Hydrogen start-up Verdagy raises $25 million

Verdagy, a start-up developing a membrane-based water electrolysis process for making green hydrogen, has raised $25 million in a financing round led by TDK Ventures. Other investors include the venture arms of the potential green hydrogen users BHP, Orbia, and Shell. California-based Verdagy was spun off last year from another membrane start-up, Chemetry, which is developing a new ethylene dichloride technology. Verdagy’s technology is based on very large anion-exchange membrane cells. The “secret sauce” of the technology, CEO Marty Neese says, is its architecture, which allows the cells to dissipate heat and handle high gas volumes. He says Verdagy’s cells can handle greater charge densities than alkaline water electrolysis cells and can be produced at larger sizes than proton-exchange membrane cells. The company has a demonstration cell running in Moss Landing, California, and plans to install 10 commercial cells, with total capacity of 2 MW, by year-end. The company aims to produce hydrogen for $2 per kg. Hydrogen made by the reforming of natural gas costs about $1.50 per kg, Neese says.