Modern Energy announced a $20-MM equity commitment to Colorado-based NovoHydrogen, a North American green H₂ developer. NovoHydrogen is addressing a crucial need in the global energy transition and decarbonization efforts. Although today’s global H₂ industry is already massive with demand totaling 95 MM metric tpy in 2022 or roughly 2.5% of global final energy consumption, more than 95% of current H₂ production is dependent on fossil fuel feedstocks (primarily natural gas and coal). This fossil fuel dependence and associated energy- and emissions-intensive processes present a significant decarbonization problem.

NovoHydrogen develops onsite and near-site green H₂ projects for its customers across a variety of sectors. This capital will enable NovoHydrogen to continue strengthening its team and bring its development portfolio of green H₂ projects to final investment decision and into construction. Prior to closing Modern Energy’s investment, NovoHydrogen had raised initial seed funding of $3.5 MM and formed a strategic partnership with Ohmium, a leading proton exchange membrane (PEM) electrolyzer manufacturer.

“NovoHydrogen’s Matt McMonagle has assembled an impressive executive team, and their early-market presence and thoughtful go-to-market strategy have earned them significant development momentum,” said Chris Hamilton, Chief Investment Officer at Modern Energy. “Green H₂ is emerging as an essential piece of the energy transition. NovoHydrogen has both the demonstrated experience and excellent partnership network necessary to help push the industry forward,” said Hamilton. “We are tremendously excited to partner with them to accelerate green hydrogen adoption in North America.”

Green H₂ is produced by using clean energy to split water molecules through electrolysis, producing a versatile, storable, and transportable fuel with no greenhouse gas emissions. Green H₂ has the potential to significantly reduce carbon emissions in critical sectors such as heavy industry (e.g., ammonia, refining, glass, metal, cement and steel), dispatchable power (e.g., grid-connected peakers, backup power, resiliency and microgrid) and transportation (e.g., aviation, heavy-duty fleets), making it an essential component of the ongoing energy transition. In the U.S., there is considerable regulatory support for green H₂, with the Inflation Reduction Act offering a Production Tax Credit worth up to $3/kg and the Infrastructure Investment and Jobs Act providing $8 B for clean H₂ hub development. As a member of the Pacific Northwest Hydrogen Hub, NovoHydrogen was also recently selected to begin award negotiations for the development of this site.

“During our fundraising process, we sought not only corporate capital but also a partner who shared our mission to deploy distributed green H₂ infrastructure and could help accelerate our growth. We were fortunate enough to find such a partner in Modern Energy who also provides core business operations support to NovoHydrogen as we scale our key functions like origination, project development, and project finance,” said Matt McMonagle, CEO of NovoHydrogen. “We are grateful to the first-class teams at GreenFront Energy Partners and Vinson & Elkins, who advised us during this process, and we look forward to continuing to bring cost-effective, resilient, and green H₂ to our North American customers. Finally, I wish to thank my current Board and investors for their continued support and counsel throughout this exciting process.”