Corporations in the energy industry understand the value in taking calculated risks because if done correctly, they might elevate to the highest level possible. At the moment, many people are beginning to appreciate hydrogen for its versatility as an energy source, and they acknowledge that demand for it is destined to increase in the future. As such, there are many companies that are putting themselves in a great position for when that time comes. Among those is Sumitomo Corporation of America, which has taken a strategic stake in Independence Hydrogen to accelerate hydrogen production and distribution growth.
Sumitomo Corporation announces its huge deal with Independence Hydrogen
The standout detail about the agreement is that Sumitomo Corporation is a Japanese company. In contrast, Independence Hydrogen is headquartered in Virginia, USA, so it might seem strange that the two are in cahoots. However, energy generation is driven by a healthy type of competition that allows companies to collaborate when they are from different nations as long as they both stand to gain from it.
After much speculation, it is Sumitomo Corporation of America (SCOA) that decided to break the ice by announcing a strategic investment in Independence Hydrogen. This is not just any other deal in the energy industry, but it signals a brand-new chapter in the expansion of hydrogen production and distribution across the United States. One of the main components behind the move is to utilize technology as a means to improve reliability, lessen expenses, and scale hydrogen’s role in the clean energy transition.
Breaking down the strategy behind the collaboration of Sumitomo and Independence Hydrogen
With Sumitomo being the company that initiated the agreement, it is clear that it had more time to strategize and plan how it could collaborate with Independence Hydrogen. Taking a strategic stake is something that the company did with the overall intention of building out additional projects in the United States that promote and rely upon Independence Hydrogen’s decentralized hydrogen (DeHy®) business model.
Independence Hydrogen is a company that does not need any introduction to the US audience because of its long-standing reputation. It currently operates a facility in Petersburg, Virginia, where it captures hydrogen that would be treated as waste during industrial processes and refines it into fuel-cell-grade hydrogen.
What is the overall feeling following the companies’ ploy to accelerate hydrogen production?
The announcement was received well by the parties involved and the general population, who can appreciate that there are companies that are willing to take massive risks to generate clean energy. A representative from Sumitomo also shed light on the effectiveness of Independence Hydrogen’s business model. On the other hand, Dat Tran, CEO of Independence Hydrogen, highlighted:
“We are extremely excited to work with Sumitomo, along with the expertise and support of our foundation investors, Suburban Propane and Hivers & Strivers, to accelerate the growth of our business.”
Reviewing the decentralized hydrogen new model of production
Just like many industries evolve, so does the energy industry in relation to how companies produce energy sources. There is an increasing number of companies that have now adopted the new model. Independence Hydrogen begins by taking loads of hydrogen, usually by-product in chemical manufacturing, and transforms it into a usable fuel. The reason why this new model is increasingly utilized is that it reduces greenhouse gas emissions that emerge from waste gas venting and creates a source of clean hydrogen for industries such as remote infrastructure and industrial gases.
The most interesting thing about the way that America is diversifying its energy portfolio is that it is doing so in various ways. For instance, it is relying on homegrown, local companies, while in some cases it is relying on collaborations.
