Hydrogen Optimized Signs Letter of Intent with Industrial Company to Supply More Than 40 MW of Large-Scale Hydrogen Production Capacity

Unique cost-effective scalability of Hydrogen Optimized’s RuggedCell(TM) water electrolyser cited as key factor leading to agreement

Hydrogen Optimized, a subsidiary of Key DH Technologies Inc., today announced that it has entered into a confidential Letter of Intent (“LOI”) with a large industrial company to provide more than 40 MW of RuggedCell(TM) water electrolyser capacity for hydrogen production.

The LOI provides for high current unipolar RuggedCell(TM) systems to be deployed at one or more sites by the company, which plans to roll out hundreds of megawatts of electrolyser capacity over time. It also specifies that the installed systems could be scaled up as demand for hydrogen grows.

“The signing of this LOI is a significant step forward in our commercialization process,” said Andrew T. B. Stuart, President and CEO of Hydrogen Optimized. “A key factor underlying the agreement is our system’s unique capability to double or more in capacity without requiring the installation of costly additional electrical and other equipment.”

Stuart added, “More and more potential clients tell us they are looking for a water electrolysis system that can be economically deployed in the tens of megawatts and can be expanded at a relatively low incremental cost as the MW rating of the project grows. The RuggedCell(TM) system makes this possible as it requires fewer power conditioning units to accommodate expansion. This contrasts with small module systems that must be fully replicated to increase output, and therefore cannot gain economies of scale.”

RuggedCell(TM) water electrolysis technology was designed from the start to offer important capabilities which were missing in the market. These include:

– The use of low-cost materials that, unlike many other electrolysers in the market today, are free of iridium and other highly expensive platinum group metals;
– Ease of mass manufacturing;
– High-current architecture that uniquely enables individual hydrogen production modules in the hundreds of megawatts each; and
– The proven capability of RuggedCell(TM) electrolysers to ramp from zero to 50,000 amperes in under 10 seconds and then very quickly reduce the current to any level, even down to zero amperes. This capability supports the system’s integration with intermittent renewable energy sources such as wind or solar, and with use on grids or micro-grids with widely varying power availability.

The main driver behind the mass deployment of water electrolysis is the need to reduce the carbon intensity of hard to abate industries such as ammonia, cement, methanol, steel, heavy duty transportation and other fossil fuel-intensive applications. Hydrogen produced with low to zero carbon dioxide emissions is widely recognized as key to achieving “net zero” emissions by 2050. To that end, recently the World Hydrogen Council called for hydrogen to contribute over 20% toward global carbon abatement by 2050.

Woodside Petroleum unveils plans for $1 billion hydrogen and ammonia plant in Kwinana

Woodside’s H2Perth hydrogen and ammonia plant would produce up to 1500 tonnes of hydrogen every day at full capacity. (Supplied: Woodside)

Oil and gas giant Woodside has announced plans to build a hydrogen and ammonia production hub on government land south of Perth, sparking debate over the project’s green credentials.

  • Woodside says the project will position WA as a clean energy powerhouse
  • But the Conservation Council of WA has raised questions about the project’s green credentials
  • An expert says there is nothing wrong with Woodside’s staged approach to green hydrogen

While the company and WA Premier Mark McGowan said the $1 billion project, dubbed H2Perth, would position WA as a global clean energy powerhouse, the facility was not going to be entirely ‘green’.

Mr McGowan said the facility would be built on about 130 hectares of vacant industrial land, commercially leased from the state government.

Woodside CEO Meg O’Neill said the phased development would, at full potential, produce up to 1500 tonnes of hydrogen per day for export in the form of ammonia and liquid hydrogen.

Woodside chief executive Meg O’Neill says H2Perth would be a landmark project, both for Woodside and WA

“The land being leased from the state government in the Kwinana and Rockingham areas is ideally located close to existing gas, power, water and port infrastructure, as well as a skilled local residential workforce,” Ms O’Neill said.

“H2Perth is designed to be net-zero emissions for both Woodside and its customers, supporting Woodside’s corporate emissions reduction targets and the Paris Agreement goals of customers in the region.”

A comparison of production process for the “blue” and “green” types of hydrogen. (Supplied: Woodside)

The first phase of the project would produce mostly “blue” hydrogen and around a third “green”.

Blue hydrogen is still produced using fossil fuels but the carbon dioxide is captured and stored or offset, while green hydrogen is produced from electrolysis powered by renewable energy.

In this case the hydrogen will be produced from natural gas and Woodside says 100 per cent of the project’s carbon emissions would be abated or offset.

The project is partly considered green because it would use electricity generated by renewable energy through the South West Interconnected System, which includes rooftop solar power.

“H2Perth will also facilitate substantial growth of renewables in Western Australia by providing to the grid a flexible and stabilising load that benefits uptake of intermittent renewable electricity by households and local industry,” Ms O’Neill said.