Hydrogen Optimized has been awarded an over $3.5-million repayable loan from the Government of Canada to automate and expand its RuggedCell™ water electrolyzer manufacturing capacity in Owen Sound, Canada. The funds will go toward an $11-million project that will increase RuggedCell™ production five-fold and create 50 high-quality full-time jobs.

Hydrogen Optimized Awarded $3.6-Million Government of Canada Loan to Automate and Expand RuggedCell™ Water Electrolyzer Manufacturing Capacity

FedDev Ontario funding will help company reach the scale required to become a global leader in the fast-growing clean hydrogen equipment market

OWEN SOUND, Ontario, Canada (Sept. 7, 2023) - Hydrogen Optimized Inc., a subsidiary of Key DH Technologies Inc. (KEY), has been awarded an over $3.5-million repayable contribution from the Government of Canada, through the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), to automate and expand its RuggedCell™ water electrolyzer manufacturing capacity in Owen Sound, Ontario.

The funds will go toward an $11-million project that will increase RuggedCell™ electrolyzer production at the company's Owen Sound manufacturing facility five-fold to 5,000 electrolyzer units per year of clean hydrogen production systems, and create 50 high-quality full-time jobs.

Hydrogen Optimized's patented RuggedCell™ water electrolyzers are the core components of the company's large-scale clean hydrogen production plants. With technology that is highly differentiated from other systems in the marketplace, the RuggedCell™ is uniquely capable of creating the world's largest water electrolysis modules for major industrial applications.

"With support from FedDev Ontario, our manufacturing scale-up will provide Hydrogen Optimized with the capability to supply RuggedCell™ systems to the world's largest clean hydrogen projects," said Andrew T.B. Stuart, President and CEO, Hydrogen Optimized. "We thank the Government of Canada for helping us to accelerate RuggedCell™ output and reduce manufacturing costs through cutting-edge automation."

The two-year project, which began in December 2022, will build on the company's existing capability to provide RuggedCell™ systems. In addition to the FedDev Ontario investment, the expansion is being funded with private investment along with financial support from the Government of Ontario.

"With this investment, Hydrogen Optimized and their dedicated workforce will continue to build on their potential and establish the company as a key manufacturer in the global energy market," said the Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario. "Our government is pleased to support the growth of clean energy and innovative technology so we can work together to create good jobs for rural communities and build a greener and more sustainable future for Canadians."

Hydrogen Optimized's strategic commercialization partner ABB provides robots for manufacturing automation, high-power rectifiers paired with RuggedCell™ electrolyzers, and other equipment required for large-scale clean hydrogen systems. The partnership includes a 2022 equity investment by ABB that has been instrumental in leveraging government support for product development and manufacturing.

"This manufacturing project is critical to advancing the commercialization of Hydrogen Optimized for success in world markets," said Michael Marti, Global Business Line Manager - Growth Industries, ABB. "In the year since our companies formed a strategic partnership, Hydrogen Optimized has made significant progress in its pursuit of the global clean hydrogen opportunity and continues to improve its position for success in the large-scale segment."

Scaling Up for a Rapidly Expanding Global Clean Hydrogen Market

The RuggedCell™ manufacturing scale-up will provide Hydrogen Optimized with the capacity to serve a rapidly expanding global clean hydrogen market, which is forecasted to reach US$1.4 trillion per year by 2050, according to a June 2023 Deloitte report, "Green hydrogen: Energizing the path to net zero." The report forecasts that most of the growth will be driven by green hydrogen production using water electrolysis. Meeting this demand will require significant investment in large-scale water electrolysis systems such as the RuggedCell™.

About Hydrogen Optimized
Hydrogen Optimized Inc., a subsidiary of Key DH Technologies Inc. (KEY), is a private hydrogen technology company that develops and commercializes large-scale green hydrogen production systems. The company's patented high-power RuggedCell™ water electrolysis system incorporates a design that enables green hydrogen plants up to gigawatt scale and low-cost mass manufacturing, and is free of iridium. Through a strategic relationship with global technology leader ABB, which holds a minority interest in KEY, Hydrogen Optimized accesses complementary ABB products and capabilities, including high-power rectifiers. This enables end-to-end integration of green hydrogen projects, from power source to end-use application, strengthening the customer value proposition for the world's largest green hydrogen projects. For more information on Hydrogen Optimized, please visit www.hydrogenoptimized.com.

About FedDev Ontario
For 14 years, the Government of Canada, through FedDev Ontario, has worked to advance and diversify the southern Ontario economy through funding opportunities and business services that support innovation, growth and job creation in Canada's most populous region. The Agency has delivered impressive results, which can be seen in southern Ontario businesses that are creating innovative technologies, improving productivity, growing revenues, creating jobs, and in the economic advancement of communities across the region. Learn more about the impacts the Agency is having in southern Ontario by exploring our pivotal projects, our Southern Ontario Spotlight, and FedDev Ontario's Twitter, Facebook, Instagram and LinkedIn.

For more information:
Don Hogarth
Hydrogen Optimized
Phone: 416-565-8920
Email: don.hogarth@hydrogenoptimized.com

Edward Hutchinson
Press Secretary
Office of the Minister Responsible for the Federal Economic Development Agency for Southern Ontario
edward.hutchinson@feddevontario.gc.ca