In a deal that could reshape the hydrogen sector completely, Electric Hydrogen has announced it has acquired Ambient Fuels. Additionally, it secured a new financing arm to deliver crucial funding for large-scale projects. A growing demand for clean and green hydrogen has been evident in the global market, and by acquiring Ambient Fuels, Electric Hydrogen has positioned itself as a potential market leader in the hydrogen sector. Hydrogen remains the most viable and sustainable energy resource on the planet.
The deal represents a match made in hydrogen heaven
Electric Hydrogen is one of the world’s leading electrolyzer manufacturers, and Ambient Fuels was a global leader in hydrogen project development, so the acquisition by Electric Hydrogen could not have been set up better. It’s a marriage of two of the biggest players in the hydrogen game. The deal will strengthen the company’s ability to partner with customers on the co-development of hydrogen projects, as well as provide crucial funding where deemed necessary.
As part of the deal, Electric Hydrogen agreed to enter into a strategic relationship with Generate Capital, a former investor in Ambient Fuels and a leading infrastructure investment platform. The former CEO of Ambient Fuels praised the acquisition by Electric Hydrogen and underscored the growing demand for American-made products in the energy sector overall.
“We’re thrilled to join the Electric Hydrogen team. With this unique project finance capability from Generate Capital, our team is well positioned to support Electric Hydrogen customers who prefer to buy renewable hydrogen as a process input rather than building and operating their own renewable hydrogen plants. We believe this is a key ‘unlock’ for the nascent renewable hydrogen and renewable fuels industries that will help customers get to scale faster, enabled by Electric Hydrogen’s leading technology.” – Jacob Susman, former CEO of Ambient Fuels now leading project development at Electric Hydrogen
The acquisition opens up new avenues for exploration for Electric Hydrogen
It’s rare for a business acquisition to make this much sense. Electric Hydrogen made a masterful move by sealing the deal to purchase Ambient Fuels, which will now enable the company to diversify its portfolio as well as invest, originate, and develop new projects across the globe. The deal offers Electric Hydrogen up to $400 million in hydrogen project finance solutions that they can choose to allocate where they deem necessary.
Not to be left behind, Generate Capital also released a statement that underscores the importance of hydrogen financing across the globe.
“Generate Capital is determined to accelerate the transition to low-carbon molecules by offering leading project finance capabilities in close collaboration with skilled developers and innovative technologies. Working with Electric Hydrogen, we can help solve current finance and bankability challenges and reduce LCOH, enabling more hydrogen projects to reach Final Investment Decision.” – Scott Gosselink, Managing Director at Generate Capital
Lastly, and most crucially, Electric Hydrogen released a statement that outlines its perception of the acquisition.
“Clean hydrogen is poised for significant growth in the years ahead, supported in part by the RED-III compliance framework in the E.U. and the 45V hydrogen production tax credit in the U.S. We believe this new integration will both enable the industry to scale faster and give Electric Hydrogen even more ways to serve our diverse array of customers. We’re excited to add this new capability with Ambient Fuels and Generate Capital.” – Raffi Garabedian, CEO and Co-founder of Electric Hydrogen
The deal provides the hydrogen sector with crucial financial backing to accelerate growth
The hydrogen sector has seen tremendous growth in the past few years, and according to the International Energy Agency, that growth is forecasted to continue in the years to come. Hydrogen is the most abundant element in the universe, and it just needs some innovative thinking to develop the potential that it has stored away. The acquisition of Ambient Fuels by Electric Hydrogen underscores the importance that hydrogen plays in our everyday life and will only continue to grow as time passes by.
