TDK Ventures invests in green hydrogen-electrolysis startup Verdagy
TDK Corporation announced that subsidiary TDK Ventures, Inc. has invested in green hydrogen company Verdagy to enhance the development and rapid commercialization of their scalable, low-cost approach to hydrogen electrolysis.
Having recently completed their spin-off from green chemical company Chemetry, Verdagy is focused on the large-scale production of green hydrogen required for deep-decarbonization of a wide range of industries. This investment marks a continued focus on clean and green technology by TDK Ventures. Along with financial backing, TDK Ventures is also excited to provide network and industry exposure, expertise in the energy sector, and rapid commercialization to expedite bringing Verdagy's technology to market.
More than 90% of hydrogen production is done using steam-methane reforming (SMR), which generates CO2 as a byproduct. Electrolysis is a game-changing technology, providing carbon-free pathways for energy production by generating high energy-content hydrogen gas through renewable energy such as solar, wind, hydroelectric and more.
Nicolas Sauvage, President, TDK Ventures: "We are proud to lead this round of financing in Verdagy, as we see this truly scaling with the ambition of TDK's vision into environmental transformation. We brought together a fantastic syndicate with each investor bringing value beyond the capital they invest in Verdagy, thereby amplifying our TDK Goodness. We are excited to get to partner with Verdagy and help bring our mutual vision of a more sustainable world to fruition."
Verdagy's novel approach to large-scale water electrolysis incorporates the advantages of alkaline electrolysis (AWE) and proton-exchange membrane (PEM) while designing out their inherent disadvantages. Verdagy created a new membrane-based approach to electrolysis, leveraging very large active area cells with the ability to operate at industry-leading high-current densities and wide dynamic operating ranges. This approach enables low capital and operating costs and is expected to meet or exceed the US Department of Energy's targets for water electrolysis.
Marty Neese, CEO, Verdagy: "It is very rewarding and encouraging to win the confidence of such a stellar group of thought-leading investors. It speaks volumes about the work done by the Verdagy team to demonstrate our low capex and low opex approach to green hydrogen electrolysis. We are looking forward to collaborating further with our investor partners on the journey to decarbonize various industrial sectors." Neese is a seasoned veteran in hydrogen and green sustainability initiatives. Prior to becoming CEO of Verdagy, he co-founded Nuvosil a solid-state silicon recycling company; is currently on the board of Ballard Power Systems -- an industry expert in PEM; and served as COO of SunPower and Flex.
Vinod Khosla, Founder, Khosla Ventures: "At Khosla Ventures, we invest in opportunities like Verdagy that are early, bold and impactful. Verdagy has made tremendous progress in its goals to deliver the lowest cost green hydrogen, since we first invested in their seed round a year ago. We are excited to continue on the journey with the company to accomplish its goal of decarbonizing industrial sectors across the globe."
Other investors in this oversubscribed round of financing include Khosla Ventures, Shell Ventures, Doral Energy Tech Ventures, Temasek, BHP Ventures, and Orbia Ventures - totaling $25 million. With this capital, Verdagy will rapidly scale to demonstrate their first commercial 10-cell stack at 2MW capacity and will target scaling to deliver their first 20MW "eDynamic™" electrolyzer in the near future. Industrial-scale plants utilizing multiple electrolyzers are also on Verdagy's product roadmap.
Roee Furman, Managing Director, Doral Energy-Tech Ventures: "Doral, as a global renewable energy developer, envisions a very near future in which we will not only produce electrons to the grid, but also produce molecules in the form of green hydrogen. Verdagy's novel electrolysis technology serves as a catalyst to the energy transition and to achieve net-zero - from decarbonizing various industries to long-duration seasonal storage. With strong leadership, remarkable technological breakthroughs and a stellar team of investors across industries and across continents - Verdagy is in the right position to introduce to the market an Electrolyzer with high-current densities and unbeatable CAPEX and OPEX."
Sameer Bharadwaj, CEO, Orbia: "We believe that green hydrogen, at the right scale and cost, is key to decarbonizing the industrial processing of steel, aluminum, cement and chemicals. Additionally, when used in combination with captured CO2, green hydrogen enables the production of other chemical feedstocks and liquid fuels for marine and aviation applications. Orbia hopes to contribute to Verdagy's success with its expertise in basic and advanced materials, large-scale chemical processes, and a focus on decarbonization technologies."