United States: HydrogenXT secures $900mn financing to launch ten hydrogen sites

HydrogenXT announces the signing of a $900mn (approximately €826mn) debt and equity financing agreement with Kell Kapital Partners Limited and its institutional partners. This amount will enable the launch of construction for the first ten units dedicated to the production and distribution of zero-carbon blue hydrogen in several US states, including California, Oregon, Washington, and North Dakota, along strategic transportation routes.

Large-scale deployment without federal subsidies

This financing is part of HydrogenXT’s strategy to commission 100 hydrogen plants and more than 200 distribution stations in North America, without resorting to public subsidies. In the longer term, the company plans to expand its network to more than 1,000 sites worldwide to supply zero-emission hydrogen fuel for heavy transport, industry, and digital infrastructure.

The operation’s structure combines senior debt and equity contribution. Investments will be dedicated to engineering, procurement, and construction of regional production sites equipped with Steam Methane Reforming (SMR) technology and full carbon capture, as well as integrated compression, storage, and dispensing (CSD) systems, which will also enable the production of decarbonised electricity for data centres, logistics platforms, or the power grid.

Technologies, pilot sites and market growth

The flagship site, located in Avenal, California, is ready for construction to begin in the coming months. Nine other locations have already been identified, including Blythe, Otay Mesa, El Centro, Victorville, West Sacramento, Yreka, Eugene (Oregon), Chehalis (Washington), and Bismark (North Dakota). The objective is to quickly deploy these infrastructures to meet the sector’s growing demand.

HydrogenXT’s technical platform combines local SMR technology with 100% carbon capture, zero-emission electricity generation from natural gas and renewable natural gas, as well as CSD modules designed for fast installation and scalable industrial and logistics needs. Fuel supply management and subscriptions are supported by the company’s proprietary digital tools.

Commercial agreements and industrial outlook

HydrogenXT has already secured several take-or-pay contracts worth several million dollars for hydrogen supply, and has a portfolio of potential agreements valued at several billion dollars. These commitments concern the freight, mass transit, aviation, and advanced energy applications sectors.

According to HydrogenXT’s management, the entry of Kell Kapital Partners Limited into the project is a major lever to accelerate large-scale hydrogen commercialisation and structure the industrial ecosystem around this energy vector. The company aims to make hydrogen economically competitive and meet the decarbonisation needs of major users.