Advanced Ionics, the developer of a new category of H₂ electrolyzers useful for expanding green H₂ production, closed a $12.5-MM Series A financing led by bp ventures, with additional investors including Clean Energy Ventures, Mitsubishi Heavy Industries and GVP Climate.

The new capital will help catalyze Advanced Ionics’ growth and facilitate the initial deployment of its Symbion water vapor electrolyzer technology for heavy industry. Water vapor electrolyzers address two of the biggest obstacles to expanding green H₂ production: cost and electricity requirements.

“bp ventures’ investment in Advanced Ionics is a powerful backing of our technology’s potential to help accelerate green H₂’s future and heavy industry’s shift towards decarbonization,” said Chad Mason, CEO of Advanced Ionics. “The results we’ve achieved in our testing along with early customer interest have indicated that we are an ideal technology provider for industrial customers looking to augment, expand or replace their existing H₂ production facilities with green H₂.”

“Advanced Ionics’ technology has the potential to drive down cost and disrupt the H₂ market,” said Gareth Burns, vice president of bp ventures.

The company’s water vapor electrolyzer helps reduce the cost and electricity requirements for green H₂ production by symbiotically integrating with standard industrial processes to harness available heat. The system is made of widely available steels and other simple materials rather than expensive metals or materials common in other electrolyzers.

Electricity use accounts for more than 70% of green H₂ production costs. Advanced Ionics’ electrolyzer stack requires less than 35 kWh/kg of produced H₂ compared to more than 50 kWh/kg for typical electrolyzers. This lower electricity requirement could make green H₂ accessible for less than $1/kg at scale.

“Advanced Ionics’ technology has the potential to drive down cost and disrupt the H₂ market” said Gareth Burns, vice president of bp ventures. “bp has a global portfolio of H₂ projects, and as the world transitions to a net zero future, it’s important to us to be investing in these technologies and advance the track to deploying green H₂. We look forward to working with Advanced Ionics on the next stage of its growth.”

Advanced Ionics will use the funds to expand its team and deliver its next generation electrolyzer systems to early customers. The company is already demonstrating the efficacy of its product through a pilot program with global energy company Repsol Foundation. In addition to bp Ventures’ investment, bp will also be exploring pilot opportunities with Advanced Ionics. Other investors in Advanced Ionics include Aster, and angel investor collectives Clean Energy Venture Group and SWAN Impact Network.

H₂ is one of bp’s five transition growth engines, which also include bioenergy, convenience, electric vehicle charging, and renewables & power. bp plans to increase its investments in those businesses through this decade, while at the same time investing in today’s energy system, as it delivers its strategy of becoming an integrated energy company.