Three Central Ohio companies developing technology to make hydrogen a more feasible competitor to fossil fuels were awarded a combined $44 million in federal grants from the Bipartisan Infrastructure Law.
They also are the only projects in Ohio among the 52 totaling $750 million in 24 states.
The program aims to lower the cost of producing "clean" hydrogen, meaning production has lower or no carbon emissions. The U.S. Department of Energy has a goal of lowering the cost to $1 per kilogram from the current $5.
The largest local grant is $30 million to Nexceris to automate aspects of producing industrial-scale electrolyzers, called stacks. Electrolysis splits water into hydrogen and oxygen.
The goal is to increase the number of units it can produce daily by more than tenfold and at a lower cost, said Geoff Merchant, director of the Nexceris electrolysis business.
"It's really going to put us on the map and be transformative hopefully for Ohio as well," CEO Kyle Shen said in a joint interview. "This is an opportunity to for us to be a world-class company based here in Ohio."
Nexceris, the DBA of NexTech Materials Ltd., was founded 30 years ago.
Tech for the electrolysis stacks grew out of Nexceris' main business in hydrogen fuel cells. The company has other subsidiaries making solid-state batteries and sensors to prevent fires in industrial lithium-ion batteries.
"Nexceris is really focused on bringing new clean energies to market; this is one of many," Shen said. "(Electrolysis) is essentially a new focus for us."
Its high-temperature electrolyzers are for large-scale industrial applications such as in chemical or steel plants, using excess heat or steam to produce hydrogen. It also can mix the hydrogen with other gases to make feedstocks for chemicals.
Nexceris' electrolyzers are 30% more efficient than existing products for the same applications, Merchant said.
If the project succeeds in displacing the older technology in the market, Nexceris would consider building a factory.
Nexceris will add about 35 jobs to its staff of 65 for the grant. The $30 million stretches over three years, and some is for subcontractors including universities and other companies.
The company's revenue was $18.6 million in 2022, according to Columbus Business First research. It has appeared several times in Business First's Fast 50 for the fastest-growing private companies by revenue, including last year.
The other two grants are to Columbus companies both founded and led by CEO Paul Matter:
- $7.2 million to PH Matter LLC: Advancing catalyst technology for larger-scale hydrogen production in the heavy-duty transportation market.
- $6.6 million to Power to Hydrogen LLC: Developing and scaling up an advanced electrolyzer design that uses lower cost materials. AEP and a group of global power companies are testing the technology this year.
Those grants also include academic and industry subcontractors.
The electrolysis technology by those two companies is not operating at the ultra-high temperatures as Nexceris' electrolyzers, so they're serving different markets.
