Green hydrogen hype has dried up. This US startup is pressing on.

Electric Hydrogen is relying on proving out its lower-cost claims to win advantage.

The company, which has raised over $600 million, has built a factory in Devens, Massachusetts, to make its electrolyzer stacks — the core parts of the proton exchange membrane (PEM) systems that use electricity to split water into hydrogen and oxygen. It has also partnered with other component manufacturers and engineering firms to streamline and standardize building the many other working parts of a green hydrogen plant — including power conversion, gas processing, water treatment, and thermal management — in a more modular way, Garabedian said.

Overall, Electric Hydrogen claims its total installed costs are less than half those of systems using electrolyzers from PEM competitors such as Germany’s Siemens Energy and Thyssenkrupp Nucera, as well as those of lower-cost alkaline electrolysis systems built by Chinese companies, which make up the majority of installed capacity today.

However, cost comparisons between different electrolyzer manufacturers and fully built green-hydrogen facilities are far from an exact science in this industry, said Pavel Molchanov, an energy analyst at Raymond James.

The world had approximately 2 gigawatts of hydrogen electrolyzers in operation at the end of 2024, according to the International Energy Agency’s ​“Global 2025 Hydrogen Review.” That amount, Molchanov said, is ​“a rounding error” compared with global fossil fuel–based hydrogen capacity.

Electrolyzer companies face a tough market, Molchanov added. The International Energy Agency reports that global electrolyzer manufacturing capacity expanded from just over 10 gigawatts in 2022 to more than 50 gigawatts in 2025. But in that time, forecasted demand for green hydrogen has plummeted, which leaves ​“far more manufacturing capacity available than what’s getting deployed,” Molchanov said. ​“That’s a lot of underutilized factories.”

The country’s cheap and abundant supply of fossil gas means that green hydrogen remains roughly three times more expensive than ​“gray hydrogen,” which is derived from fossil gas. This is true even for projects that secure the 45V hydrogen tax credits, which expire at the end of next year.

“No one in the U.S. is thinking about deep decarbonization these days,” Garabedian said. ​“And the price of natural gas is such in the U.S. that it’s hard to impossible for green hydrogen to compete head-to-head economically.”