5 Hydrogen Electrolyzer Startups to Watch in 2024

Hydrogen electrolyzers are critical components in hydrogen production using water electrolysis.

However, the main challenges with current electrolyzer technologies are costs, limited efficiency, and durability under continuous operation. These challenges hinder hydrogen’s widespread adoption as a key player in energy systems.

Green hydrogen’s viability as a sustainable fuel alternative depends on developing innovative electrolyzers that improve efficiency, cut costs, and extend lifespan.

Modern hydrogen electrolyzers are significantly improved over traditional methods. They offer a way to transition to green hydrogen production for sectors like transportation, industry, and power generation, where decarbonization is critical.

This article explores five growth-stage startups making significant strides in advancing hydrogen electrolyzer technology. These startups have the potential to grow rapidly, are in a good market position, or can introduce game-changing technology to the market in the next 2-3 years.

This makes them a great option to partner, collaborate, or acquire.

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1. Hysata Developed High-Efficiency Electrolyzer for Green Hydrogen Production

Founding Year	2021
Headquarters	New South Wales, Australia
Total Funding Amount	A$42.5 Million
Last Funding Round/Amount	Series A/A$42.5 Million
Website	https://hysata.com/

Current electrolyzer technology in green hydrogen production has inefficiencies, high costs, and scalability challenges. The existing electrolyzer systems suffer from moderate efficiency levels, high complexity, significant costs, and difficulties in scaling.

These issues hinder the broader adoption of green hydrogen to decarbonize sectors. Industries like steel, chemicals, and heavy transportation also face difficulty transitioning away from fossil fuels.

To overcome these problems, Hysata developed a high-efficiency electrolyzer that drastically improves the production process of green hydrogen. Its electrolyzer technology boasts an unprecedented 95% efficiency rate, significantly reducing energy consumption to just 41.5 kWh per kilogram of hydrogen produced. Existing systems have a 52.5 kWh/kg efficiency at 75% efficiency.

Hysata’s electrolyzer features a simplified, low-cost balance of plant (BOP), modularized design, and earth-abundant materials.

Founder, CEO, and Director Paul Barrett leads this startup with extensive experience in directorial and managerial roles in multiple companies.

Hysata secured A$42.5M in a Series A round raised on August 1, 2022. Virescent Ventures led the round, which included six other investors.

2. Newtrace Membraneless Electrolyzer Reducing the Hydrogen Production Cost

Founding Year	2021
Headquarters	Bengaluru, Karnataka, India
Total Funding Amount	₹544 Million
Last Funding Round/Amount	Seed/₹467 Million
Website	https://www.newtrace.io/

The primary problems in the hydrogen industry are the high cost and environmental impact of current hydrogen production methods. These methods often rely on rare earth metals and complex processes, resulting in a substantial carbon footprint and high operational costs.

Newtrace has developed a line of “membrane-less” electrolyzers that tackle these problems by utilizing a patent-pending precision fluid engineering design for gas separation.

The electrolyzers achieve this separation by using the flow of water, eliminating the need for a membrane. This design simplifies the electrolysis process and reduces the risk of operational failures related to membrane degradation.

The technology allows the production of ultrapure hydrogen with minimal processing and reduces the number of core components required by 70%. It eliminates the use of rare earth metals, leading to a 30% reduction in manufacturing costs. The electrolyzers use abundant earth metal-based electrocatalysts.

Co-founder & CEO Prasanta Sarkar is leading this startup with his 9+ years of experience in the Aerospace industry.

He holds a Ph.D. (fluid mechanics and energy) from Université Grenoble Alpes (UGA) and a Master of Science (MS) in Aerospace Engineering from The University of Manchester.

The startup raised ₹467 million in a Seed round led by Peak XV Partners and five other investors on May 31, 2023.

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3. Hymeth Replacing PEM Electrolyzers with Alkaline Hyaeon™

Founding Year	2016
Headquarters	Søborg, Denmark
Total Funding Amount	$1.2 Million
Last Funding Round/Amount	Pre-seed/$750K
Website	https://hymeth.com/home

High costs, inefficiencies, and material challenges are problems associated with traditional green hydrogen production methods. The existing electrolyzers, often based on Proton Exchange Membrane (PEM) technology, are expensive due to their reliance on rare and costly catalysts like platinum or iridium.

These electrolyzers are also typically large, energy-intensive, and limited to a hydrogen compression level of around 30 bar, complicating storage and distribution.

