BP Partners with Green Hydrogen Startup to Drive Fuel Cost Savings Initiative

BP Ventures, the venture capital arm of the British energy conglomerate BP, has emerged as a key participant in a $12.5 million Series A funding round for Advanced Ionics, a US-based technology startup. This strategic investment marks BP's entry into a venture that envisions leveraging vapor emanating from heavy industries to significantly curtail the production expenses associated with generating zero-carbon hydrogen. In an announcement on Tuesday, BP Ventures disclosed its role alongside a consortium of investors, including Mitsubishi Heavy Industries, Clean Energy Ventures, and GVP Climate, who are collectively investing in the transformative potential of Advanced Ionics.

Green hydrogen, a crucial component in the endeavor to decarbonize transportation and industries, is derived through the process of electrolysis—splitting water into its constituent elements using renewable energy sources. Although pivotal in the shift toward sustainable energy, the current production scale of green hydrogen remains relatively limited, and its costs can escalate to nearly five times that of conventionally produced hydrogen sourced from carbon-intensive natural gas.

The funding infusion stands to expedite the implementation of Advanced Ionics' inventive technology named Symbion. This innovative solution harnesses the waste heat generated by industrial operations to drive electricity consumption to under 35 kilowatt hours (kWh) per kilogram of hydrogen. In comparison, a conventional electrolyzer requires more than 50 kWh per kilogram. By significantly curtailing electricity consumption, the Symbion technology profoundly slashes the electricity-related expenditures, which constitute over 70% of the overall production costs for green hydrogen.

Advanced Ionics' trailblazing approach promises to drive down the cost of producing green hydrogen to below $1 per kilogram, rendering it more cost-effective than conventional fossil-fuel based production methods. Notably, Advanced Ionics is already engaged in a pilot program with Repsol, a prominent Spanish oil and gas company. This collaboration underscores the practical viability of the technology, as it undergoes real-world testing within an industrial setting.

For BP, a company committed to a substantial reduction in its carbon emissions in the coming decades, this investment carries profound implications. Demonstrating its strategic focus on sustainable energy solutions, BP is placing a significant bet on the potential of green hydrogen. By the year 2030, BP has set ambitious targets to produce an annual volume of 0.5 to 0.7 million tonnes of predominantly green hydrogen, a testament to its commitment to fostering innovative solutions in the sustainable energy landscape.

The collaboration between BP Ventures and Advanced Ionics holds the potential to reshape the landscape of hydrogen production, offering a viable pathway towards affordable and sustainable green hydrogen on a more significant scale. As industries and economies pivot towards greener alternatives, ventures of this nature stand as pivotal drivers of transformative change in the global energy paradigm.