New Reactor Design Is A Gamechanger For Green Hydrogen

The total market potential of hydrogen technology could reach $11 trillion by 2050, with major advancements and falling production costs, says Bank of America, which firmly believes “we are reaching the point of harnessing the element that comprises 90% of the universe, effectively and economically”.  

This year, in particular, has seen major momentum …

Germany and Norway have agreed to build a hydrogen pipeline as a replacement for Russian natural gas and coal. 

Australia’s hydrogen project pipeline is one of the biggest in the world, with 12 million tons per annum-the bulk of which is green, or clean, hydrogen, according to Wood Mackenzie. 

In the U.S., McKinsey sees potential for the Gulf Coast-led by Houston-to become the world’s leading clean-hydrogen hub by 2030. Hydrogen could be far bigger than LNG, even. Texas alone, could see demand for hydrogen top 21 million tons per annum by 2050. 

“The effect would be significant: a clean-hydrogen hub could possibly generate around $100 billion in additional GDP by 2050 for Texas,” McKinsey says. 

Washington is also pouring money into hydrogen projects. 

The catalysts are lining up with phenomenal momentum, and there is a logical reason for this: 

Of all our climate change efforts, JP Morgan says hydrogen will be the “pivotal” source of energy over the coming decades, with both nuclear fusion and carbon capture, utilization and storage (CCUS) “unlikely to have a significant impact prior to 2030. 

Now, with all eyes on the real innovators here, a high-tech hydrogen breakthrough by privately-held GH Power opens another door in this burgeoning $ 11 trillion industry that’s created a hydrogen bull market. 

Reactor Hydrogen for North America

North America is desperate for hydrogen breakthroughs, and GH Power‘s new renewable energy technology is one of the latest. The technology uses exothermic reactions with only two inputs (end of life or recycled aluminum and water) to create three extremely valuable green outputs: hydrogen, alumina (aluminum oxide), and exothermic heat. 

The process uses recycled scrap aluminum as the key input. That aluminum is then mixed with water through a proprietary reactor designed to continuously operate to produce hydrogen, alumina, and exothermic heat (power) with zero emissions, zero carbon, and zero waste. That earns it a Carbon Intensity Score of -39 ( Based upon 3^rd Party Report). 

The reactors are scalable and modular, which means they can be designed and built for small or scalable large power requirements with last-mile delivery. This advanced technology is simple to permit, build, operate and integrate with other industrial processes, even in remote areas. 

The reactor plant’s environmental footprint is extremely light: Each plant can fit up to 27 megawatts of green energy into a space that occupies only 2,000 square meters. 

GH Power is planning to develop a plant which produces 11,700 Tonnes of green hydrogen per year to fuel a 30-MW combined cycle plant with a net output of 27 MW.  

Led by world-class engineers with over 100 years of combined experience operating power plants, refineries, and other energy infrastructure, GH Power’s 2MW demonstration commercial reactor will start generating revenues in the second quarter of next year, and this is only the beginning. GH Power has a pipeline with blue-chip strategic partners to build out large-scale hydrogen power plants in North America and Europe. 

Its technology has won it global recognition, with a green technology grant in partnership with Germany’s RWTH Aachen University, sponsored by the Canadian and German governments. 

Finally, Low-Cost Hydrogen

GH Power’s reactor is self-sustaining, zero emission, and is a net producer of energy for consumption.  

Most importantly, it’s a North American first: It’s cost-competitive with conventional fossil fuels.

And the reactor’s value extends far further than this …

It process also produces green hydrogen, exothermic heat, and green alumina, which has numerous commercial applications used for everything from lithium-ion batteries and LED lighting to semiconductor production.

Green hydrogen produced from electrolysis costs about 3X more than hydrogen produced from natural gas, with the U.S. Department of Energy averaging green hydrogen at about $5 per kilogram. The enormous amount of money pouring into green hydrogen right now is intended to bring the cost down by 80% to $1 per kilogram within 10 years. 

So not only does GH Power say its reactor is already 60% cheaper than producing hydrogen by the currently most common method of electrolysis, but it’s also producing two other valuable green outputs for the market: exothermic heat that can be put back on the grid, and green alumina. 

