ArcelorMittal invests $5M in Israeli startup developing hydrogen-from-water tech

ArcelorMittal said Jan. 25 that it invested $5 million in Israeli company H2Pro Ltd. through its XCarb innovation fund.

The Luxembourg-based steelmaker's $5 million investment forms part of H2Pro's series B fundraising effort totaling $75 million. Other investors include Temasek, Horizons Ventures, Breakthrough Energy Ventures and Yara.

H2Pro is developing technology aiming to split water into hydrogen and oxygen, known as Electrochemical – Thermally Activated Chemical technology. The new technology aims to produce hydrogen with energy efficiency exceeding 95%, compared to traditional water electrolysis technologies that have energy efficiency averaging 70%.

H2Pro is expected to start producing hydrogen by 2023 at a cost of $2 per kilogram, when its first commercial, megawatt-scale project is scheduled to begin production. The cost is expected to decrease to below $1 per kilogram by 2030.

ArcelorMittal launched the XCarb fund in March 2021, and the H2Pro investment brings its total commitments to $180 million.