U.S. electrolyzer manufacturer Electric Hydrogen (EH2) has reached a comprehensive framework supply agreement with compatriot energy company AES Corporation for up to 1 GW of large-scale electrolyzer plants to produce low-cost green hydrogen from renewable energy.
Specifically, the supply reservation agreement includes commercial requirements for AES to order up to 1 GW of fully integrated, low-cost 100 MW electrolyzer plants from Electric Hydrogen.
These electrolyzer plants feature the capability to follow variable renewable energy resources allowing customers to optimize energy use and maximize project returns, Electric Hydrogen said, adding that the plants are designed and manufactured in the U.S., and the company is presently pre-fabricating its first customer-sited plant in Texas and has two operating plants in California.
Electric Hydrogen noted that its roadmap to scale high-rate manufacturing in the U.S. is intended to make green hydrogen competitive with fossil fuel resources by 2030 and will allow U.S. electrolyzer manufacturing to outstrip low-tech electrolyzer alternatives, such as alkaline products currently mass-produced in China.
Raffi Garabedian, Electric Hydrogen’s CEO, stated: “We’re excited to help AES deliver on the promise of green hydrogen and look forward to partnering with them on their future hydrogen projects.”
Ashley Smith, AES’ Chief Innovation Officer, commented: “Electric Hydrogen’s innovative technology and large-scale product enables AES to offer cost-effective decarbonization solutions for our customers in the most difficult to decarbonize sectors. AES is taking steps to secure our supply chain proactively as we strategically grow our green hydrogen business.”
It is worth mentioning that at the end of 2022, together with compatriot industrial gas supplier Air Products, AES revealed plans to invest approximately $4 billion to build, own and operate a green hydrogen production facility in Wilbarger County, Texas, due to begin commercial operations in 2027.
This mega-scale renewable power to hydrogen project is expected to include approximately 1.4 GW of wind and solar power generation, along with electrolyzer capacity capable of producing over 200 metric tons per day of green hydrogen.
At the time, Andrés Gluski, AES President and CEO, noted that “AES believes that green hydrogen has a key role to play in decarbonizing transportation and accelerating the future of energy.”