The green alumina output is produced 85% cheaper than existing production processes of hydrochloric acid leaching and hydrolysis. 

GH Power’s technology is producing green hydrogen for 60% less than the current dominating process, thanks to its proprietary technology, which relies on only two inputs, water, and recycled aluminum, which is widely available everywhere for as little as $1.50/kg.

GH Power’s reactor also produces green alumina for 85% less, it’s also going to play a role in decarbonization. The 27MW plant could produce 1.2 million tonnes of carbon offset every year. 

That’s a huge amount of carbon offset revenue potential considering that 1 metric ton of carbon offset costs between $40 and $80. 

Flipping The Switch On The First Reactor

Phase 1 testing at GH Power’s first reactor in Hamilton, Ontario, has been completed, and Phase 2 testing was launched in late June. Phase 2 testing is preparation for commercial operations, which expect to be generating revenues by the second quarter of next year. 

Phase 3 moves to continuous operations of the 2MW reactor and integration into the final modular reactor design for a large-scale solution. 2MW Reactor Schedule is shown below:

The faces behind this green hydrogen breakthrough are major forces in the energy industry, led by CEO Dave White, a veteran engineer, and Chief Engineer Ken Stewart who has designed and managed thermal power plant and petrochemical processes across North America. COO Gary Grahn also has 25 years of international energy experience including in oil, gas, minerals, metals and utilities, CFO Anand Patel contributes a decade of real asset capital markets experience, with over $4 billion in completed transactions, including for renewable energy giant Brookfield Asset Management, and Development Director Mike Miller is a former NextEra Energy figure with decades of infrastructure and private equity experience. 

Together, they are releasing a breakthrough into a world starved for progress in the energy transition-progress that hydrogen is best suited to make. Other companies in the hydrogen space that might be worth looking into from an investment perspective:

Air Products and Chemicals, Inc. (NYSE:APD) is a well-established name in the industrial gas sector, now making significant strides in the hydrogen market. Their move into creating integrated hydrogen systems shows their adaptability and forward-thinking approach. They’re not just looking at producing hydrogen; they’re envisioning a sustainable energy ecosystem.

Their extensive experience provides a competitive edge. Few companies can boast expertise in both production and distribution of industrial gases. With hydrogen set to play a major role in future energy scenarios, their comprehensive solutions offer both reliability and scalability, essential in today’s rapidly evolving energy landscape.

Investing in Air Products and Chemicals means backing a company with a strong heritage and a clear vision for the future. As the global focus shifts towards hydrogen, their end-to-end approach to hydrogen technology makes them a compelling narrative in the hydrogen story and a potentially lucrative choice for investors.

Ballard Power Systems Inc. (NASDAQ:BLDP) is a pioneer in the fuel cell industry, especially known for their advanced proton exchange membrane (PEM) technology. They’re making a significant impact in various transportation sectors, including buses and trains. This puts Ballard at the forefront, not just as a producer but as a major influencer in the green transportation movement.

The company’s influence and technological advancements offer great potential for growth, especially as the world is increasingly focusing on sustainable energy and cleaner transportation methods. Investors looking at Ballard will see a company that’s not just following trends but setting them up, which could lead to an increase in demand for their technology.

Ballard’s broader vision and commitment to sustainability align well with global environmental goals. This makes them a compelling choice for investors who are looking to support a company that’s driving change in the industry and helping to shape a more sustainable future.

Linde plc (NYSE:LIN), with its rich history in the industrial gas domain, is making commendable strides in the hydrogen space. Their holistic approach encompasses every aspect of hydrogen, from production to infrastructure. This deep commitment demonstrates their genuine dedication to advancing hydrogen technology.

Their global presence gives them a distinct advantage. Linde isn’t just producing hydrogen; they’re actively setting up infrastructure, partnering on various projects, and engaging in research and development to further enhance their capabilities. This proactive stance in the hydrogen revolution sets them apart from competitors.

For investors, Linde offers a blend of stability and innovation. Their extensive experience, combined with a proactive approach to hydrogen technology, suggests steady growth and visionary leadership in the industry. Linde represents a balanced investment option in a market that values both historical success and future-oriented innovation.

Cummins Inc….