Next Hydrogen Solutions (NXH.V) sends POC electrolyzer to Hyundai

Next Hydrogen Solutions (NXH.V), a Canadian company focused on the design and manufacture of electrolyzers that use water and electricity to generate clean hydrogen, announced today that it had shipped a proof-of-concept alkaline electrolyzer module incorporating Hyundai Motor cell components.

This milestone follows the July 2021, memorandum of understanding between Next Hydrogen and Hyundai and Kia to advance electrolyzer module-related technologies at the core of the alkaline water electrolysis system with the goal of reducing the cost of building/maintaining the system.

The pilot test showed the ability to operate at significantly higher current densities and temperature compared with traditional alkaline electrolyzers, providing a pathway to cost-effective green hydrogen production.

Raveel Afzaal, president and CEO of Next Hydrogen, commented, “We are extremely pleased with the successful outcome of this project with Hyundai Motor and Kia Corp. Combining Hyundai Motor and Kia’s state-of-the-art cell component technology with our innovative cell design architecture has demonstrated significant potential to improve the known performance of alkaline water electrolyzers and to produce green hydrogen economically. The team at Next Hydrogen is looking forward to next steps and potential commercial arrangements in the future.”

The global green hydrogen market size is estimated to be $4.7 billion USD in 2022 and is expected to grow to $60.56 billion by 2030 at a CAGR of 39.5%.

Tradition methods of extracting hydrogen from fossil fuels uses up 6% of global natural gas production and 2% of the world’s coal production each year, producing CO2 emissions of around 830 million tonnes of carbon dioxide annually. This is equivalent to the yearly CO2 emissions of the U.K. and Indonesia combined.

Next Hydrogen reported $30.32 million in cash and cash equivalents as of June 30, 2022, with revenues of $44,826 for the three months ended June 30, 2022, for a net and comprehensive loss of $3.41 million for the quarter.

Afzaal stated, “We are very proud of our team’s efforts to install the test infrastructure and commence system testing operations this quarter, despite some supply chain challenges. This essential capability will help accelerate the deployment of our innovative product lines in a cost-effective manner, de-risk our journey to large volume commercial sales, and establish a strong brand for Next Hydrogen.”

During the same quarter, the company completed the installation of multiple test platforms at its new 27,000 square foot facility in Mississauga, Ontario.

Next Hydrogen also signed a memorandum of understanding with Black & Veatch, a global engineering, procurement, consulting and construction company, to develop a complete, large-scale and integrated multi-megawatt green hydrogen solution.

Currently Next Hydrogen trades for $1.61 per share for a market cap of $36.82 million.