HYMETH developed the Hyaeon™, a low-temperature, high-pressure alkaline electrolyzer, to solve these problems. It is a more cost-effective and efficient alternative to PEM electrolyzers.

This innovative product has a non-precious alloy electrocatalyst, significantly reducing reliance on expensive materials. Hyaeon™ is designed to be compact and modular and capable of delivering highly compressed gas directly. It eliminates the need for external compressors and reduces the system’s physical and environmental footprint.

Hyaeon™ differentiates itself with a 90% cell-level efficiency and the ability to produce hydrogen at a cost 25% lower than that of existing alkaline electrolyzers.

The compact and modular design, with a built-in cooling system and hydraulic unit, reduces capital and operating expenses.

It is suitable for fuel cell vehicle refilling stations, the process industry, sustainable steel production, bio-oil refineries, and energy storage.

Mats Blacker is the CEO leading the Hymeth towards a green future. He has 20+ years of experience in CEO, Managing Director, and County manager roles.

The startup raised $750K in its latest pre-seed funding round on October 15, 2021. It is backed by Antler, one of the most active venture capital firms.

4. Next Hydrogen Developed Water Electrolyzer to Replace Alkaline Electrolyzers

Founding Year	2008
Headquarters	Mississauga, Ontario, Canada
Total Funding Amount	$10.1 Million
Last Funding Round/Amount	Grant/$5 Million
Website	https://nexthydrogen.com

Traditional hydrogen production methods, primarily steam methane reforming, are expensive and contribute to greenhouse gas emissions. The need for a sustainable, cost-effective solution to harness renewable energy sources for hydrogen production is growing.

The Next Hydrogen has developed advanced water electrolyzers to replace existing alkaline electrolyzer cell designs. Its technology allows MW-scale hydrogen production, leveraging a unique cell design architecture that doubles the current density using the same active surface area.

This design removes the fluid-gas flow restrictions found in traditional electrolyzers, enabling higher efficiency and operational flexibility.

The electrolyzers can generate more Hydrogen using fewer or smaller units, effectively capturing the full potential of intermittent renewable energy sources like wind and solar.

Next, Hydrogen’s technology offers faster ramp-up rates, high scalability, and cost-effectiveness. Its electrolyzers can manage fluid and gas flow at a cellular level, enabling quicker response times to fluctuations in renewable energy availability, unlike traditional systems that rely on external gas-liquid separators.

Raveel Afzaal is the President & CEO, leading this startup with a team of hydrogen industry experts. Mr. Afzaal possesses extensive expertise in capital markets and has a decade of experience in equity research focusing on sustainability and industrial technologies.

He holds a Bachelor of Mathematics and a Bachelor of Arts in Economics from the University of Waterloo, and he is a certified CFA charter holder.

Next Hydrogen received a $5 million grant on February 17, 2023, from Sustainable Development Technology Canada, its single investor.

5. HYGN Energy Producing Hydrogen from Distilled Water with HY-EL Electrolyzer

Founding Year	2022
Headquarters	Aurora, Ontario, Canada
Total Funding Amount	Undisclosed
Last Funding Round/Amount	Undisclosed
Website	https://www.hygnenergy.com/

Reducing carbon emissions requires reducing reliance on fossil fuels and, thus, more green energy solutions. By focusing on hydrogen technologies, HYGN Energy is tackling the problems of inefficient fuel consumption and the high carbon footprint associated with conventional fossil fuel usage.

The startup has developed Alkaline Electrolyzer Solutions and hydrogen hybrid engines that convert distilled water into hydrogen for use in vehicles or generators. These engines use electrolyzed hydrogen from distilled water for fuel-efficient combustion.

HYGN also developed products like the HY-EL Alkaline Electrolyzer, which produces hydrogen at 0.2 Kg/Day and has an outlet pressure of under 15 PSI. With custom configurations, it can reach up to 700 PSI.

What sets HYGN Energy’s technology apart is its modular, scalable design, ease of installation, low maintenance, and the ability to be expanded easily with remote monitoring support. It offers up to 30 percent fuel savings and reduces fuel emissions by 60 to 80 percent.

Tom Ross is the Founder and CEO of this innovative green hydrogen startup. He leads a team of experts with 10+ years of experience in operational roles in scaling startups. His educational background, including a Bachelor of Engineering (B.Eng.) in Energy Systems Engineering from the University of Ontario Institute of Technology, helped him easily understand and lead the industry’s technicalities.

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Authored By: Naveen Kumar, Market Research