BP Throws Weight Behind Eco-Friendly Hydrogen Innovator Targeting Cost-Effective Production
LONDON (Reuters) – BP (NYSE:BP) recently funneled money into a budding firm. Their big idea? Harness industrial steam to make the creation of eco-friendly hydrogen more pocket-friendly.
BP Ventures Stakes Claim in Groundbreaking Tech
BP Ventures, the investment wing of the UK’s mammoth energy player, played a key role in a hefty $12.5 million Series A fundraising for the American innovator, Advanced Ionics. The news broke on Tuesday.
Who Else is Onboard?
Joining the funding bandwagon are big names like Mitsubishi Heavy Industries, Clean Energy Ventures, and Gatemore Capital Management.
The Green Hydrogen Revolution
By employing renewable energy to split H2O through electrolysis, green hydrogen is showing promise as the new champion in making transportation and big industries greener. But, it’s early days. Today’s production costs are a whopping five times that of the regular hydrogen we get from carbon-rich natural gas.
The Game-Changing Strategy of Advanced Ionics
The cash influx will enable Advanced Ionics to fast-track its plan of using industrial steam-powered electrolysers.
Enter Symbion: A Technical Marvel
The Symbion tech is pure genius. It leverages the warmth given off by existing plant processes. This ingenious method cuts down electricity demand to below 35 kWh for each kilo of hydrogen. That’s a significant drop when stacked against the usual 50 kWh per kilo from the norm. So says Advanced Ionics.
The result? A dramatic dip in electricity expenses for the electrolysis act. This alone munches up a lion’s share, over 70%, of green hydrogen’s production tab, as per the company.
The cherry on top? The green hydrogen price tag might tumble to less than a buck per kilo, undercutting most fossil-based production.
On-Field Trials and the Future Vision
Advanced Ionics isn’t just theorizing. They’ve got an ongoing trial collaboration with Spain’s oil and gas bigwig, Repsol (OTC:REPYY).
With eyes set on trimming down its carbon footprint, BP’s chips are heavily stacked on green hydrogen. The grand vision? By the time we hit 2030, they’re aiming to churn out a cool 0.5 to 0.7 million tonnes annually, with green hydrogen in the driver’s seat.
