BP has invested in a start-up business that is working on a technique that aims to use heavy industry vapours to significantly lower the cost of producing zero-carbon hydrogen.

According to the companies, BP Ventures, the venture capital division of the British energy behemoth, participated in a $12.5 million Series A fundraising round for the American company Advanced Ionics.

Mitsubishi Heavy Industries, Clean Energy Ventures, and Gatemore Capital Management are additional investors.

Green hydrogen, created by electrolyzing water and using renewable energy, is anticipated to be crucial in the decarbonization of transportation and other industries.

However, it is currently only generated on a very small scale and is up to five times more expensive than the most prevalent hydrogen, which is made from natural gas and has a huge carbon footprint.

With the financing, Advanced Ionics will be able to quicken the introduction of its water vapour-based electrolysers for heavy industry on a small-scale.

According to Advanced Ionics, the Symbion technology reduces the amount of power needed to produce one kilogramme of hydrogen from more than 50 kWh per kilogramme using heat generated by a plant’s current operations.

According to the business, it significantly lowers the price of power used in the electrolysis process, which makes up more than 70% of the expenditures associated with producing green hydrogen.

According to the statement, the cost of green hydrogen will drop to less than $1 per kilogramme, which is less expensive than the majority of fossil fuel-based manufacturing.

A pilot project between Advanced Ionics and the Spanish oil and gas corporation Repsol is already underway.

BP is placing a significant wager on green hydrogen as it works to significantly cut its carbon emissions in the coming decades. It intends to produce between 0.5 and 0.7 million tonnes of mostly green hydrogen annually by the year 2030.

(Adapted from FlipBoard.com)