Green hydrogen company Verdagy Inc. is expanding its operations to Newark.
The Moss Landing startup said the new 100,000-square-foot facility will serve as its base for large scale production and help reduce the cost of the hydrogen it sells. Operations are expected to start at the new Verdagy outpost in the first quarter of 2024.
Verdagy CEO Marty Neese told the Business Journal on Monday that the time to expand the company’s operations was due to Gov. Gavin Newsom's Hydrogen Market Development Strategy. The strategy, announced last month, aims to position California as a hub for hydrogen development and help the state in its carbon neutral goals.
"The increasing adoption of green hydrogen, coupled with its remarkable potential to drive decarbonization in heavy industries, justifies optimism that the progress we’ve made so far in green energy will continue," said Neese, who served as chief operating officer for SunPower Corp. and Velodyne Lidar Inc. "As solar and wind energy have demonstrated, early-stage incentives play a pivotal role in jumpstarting the growth of green hydrogen."
The startup has developed an industrial-scale electrolyzer, a device that separates hydrogen and oxygen out from water. The company's device, dubbed eDynamic, is designed to cut the cost of green hydrogen — hydrogen produced in sustainable ways, without the use of fossil fuels.
Hydrogen produced from emissions-free electricity costs approximately $5 a kilogram. Verdagy's intent is to bring the cost of hydrogen down to $2 a kilogram by 2026, which would put the company on track with to meet a goal set by the U.S. Department of Energy. The department's Hydrogen Program Plan aims to cut the cost of hydrogen even further by the end of the decade.
Hydrogen by itself is seen as the ultimate clean fuel that has a wide array of applications, including powering cars and manufacturing steel. However, the majority of hydrogen produced today is derived from fossil fuels and much of it is used to refine oil, according to the DOE. Verdagy is aiming its electrolyzer at companies relying on fossil fuel-produced hydrogen that want to reduce their carbon footprint.
The expansion, which is expected to double the company workforce, comes a month after the company announced a $73 million Series B funding round that was co-led by Temasek and Shell Ventures. To date, according to PitchBook Data, the company has raised $93 million and has a valuation of $380 million.
