Disruptors

?
Funding in USD Millions
C-Zero
46
Hydra Energy
13
Watchlist
?
Ekona Power
Divigas
Proton Technologies

Clean Hydrogen

?

Disruptors

?
Funding in USD Millions
ITM Power
Public - Market cap USD 1.5 bn
Enapter
Public - Market cap USD 497.4 mn
Heliogen
Public - Market cap USD 378.3 mn
SunHydrogen
Public - Market cap USD 102.5 mn
Green Hydrogen Systems
Public - Market cap Unknown
Sunfire
269
H2Pro
107
Syzygy Plasmonics
30
Ionomr Innovations
25
Raven SR
20
Ergosup
18
Elcogen
7
Hymeth
0
Sylfen
Unknown
H2B2
Unknown
Watchlist
?
Joi Scientific
Membrasenz
H2 Energy Now
Ways2H
Trolysis

Next-gen Hydrogen Distribution

?

Disruptors

?
Funding in USD Millions
Nikola Motor Company
Public - Market cap USD 2.0 bn
ITM Power
Public - Market cap USD 1.5 bn
Hydrogenious LOHC Technologies
78
Ergosup
18
Atawey
1
Hydrogen In Motion
Unknown
HES Energy
Unknown
HyET Hydrogen
Unknown
Electriq Global
Unknown
Watchlist
?
H2GO Power
HySiLabs
GRZ Technologies
CYRUS

Hydrogen Fuel Cells

?

Disruptors

?
Funding in USD Millions
PowerCell Sweden
Public - Market cap USD 896.3 mn
Loop Energy
Public - Market cap USD 42.1 mn
Ionomr Innovations
25
Horizon Fuel Cell Technologies
11
Pajarito Powder
9
Elcogen
7
Sylfen
Unknown
PowerUp Energy Technologies
Unknown
Watchlist
?
EH Group Engineering

Hydrogen Vehicles

?

Disruptors

?
Funding in USD Millions
Nikola Motor Company
Public - Market cap USD 2.0 bn
Hyzon Motors
Public - Market cap USD 731.3 mn
ZeroAvia
110
Hydra Energy
13
Riversimple
7
HES Energy
Unknown
Quantron
Unknown
Hydrox Systems
Unknown
Watchlist
?
HyPoint
Keyou
Alakai Technologies

C-Zero

C-Zero has developed a proprietary technology called methane pyrolysis that converts natural gas into hydrogen and solid carbon (also known as turquoise hydrogen). The hydrogen generated is used for low-cost energy generation while carbon is permanently sequestered. As per the company, its technology avoids gray hydrogen’s emissions and blue hydrogen’s technical and cost challenges in capturing emissions as a gas. C-Zero believes that it can offer hydrogen at around USD 1.5 per kilogram (kg) compared to USD 4 per kg and up for green hydrogen obtained via electrolysis.

The company’s most recent funding round was in June 2022, when it raised USD 34 million in a funding round led by SK Gas. In February 2021, C-Zero raised USD 11.5 million in a Series A funding round led by Breakthrough Energy Ventures and Eni Next, to commercialize its technology.

Segment:
Low-carbon Hydrogen
Total funding:
USD 45.5 million
Competitors:
Ekona Power
Disruptor Funding History

Low-carbon Hydrogen:

C-Zero
Hydra Energy
Ekona Power
Divigas
Proton Technologies

Clean Hydrogen:

ITM Power
Enapter
Heliogen
SunHydrogen
Green Hydrogen Systems
Sunfire
H2Pro
Syzygy Plasmonics
Ionomr Innovations
Raven SR
Ergosup
Elcogen
Hymeth
Joi Scientific
Membrasenz
H2 Energy Now

Next-gen Hydrogen Distribution:

Nikola Motor Company
ITM Power
Hydrogenious LOHC Technologies
Ergosup
Atawey
H2GO Power
HySiLabs
GRZ Technologies

Competitive Analysis


Filter by a segment or companies of your choice
Low-carbon Hydrogen

Incumbents


Several clean hydrogen and hydrogen-focussed fuel cell pioneers such as Ballard Power Systems, Plug Power, and NEL Hydrogen are already generating around USD 100 million or more in annual revenue. Almost all of these companies have developed their core technology in-house over years in operation. All of these companies, however, have yet to turn a profit.

Leading fossil-fuel based hydrogen (grey hydrogen) suppliers such as Linde, Air Liquide, and Air Products are also gradually decarbonizing their operations through low-carbon or clean hydrogen processes. Oil and gas majors such as BP, Shell, Eni, and Total Energies also have several ongoing clean hydrogen projects as a part of their sustainability commitments.

Automobile companies such as Toyota and Hyundai lead the hydrogen fuel cell electric (FCEV) space while Airbus is planning on developing the first hydrogen powered commercial aircraft.

Low-carbon Hydrogen
Clean Hydrogen
Next-gen Hydrogen Distribution
Hydrogen Fuel Cells
Hydrogen Vehicles
In House Development
M&A
Partnership
Investment

Notable Investors


No investor data is available

Funding data are powered by Crunchbase
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