NEWS

Ayrton Energy Raises $6.8 Million to Enable Low-Cost Storage and Transport of Hydrogen Globally

24 September 2024

Ayrton simplifies two major industry pain points with a novel liquid organic hydrogen carrier (LOHC) system compatible with existing liquid fuel infrastructure

Calgary, CANADA (September 24, 2024) - Ayrton Energy, a developer of liquid organic hydrogen carrier (LOHC) technology, secured USD $6.8 million in seed financing to advance its low-cost, scalable approach to safe, efficient delivery of clean hydrogen. 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. Ayrton Energy will leverage the financing to scale its proprietary technology, double the size of its team, and expand operations into energy hubs in the U.S.

Clean hydrogen is expected to deliver up to 85 gigatons in cumulative CO2 emissions reductions by 2050, and the market is expected to grow to $1.4 trillion annually by 2050, according to an outlook report by Deloitte. Two major bottlenecks stunting the growth of the clean hydrogen sector are the high costs of transport and lack of dedicated storage infrastructure. Clean hydrogen use in hard-to-abate industries like aviation and shipping will require dedicated infrastructure to enable practical, widespread hydrogen distribution and utilization. While fossil-based fuels like gasoline and natural gas are transported and stored via pipelines, railroad tank cars, and tanker trucks, the transport and storage of hydrogen is comparatively difficult and expensive today, requiring cryogenic temperatures and high-pressure containers.

Founded by mechanical engineer Natasha Kostenuk and chemist Dr. Brandy Kinkead, Ayrton is developing the only low temperature and low pressure LOHC hydrogen storage system to enable clean hydrogen at lower cost and higher safety than any storage solution on the market today. Ayrton’s energy-efficient solution allows for stable, long-term storage and transportation of hydrogen at room temperature using existing liquid fuel infrastructure.

“The transportation and storage of clean hydrogen is a major barrier to expanding hydrogen adoption in critical sectors for decarbonization like mobility and energy,” said Daniel Goldman, Co-founder and Managing Partner at Clean Energy Ventures. “Ayrton’s solution demonstrates an innovative, scalable and cost-effective path for using hydrogen in geographies far beyond where hydrogen can be produced at very low cost. We’re eager to help this deeply technical and commercial leadership team scale their technology and enable broad expansion of the hydrogen market globally.”

"The hydrogen sector will play an increasingly important role in decarbonizing our economy," said Cheri Corbett, Partner and Team Lead at BDC Capital's Climate Tech Fund. "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.”

With a unique LOHC system, Ayrton’s non-toxic, oil-based carrier fluid is controlled similarly to liquid fuels enabling producers to store hydrogen to minimize losses without the need for new infrastructure. Ayrton’s system maintains hydrogen at high purity for compatibility even with fuel cells and creates a solution suitable for long-duration storage, overcoming 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 already deploying a pilot program in Alberta, Canada, with ATCO Gas. ATCO is the largest natural gas utility in the province and a leader in the hydrogen space in North America. The partnership will enhance Ayrton's ability to produce tens of tons of hydrogen annually and explore the potential for integration with technologies like fuel cells and other energy systems.  

“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,” said Natasha Kostenuk, Founder and CEO of Ayrton Energy. “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.”

About Ayrton Energy

Headquartered in Calgary, Canada, Ayrton Energy is the developer of a first-of-a-kind clean hydrogen storage system to enable stable, long-term storage and transportation at room temperature. Compatible with existing infrastructure, Ayrton's scalable solution supports the widespread deployment of clean hydrogen globally for an emissions-free future. Learn more at ayrtonenergy.com.

About Clean Energy Ventures

Clean Energy Ventures (CEV) advances global climate solutions by backing exceptional leadership teams and game-changing technologies as they transform into market leaders that can mitigate 2.5 gigatons of CO2e by 2050. The CEV team harnesses decades of energy and climate tech operational experience to actively accelerate our portfolio companies' commercialization. Founded in 2017, CEV manages over $415 million in assets and has funded 27 early-stage companies across North America, Europe, and Israel. For more information, visit cleanenergyventures.com.

About BDC Capital

BDC Capital is the investment arm of BDC, Canada’s bank for entrepreneurs. With over $6 million under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, as well as fund investments, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.

About Antares Ventures

Antares Ventures is a pioneering venture capital firm with a strategic focus on transformative deep-tech startups that tackle sustainability challenges in Asia growth markets, all within a global investment mandate. Our key investment areas include energy transition; sustainable food and agriculture; sustainable transport, cities, and infrastructure; and accessible healthcare. By leveraging our unique network of regional investors, corporate partners and C-suite advisors, we accelerate the Asia expansion of our companies. 

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