“Dirt Cheap” Hydrogen Production Is Nearly Here

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Photo Credit: https://www.pveurope.eu/energy-storage/green-hydrogen-affordable-2035

SGH2 Energy is making waves for manufacturing green hydrogen. SGH2’s technology is a solution for both climate change and waste management by producing “greener than green” hydrogen from any kind of waste.

Compared to other green hydrogen producers, SGH2’s process displaces 23–31 tons of carbon dioxide (others displace 10–12 tons) and requires only 1.8 kWh per kg of hydrogen (others require 62 kWh per kg of hydrogen). To put it simply, SGH2’s hydrogen production costs are projected to be $2 per kg of hydrogen, which is 5–7 times cheaper than other green hydrogen producers’ and cost competitive with the dirtiest hydrogen. Bloomberg New Energy Finance estimates that clean hydrogen could reduce up to 34% of carbon emissions from fossil fuels and industry.

The city of Lancaster, CA is one of SGH2’s first pilot programs. SGH2 will be building the world’s largest green hydrogen facility in Lancaster, CA. This facility will operate 24/7, 8000 hours a year, producing 11,000 kg of green hydrogen per day, or 3,800 tons of green hydrogen per year — 3 times larger than any other green hydrogen facility. The Lancaster plant will process 40,000 tons of waste annually, and will save the city $50–75 per ton annually in landfilling and landfill space costs.

Other governments are currently revisiting their plans to transition to renewable energy. RenewableUK estimates that renewables could provide more than 75% of the UK’s power needs, which includes an opportunity for clean hydrogen to replace fossil fuels. The European Commission has proposed Next Generation EU, borrowing €750 billion to support the transition to renewable energy, incentivizing an increase in renewable energy projects, including kick-starting a clean hydrogen economy in Europe.

Due to successful smaller scale pilots and the current opportunities, SGH2 is positioned to launch projects all over the world. New construction is poised to provide thousands of jobs, catering to high unemployment rates. SGH2’s design is built for rapid scale, at lower capital costs and does not require much land, compared to solar or wind power.

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Impact Investment Analyst at One World | Startup Weekend Facilitator | Climate Tech Enthusiast

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