H2Pro Closes $75 Million Series B Round Led by Temasek and Horizons Ventures
This round will enable the company to set up a commercial manufacturing facility, delivering utility-scale green hydrogen
Caesarea, Israel — H2Pro announces the closing of its $75 Million Series B financing. The B round was upsized and led by Temasek and Horizons Ventures with participation from existing investors such as Breakthrough Energy Ventures and multiple new strategic investors, including ArcelorMittal, Yara Growth Ventures, and Companhia Siderugica Nacional. The latest round brings total funding to $107 million.
H2Pro is developing a water splitting device, expected to reach an unprecedented 95% efficiency (42kwh/kg H2) that will cost less than an electrolyzer. The system will support renewable (intermittent) energy. Coupled with anticipated reductions in the cost of renewable energy, H2Pro believes its technology will enable $1/kg hydrogen at scale in the second half of this decade. Funds from this round will be used to support ongoing development of the technology and scale up H2Pro’s manufacturing capabilities.
Among new investors in this round is also Doral Energy. Doral and H2Pro will together build Israel’s first green hydrogen project. Using a PV facility with a 0.4MW capacity to generate green electricity and, from that, generate green hydrogen using H2Pro’s E-TAC technology. Green hydrogen will be used for energy storage.
“Green hydrogen is one of a small number of tools in the world’s decarbonization toolbox. To become a viable tool, green hydrogen needs to be cheaper — much cheaper,” said H2Pro CEO Talmon Marco. “Over the last couple of years, we’ve made tremendous progress, and with this round of funding we’re not only on track to deliver on our promise of cheap green hydrogen technology, but we will also be able to setup manufacturing.”
“As a result of H2Pro’s unprecedented efficiency, we believe that they can be the disruptive technology that the hydrogen economy needs right now” said Patrick Poon, Horizons Ventures. “By bringing costs down, H2Pro will start making it more economical to use green hydrogen to reduce emissions across many different industries.”
“The potential green hydrogen holds to deliver deep decarbonization of the steelmaking process is well understood. Although the technology required to directly reduce iron ore using hydrogen still needs to mature, the greater challenge with this new method of ironmaking is the cost and availability of the energy input — green hydrogen” said Pinakin Chaubal, Chief Technology Officer at ArcelorMittal. “Given H2Pro’s focus on developing a novel technology which aims to produce green hydrogen in an energy-efficient manner at competitive costs, it is a very welcome and natural addition to our XCarb™ innovation fund investment portfolio. Although at an early stage, E-TAC is a very exciting technology and we look forward to working with the H2Pro team as it seeks to move into commercial production.”
To learn more, visit us at www.h2pro.co.
Founded in 2019 and based in Caesarea, Israel, H2Pro develops E-TAC — a revolutionary method for producing green hydrogen by splitting water that is over 95% efficient, safe and cost-competitive with fossil-fuel hydrogen.
H2Pro’s technology, known as E-TAC (Electrochemical — Thermally Activated Chemical), uses electricity to split water into hydrogen and oxygen. However, unlike electrolysis, hydrogen and oxygen are produced at separate steps. This eliminates the need for a costly membrane, allows for a simpler construction and significantly lowers power consumption compared to electrolysis.
H2Pro is backed by leading investors and strategic partners, such as Breakthrough Energy Ventures, Temasek, Horizons Ventures, ArcelorMittal, Yara Growth Ventures, Hyundai, Sumitomo Corporation and New Fortress Energy. E-TAC is based on years of research conducted by its founding team at the Technion, Israel Institute of Technology. H2Pro is the winner of Shell’s 2020 New Energy Challenge.
Temasek is a global investment company with a net portfolio value of S$381bn (US$283bn) as of 31 March 2021. Headquartered in Singapore, it has 13 offices in 9 countries around the world. The Temasek Charter defines Temasek’s three roles as an Investor, Institution and Steward, which shape its ethos to do well, do right, and do good. As a provider of catalytic capital, it seeks to enable solutions to key global challenges. With sustainability at the core of all Temasek does, it actively seeks sustainable solutions to address present and future challenges, as it captures investible opportunities to bring about a sustainable future for all. For more information on Temasek, please visit www.temasek.com.sg.
About Horizons Ventures
Horizons Ventures was co-founded by Solina Chau and Debbie Chang in 2005. It is known for backing era-defining companies making lasting and positive impact in the world. Amongst its string of notable early stage investments are Zoom, Impossible Foods, Perfect Day, Spotify, Siri and DeepMind, reflecting Horizons Ventures’ methodical long-term investment approach.