Scaling Green Hydrogen Innovation: Element One Energy

Published on 2024-10-11

Startup Story

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Element One Energy is revolutionizing hydrogen production with high-efficiency electrolyzers, overcoming deep-tech scaling challenges, and preparing for impactful pilot projects in the green hydrogen sector.

 

The Path to Founding Element One Energy: A Lifelong Journey of Innovation in Green Hydrogen

From a young age, I was captivated by renewable energy—especially wind, solar, wave power, and hydrogen. My interest in these technologies emerged long before they became mainstream, which ultimately led me to pursue a master's degree in energy and process engineering. Despite my passion for sustainable energy, I spent several years working in the oil and gas industry before launching my entrepreneurial journey in 2018. In 2021, I founded Element One Energy (EONEE), a Norwegian startup focused on creating efficient electrolyzers and fuel cells to advance green hydrogen production.

The idea behind EONEE is rooted in my long-standing exploration of electrolyzer technology. I discovered a novel way to enhance hydrogen production efficiency using rotation—a concept that had been explored before but was often plagued by complexity and reliability issues. My approach addresses these challenges, achieving high efficiency, durability, and high-pressure hydrogen production without the typical drawbacks. However, it wasn't an overnight success. Innovation, in my view, is like assembling a puzzle—each piece represents experience or knowledge, and while some attempts may fail, eventually the right combination leads to something groundbreaking. After years of persistence, I developed a highly efficient electrolyzer capable of producing affordable hydrogen.

Starting EONEE was a culmination of decades of learning and refining ideas. It took me years to find the right innovation, and many ideas were discarded along the way. With structured research and development, and support from the University of Bergen, I was able to bring EONEE’s vision to life. I don't believe in sudden "eureka" moments—successful innovation is a result of experience, patience, and continuous improvement. My prior work in engineering, combined with startup experience and a strong network of professionals, enabled me to build an outstanding founding team at EONEE. Sustainability remains my driving force, giving me the energy to push forward and continue advancing green hydrogen technologies.

 

Reducing the Cost and Environmental Impact of Green Hydrogen

I can explain some of the core advancements that significantly improve the efficiency and reduce the cost of green hydrogen production. The bulk of the cost in electrolysis comes from electricity, which makes efficiency critical in lowering production expenses. In an electrolyzer, hydrogen and oxygen are created as gases, but gas bubbles form on the surface of the electrodes, blocking new bubbles from forming. This limits efficiency. Our innovation tackles this by using centrifugal force to efficiently separate and transport these bubbles, clearing the way for new ones and increasing the overall output. It's similar to using a salad spinner to dry leaves—rotating the device separates water droplets, just as our system moves gas bubbles.

Through this method, we reduce the production cost of hydrogen by nearly two-thirds. For instance, our electrolyzer improves efficiency by 15 percentage points compared to the current state-of-the-art. This improvement, combined with high-pressure hydrogen production, eliminates the need for expensive compressors, cutting compression costs by 80%. 

 

Reducing Hydrogen’s Carbon Footprint and Transforming Heavy Industry

The environmental impact of our technology is profound, especially when using renewable electricity to power the electrolyzers, resulting in a near-zero carbon footprint. Although there’s some CO2 from the materials used in manufacturing, this is minimal compared to traditional hydrogen production methods. Today, around 96% of hydrogen is produced from fossil fuels like natural gas and coal, with only 4% made through electrolysis. Industries like ammonia production, which is primarily used for fertilizers, are major contributors to global emissions, producing 450 million tons of CO2 annually—equivalent to South Africa's total energy emissions.

Transitioning from fossil-fuel-based hydrogen to green hydrogen is critical in reducing these emissions. Green hydrogen can replace fossil fuels in industries such as fertilizers, methanol production, and refineries. Additionally, new hydrogen markets are emerging, particularly in industries that cannot be easily electrified, such as steel production, heavy-duty transportation (trains, planes, and ships), and even long-haul trucking. Hydrogen can either be used directly or as a building block for synthetic fuels like ammonia or methanol.

 

Target Markets and Flexibility of EONEE’s Electrolyzers

Our electrolyzers are particularly beneficial in applications requiring high pressure for hydrogen transportation or storage, as they eliminate the need for costly compressors, which significantly reduces expenses. Additionally, our technology is ideal for customers who don't need continuous 24/7 operation, allowing them to adjust capacity or turn off the system during periods of low energy availability, making it possible to take advantage of cheaper electricity. This flexibility, combined with a reduced physical footprint and high durability, makes our electrolyzers suitable for various sectors. Initially, we’re targeting smaller markets like fueling stations, where systems in the 5 to 10-megawatt range are common. Fueling stations are a great starting point because they currently rely heavily on compressors, and by removing them, we significantly lower operational costs while improving efficiency. As we scale, we plan to expand into larger industrial markets such as fertilizers, metal production, and oil refineries, which demand high volumes of hydrogen. Over time, we also expect to see growing adoption in transportation, including sectors like shipping and heavy-duty trucking.

There is potential for hydrogen in residential heating as well, though this market will take longer to develop cost-effectively. Although we’re still in the early phase and don’t yet have electrolyzers operating at customer sites, our technology holds a key advantage in addressing challenges with intermittent renewable energy. Traditional electrolyzers often experience degradation when operated intermittently, but we expect much lower degradation with our system, making it more suitable for fluctuating renewable energy availability. As renewable energy capacity grows, so too will energy price fluctuations, making it increasingly important to have plants that can dynamically adjust to these conditions. While traditional alkaline electrolyzers are designed for continuous operation, our solution is uniquely capable of adapting to an intermittent energy supply, positioning us to meet the evolving demands of the hydrogen economy.

 

Overcoming Challenges and Looking Ahead: The Future of Element One Energy

The response from energy and utility companies to our work at EONEE has been overwhelmingly positive, particularly regarding our efficiency improvements and innovations in reducing the use of critical raw materials like platinum and iridium. Many companies are closely following our progress as we climb the technical readiness ladder, and we’re currently inviting partners to join us in proof-of-concept projects. This phase is critical for us, as we aim to gather more data and refine our systems with real-world input. One of the most significant innovations we’ve achieved is reducing the use of critical raw materials to just 10% of what’s required in traditional proton exchange membrane (PEM) electrolyzers, which is a major point of interest for potential partners. Naturally, cost remains the most important factor for our customers, and we’ve demonstrated a 15 percentage-point improvement in efficiency compared to reference cells, reaching a technical readiness level of four. However, the journey has not been without challenges. Transitioning from a small research project to scaling deep-tech solutions is resource-intensive and time-consuming, and maintaining patience is a constant struggle. Despite this, we’re assembling a new test unit that will operate at 2 kilowatts and 15 bar G, which we plan to launch by early July, and we have a 10-kilowatt proof-of-concept project with a customer slated to start this year. By 2025, we aim to roll out a larger pilot project at 200 kilowatts, accelerating the green hydrogen value chain. Looking ahead, we believe that our contributions will help speed up the transition to green hydrogen, and programs like the Forest Valley Sandbox have played a pivotal role in our development by providing invaluable feedback on everything from technical processes to refining our pitch. Being part of a community of startups in the same domain has been instrumental in shaping our strategy and preparing us for the challenges ahead.

 

About the author

Anders Even Kvåle