Hydrogen Optimized, a subsidiary of Key DH Technologies (KEY), has been awarded an over $3.5-MM repayable contribution from the Government of Canada, through the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), to automate and expand its RuggedCell water electrolyzer manufacturing capacity in Owen Sound, Ontario.

The funds will go toward an $11-MM project that will increase RuggedCell electrolyzer production at the company’s Owen Sound manufacturing facility five-fold to 5,000 electrolyzer units per year of clean H₂ production systems and create 50 high-quality full-time jobs.

Hydrogen Optimized’s patented RuggedCell water electrolyzers are the core components of the company’s large-scale clean H₂ production plants. With technology that is highly differentiated from other systems in the marketplace, the RuggedCell is uniquely capable of creating the world’s largest water electrolysis modules for major industrial applications.

“With support from FedDev Ontario, our manufacturing scale-up will provide Hydrogen Optimized with the capability to supply RuggedCell systems to the world’s largest clean H₂ projects,” said Andrew T.B. Stuart, President and CEO, Hydrogen Optimized. “We thank the Government of Canada for helping us to accelerate RuggedCell output and reduce manufacturing costs through cutting-edge automation.”

The two-year project, which began in December 2022, will build on the company’s existing capability to provide RuggedCell systems. In addition to the FedDev Ontario investment, the expansion is being funded with private investment along with financial support from the Government of Ontario.

“With this investment, Hydrogen Optimized and their dedicated workforce will continue to build on their potential and establish the company as a key manufacturer in the global energy market,” said the Honorable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario. “Our government is pleased to support the growth of clean energy and innovative technology so we can work together to create good jobs for rural communities and build a greener and more sustainable future for Canadians.”

Hydrogen Optimized’s strategic commercialization partner ABB provides robots for manufacturing automation, high-power rectifiers paired with RuggedCell electrolyzers, and other equipment required for large-scale clean H₂ systems. The partnership includes a 2022 equity investment by ABB that has been instrumental in leveraging government support for product development and manufacturing.

“This manufacturing project is critical to advancing the commercialization of Hydrogen Optimized for success in world markets,” said Michael Marti, Global Business Line Manager – Growth Industries, ABB. “In the year since our companies formed a strategic partnership, H₂ Optimized has made significant progress in its pursuit of the global clean H₂ opportunity and continues to improve its position for success in the large-scale segment.”