In the United States (US), investment firm Fortistar LLC has announced that it has joined an equity investment of up to US$157 million in BayoTech, Inc., a developer and producer of on-site hydrogen production technology solutions. Led by Newlight Partners LP, the financing round includes existing investors Cottonwood Technology Funds and the New Mexico State Investment Council under a fund managed by Sun Mountain Capital.
BayoTech is an energy solutions company committed to addressing the global need for a consistent, cost-effective, low carbon supply of hydrogen. Hydrogen possesses many attributes that will drive long‐term demand as a fuel source, including its role in global decarbonization efforts. Today, most hydrogen is produced at large, centralized facilities before being delivered to end-users.
For 2021 and beyond, we’re looking to support emerging, proven solutions that help accelerate our country’s transition to lower carbon and a more sustainable future. We’re excited about our investment in BayoTech, which is already providing innovative ways to incorporate hydrogen into our economy today. With our help and BayoTech’s innovations, America just got one step closer to a net zero-carbon economy, said Mark Comora, President of Fortistar.
Gas-as-a-service
Through its on-site hydrogen generators and “gas-as-a-service” offering, BayoTech reduces or eliminates transportation and storage costs, resulting in less energy wasted and a lower carbon footprint than traditional hydrogen production technology and electrolyzer-based systems.
The company’s modular, scalable, and rapidly deployable hydrogen production systems require lower upfront capital commitments, streamlined siting, and installation, and, when paired with renewable natural gas (RNG), offer the most cost-effective green hydrogen available today.
BayoTech’s hydrogen generation systems produce local hydrogen close to the application, serving a diverse set of end-users, including traditional consumers in the industrial gas and chemicals industries, as well as those using hydrogen to power the fast-growing fuel cell segment.
This is a momentous day in our company’s evolution. This investment will enable BayoTech to drive commercial growth aggressively so that consumers around the world can have access to low-cost and low- to zero-carbon hydrogen today, said Mo Vargas, President, and CEO of BayoTech.
The funds will be used to accelerate BayoTech’s strategic growth through product development, project development, and infrastructure expansion.
We are excited to welcome Fortistar, a leading investor in sustainability, who have developed almost 400 fueling stations and a US$500 million capital investment program to produce over 100 million gas gallon equivalents of RNG. The transportation sector will play a critical role in accelerating the hydrogen economy and BayoTech and Fortistar have an amazing opportunity to build together and produce low-cost, green hydrogen using RNG with BayoTech’s generators to support this growth. The Fortistar team continues to show a great commitment to supporting emerging technologies in the clean energy space and we are honored to work with them to help transition the transportation sector to a more sustainable system, said Mo Vargas.
