Clean energy company Modern Hydrogen has raised $32.8 million in funding to accelerate the decarbonization of gas into clean hydrogen, with a mission to make energy cleaner and cheaper.
It will use the investment to increase the capacity of hydrogen production units. This will allow the company to further the decarbonization of gas networks and support distributed production of hydrogen without relying on new hydrogen pipelines or large infrastructure upgrades.
The Series B-2 funding round was led by NextEra Energy, with investors Miura and National Grid Partners also participating. According to Modern Hydrogen, this funding round has highlighted the partners’ confidence in the company’s vision to clean up natural gas, one of the largest sources of energy.
Through Modern Hydrogen’s partnership with Miura in Japan, the company will boost its presence in the global market and expand its clean carbon material offerings. Daisuke Miyauchi, president and CEO of MIRUA Co., said clean hydrogen production at the point of use from natural gas, partnered with their hydrogen-fired boiler, will be a solution for customers who have limited access to clean hydrogen through other pathways. He also said the companies will work together towards hydrogen deployment as early as possible.
There are 3 million miles of natural gas pipelines in the United States and the delivered price of natural gas is typically three to five times cheaper than delivered electricity, said Modern Hydrogen co-founder and CEO Tony Pan. The company’s technology allows them to strip carbon atoms from gas at the end of the pipe before it becomes carbon dioxide to deliver decarbonized gas – clean hydrogen – on location.
With this funding, the consumer can reap the benefits of hydrogen with no new pipes or transmission permits needed, which could take decades and billions of dollars, according to the company.
Scrapping its old name, Modern Electron, Modern Hydrogen has also changed its identity to reflect a commitment to innovation within the clean hydrogen economy. This will allow the company to expand the clean energy and materials they offer under the “Modern” name.
In a report by the International Energy Agency, demand for hydrogen has increased more than threefold since 1975 and its production is responsible for around 830 million tons of carbon emissions per year. Since natural gas is currently the primary source of hydrogen production there is growing interest in electrolytic hydrogen, which uses electricity to split water into hydrogen and oxygen in an electrolyzer.
To contribute significantly to carbon goals and clean energy, hydrogen must be adopted in sectors where it is rarely used, such as power generation, buildings, and transport. Volvo did this recently by testing hydrogen-powered trucks on public roads. Other companies and manufacturers such as Hy Stor Energy in Mississippi and Electric Hydrogen in Massachusetts have begun to follow the clean hydrogen expansion, meaning a possibility for the increase of hydrogen use in the energy sector.