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Next Hydrogen marks progress on hydrolyzer after flurry of demos

Company has enough cash on hand for 2024 projects, according to Q1 results

Mississauga, Ont.-based electrolyzer designer and maker Next Hydrogen Solutions Inc. (NXH-X) has reached an energy efficiency milestone for its technology in 2024 after several product trials, the company summarized in its Q1 financial results.

Its electrolyzer has exceeded U.S. Department of Energy (DoE) targets for energy efficiency, and General Electric Vernova has agreed to integrate it into its systems to produce green hydrogen, Next Hydrogen announced.

Casale SA, a Swiss fertilizer company, also ordered the company’s electrolyzer in September 2023 for use in its green ammonia and methanol production systems.

“We are progressing well on all of these goals with a fully financed business plan for 2024 and looking forward to a transformative year,” Raveel Afzaal, president and CEO of Next Hydrogen, said in a release.

He previously told Sustainable Biz Canada in an interview 2024 was an ideal year for market demonstrations.  

Demonstrating the electrolyzer

The company’s electrolyzer reached a cell performance of 1.9 volts per cell at one ampere per square centimetre and 70 C. Such a performance surpasses the DoE’s current efficiency target, and prepares it for its next goal of 1.7 volts per cell at 1.2 amperes per square centimetre this year to beat the DoE’s 2026 target for electrolyzer energy efficiency.

General Electric’s sustainability-focused spinoff General Electric Vernova and Next Hydrogen signed a memorandum of understanding (MoU) in November 2023 to include an electrolyzer for producing green hydrogen. The power supply will be designed and made by General Electric Vernova.

With Casale, another MoU was inked. A purchase order was made by Casale to use Next Hydrogen’s electrolyzer for integration with Casale’s green ammonia and methanol production systems.

“The companies will bring together their collective experience and capabilities to accelerate and scale-up green ammonia and methanol plants connected to renewable energy sources,” the release states.

A repeat order for a “specialized nuclear application” valued at $7.7 million was received in October 2023. Phase 1 will see Next Hydrogen conduct design engineering, followed by Phase 2 where the electrolyzer will be provided.

A $5-million purchase order has been received for Phase 1, and a $2.7-million order planned for Phase 2. Electrolyzer delivery is scheduled for 2025.

A project with blue-chip industry partners to meet product market-fit will run to early 2025. The results will be the launch of its approximately two-megawatt initial product line and a larger-scale product line of eight megawatts per module targeting solutions over 100 megawatts. The launches will be used for near-term market demonstrations and longer-term large-scale green hydrogen systems, the company says.

Next Hydrogen builds up for commercialization

Next Hydrogen reports having $9.6 million in cash on hand as of Q1, compared to $10.9 million in Q4 2023. The amount is “sufficient capital to achieve our 2024 objectives,” the company said in its management's discussion and analysis.

Revenue reached $575,640 in Q1 as part of a customer’s development agreement, compared to $44,169 in Q1 2023.

Net loss stood at $3.4 million in Q1, equal to $3.4 million in Q1 2023.

Next Hydrogen does not expect positive cashflows over the next few years as it continues to focus on development, commercialization of new product lines and building infrastructure, the analysis document says.

Afzaal said Next Hydrogen plans to double its backlog in 2024.

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