In wake of Devens plant opening, Electric Hydrogen obtains $100M credit
Photo | Courtesy of Electric Hydrogen
Gov. Maura Healey, Secretary of the Executive Office of Economic Development Yvonne Hao, Massachusetts Clean Energy Center CEO Emily Reichert, and Congresswoman Lori Trahan (D-Lowell) tour Electric Hydrogen’s Devens facility during the company's April 26 ribbon cutting ceremony.
Following the April opening of its Devens’ manufacturing facility, Natick-based Electric Hydrogen has gained even more access to capital, as the green hydrogen-focused manufacturer has secured a $100-million credit facility from some of the world’s largest financial firms.
The funding was led by HSBC, according to an Electric Hydrogen press release on Thursday. HSBC is a London-based bank and financial services group that is the largest Europe-based bank by total assets, according to S&P Global Market Intelligence data. Other financial institutions that are contributing to the funding include New York-based JPMorgan Chase, Missouri-based Stifel Bank, and California-based Hercules Capital.
This new corporate credit financing will be used to support the manufacturing and development of the company’s 100-megawatt electrolyzer plant, which utilize electrolysis to break down water molecules into oxygen and hydrogen, avoiding the production of carbon dioxide pollution.
In April, Electric Hydrogen officially opened a 187,000-square-foot electrolyzer production facility in Devens. Once fully operational, a single year of the factory’s manufacturing capacity will double today’s global electrolysis production capacity, according to an April press release from the company.
Electric Hydrogen has gained access to over $200 million in private capital, tax credits, and grants so far in 2024. The company received $18.4 million in federal tax credits in April and a $46.3 million grant in March, both from the U.S. Department of Energy. The company also received $50-million in private funding in March.
“For more than 150 years, HSBC has been supporting businesses as they scale and transform industries worldwide,” Matt Perlow, director of HSBC Innovation Banking, said in the Electric Hydrogen press release. “Our focus on financing innovative companies like Electric Hydrogen aligns with our mission of providing best-in-class banking services for our clients at every stage of their growth cycle. Clean technology and sustainability remain top priorities at HSBC, and we are thrilled to support Eh2’s deployment of large-scale electrolyzer plants in its mission to decarbonize critical industries.”
The company was co-founded by David Eaglesham, who is an entrepreneur-in-residence at the Bill Gates-funded Breakthrough Energy Ventures in Washington, which is seeking to eliminate industrial reliance on fossil fuels.
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