NovoHydrogen Gets $20M, Role in DOE Hub – Greeley Tribune
Colorado startup NovoHydrogen has secured a $20 million equity commitment from Modern Energy and has been selected by the US Department of Energy to participate in one of seven regional hydrogen development hubs. The company focusses exclusively on green hydrogen production, using renewable energy to power electrolysis which splits water into hydrogen and oxygen, producing no greenhouse gases. NovoHydrogen is currently involved in 15 projects across nine states, with incentives from the Inflation Reduction Act and infrastructure bill tipped to make renewable-source hydrogen cost-competitive with fossil fuel-derived hydrogen.
Colorado Startup Spearheads Green Hydrogen Development
NovoHydrogen, a Colorado-based startup, is making significant strides in fueling sectors considered difficult to decarbonize, such as shipping and heavy industries. A $20 million equity commitment from Modern Energy has bolstered the company’s efforts.
The U.S. Department of Energy has also chosen NovoHydrogen to be part of a regional hub for hydrogen energy development in the Pacific Northwest. Although Colorado was not selected for a regional hub and the accompanying $8 billion in federal funding, this decision doesn’t hinder the state’s progress in green hydrogen development.
Founder Matt McMonagle launched NovoHydrogen in 2021, focusing solely on green hydrogen production. Green hydrogen, created through electrolysis, uses renewable energy to split water into hydrogen and oxygen, producing no greenhouse gases. This process stands to benefit from the Inflation Reduction Act’s tax credits for green hydrogen projects.
With 15 projects across nine states, NovoHydrogen’s team of 11 employees is expected to expand in the near future. The company highlights the problematic nature of current hydrogen production, attributing 2 to 3% of global greenhouse gas emissions to this process.
Today, approximately 95% of hydrogen is derived from fossil fuels, mostly producing “gray” hydrogen. Some methods capture and store resulting carbon dioxide emissions to produce “blue” hydrogen. However, according to TJ Kirk of local research and consulting organization RMI, these methods often fail to capture more than 60% of emissions.
Operators are exploring hydrogen as a supplement or alternative to natural gas in power plants. Even blending hydrogen with natural gas can reduce carbon emissions. However, this reduction isn’t a direct correlation – a 10% blend might only result in a 5 to 7% reduction, says Kirk.
RMI suggests prioritizing hydrogen to decarbonize sectors where direct electrification is challenging, such as heavy industry, long-haul transport, and shipping fuels. If produced via renewable energy, hydrogen could significantly reduce greenhouse gas emissions from steel production, a major global emitter.
While hydrogen’s development as an energy source is ongoing, it can be stored for future use in electricity generation. Even though many hydrogen projects are in planning stages, few are operational. However, economic incentives from the Inflation Reduction Act and infrastructure bill could stimulate industry growth, making renewable-sourced hydrogen cost-competitive with fossil fuel-derived hydrogen.
According to McMonagle, green hydrogen shows potential to be cheaper and less subject to commodity price volatility than fossil-fuel-based hydrogen.
Read More US Economic News