ABB and Canada-based Hydrogen Optimized have signed an agreement to expand the companies’ existing strategic relationship. This includes an investment by ABB into Key DH Technologies Inc. (KEY), the parent company of HOI, as they seek to accelerate the fast-emerging green hydrogen production segment with unique large-scale architecture. The financial terms of the agreement were not disclosed.
The signing follows the two companies’ showcase of their green hydrogen technologies at the 23 August 2022 German-Canadian Atlantic Renewable Hydrogen Expo in Stephenville, Newfoundland, which was attended by Canadian Prime Minister Justin Trudeau and German Chancellor Olaf Scholz. Hydrogen produced with low-to-zero carbon dioxide emissions is widely recognized as essential to achieving net-zero emissions by 2050.
By accelerating the strategic collaboration between ABB and HOI launched in 2020, the two companies are advancing the deployment of economic large-scale green hydrogen production systems to decarbonize hard-to-abate industries that address a wide range of essential needs—energy, metals, cement, utilities, ammonia, fertilizers, and fuels for aircraft, ships, trucks and rail.
The companies will leverage their respective capabilities and resources to rapidly commercialize HOI’s patented RuggedCell high-power water electrolysis technology for the world’s largest green hydrogen plants.
Global electrolyzer capacity will reach an estimated 3,100 gigawatts by 2050, according to a June 2022 report published by DNV. The group forecasts that electricity-based green hydrogen will be the dominant form of hydrogen production by the middle of this century, accounting for 72% of output.
The proceeds of ABB’s investment into KEY, led by ABB Technology Ventures (ATV), will be used to advance HOI’s intellectual property development, build up corporate capabilities for increased business activity and introduce automated manufacturing and robotics. This will accelerate the rollout of gigawatt-scale electrolyzer manufacturing.