Cleantech Startup Ayrton Energy Raises $7 Million to Tackle Hydrogen Transport and Delivery Challenges
Ayrton Energy, which is developing advanced methods for the transport of liquid hydrogen, has secured a $6.8 million seed round investment to advance its liquid organic hydrogen carrier (LOHC) technology. The company said that it will leverage the financing to scale its proprietary technology, double the size of its team, and expand operations into energy hubs in the US.
Hydrogen is viewed as one of the key building blocks of the transition to a cleaner energy future, particularly for sectors with difficult to abate emissions, in which renewable energy solutions such as wind or solar are less practical. Around 90 million metric tons of hydrogen are produced annually, although the vast majority is extracted using fossil fuels, which create pollutants and GHG emissions.
The development of clean hydrogen capacity, such as green hydrogen, which uses renewable energy to power the process to extract hydrogen from other materials, will require massive investments in areas including infrastructure, electrolysis, and transport.
One of the key requirements will be the development of new and cheaper methods of both transport and storage of hydrogen. Currently, both of those are expensive, requiring transport and storage in specially-designed tanks that can operate under high pressure or cryogenic conditions – making hydrogen fuel more expensive than fossil-based fuels like gasoline and natural gas, which are transported and stored via pipelines, railroad tank cars, and tanker trucks.
Founded by mechanical engineer Natasha Kostenuk and chemist Dr. Brandy Kinkead, Ayrton’s LOHC innovation utilizes a carrier oil that can easily absorb and release hydrogen gas. The carrier oil – along with the hydrogen – can then be stored and managed in facilities similar to those used in existing oilfield infrastructure – tanks, trucks, rail cars, and pipelines, according to the company. This method of binding the hydrogen to the carrier obviates the need for high-pressure tanks or cryogenic conditions, reducing risks associated with transport and storage, as well as lowering costs. According to the company, its system can overcome a long-time barrier to widespread deployment of hydrogen to enable the growth of hydrogen generation facilities, industrial and commercial hydrogen use and more. Ayrton is currently deploying a pilot program in Alberta, Canada, with ATCO Gas, the largest natural gas utility in the province and a leader in the hydrogen space in North America.
Natasha Kostenuk, Founder and CEO of Ayrton Energy, said:
“Enabling the widespread production of clean hydrogen will be the backbone of an emissions-free future, and we believe our industry-agnostic solution will be a step in the right direction to democratize energy access globally. We’re grateful to our amazing cohort of investors whose expertise in scaling technologies commercially will be integral as we continue to grow our customer base.”
The round was led by Clean Energy Ventures and the Business Development Bank of Canada’s investment arm, BDC Capital, with participation from Antares Ventures, EPS Ventures, SOSV, the51, and UCeed Investment Funds.
Cheri Corbett, Partner and Team Lead at BDC Capital’s Climate Tech Fund, said:
“The hydrogen sector will play an increasingly important role in decarbonizing our economy. Ayrton’s technology will enable sizable greenhouse gas reduction, and help Canada reach its 2030 and 2050 climate targets. We’re excited to play a role in supporting its management team’s impressive growth plans, which is fully aligned with our mission to support entrepreneurs like Natasha who accelerate Canada’s innovation outcomes in climate technologies.”