The supply reservation agreement signed between the two companies includes commercial requirements for AES to order ten 100MW electrolyser plants, totalling 1GW. It also ensures AES can develop additional green hydrogen projects capitalising on EH2’s scale.

Set to be manufactured at its US gigafactory in Devens, Massachusetts, the agreement has reserved electrolyser production capacity for AES. The facility expected to produce up to 1.2GW of 100MW electrolysers per year once at giga-scale capacity.

Read more: Electric Hydrogen Co. to build 1.2GW electrolyser factory in Massachusetts

EH2’s 100MW electrolyser plants can follow variable renewable energy resources, allowing customers to “optimise energy use and maximise project returns,” according to the company.

Speaking on the agreement with AES Corporation, EH2 CEO Raffi Garabedian, commented, “AES’ expertise in power markets, project development and new technology integration are best-in-class.”

The company recently raised an additional $50m from Trinity Capital to advance the development of its gigafacotry, which is set to become operational this year.

Read more: EH2 raises an additional $50m in financing to support 1.2GW factory

Ashley Smith, Chief Innovation Officer at AES, added, “EH2’s innovative technology and large-scale product enables AES to offer cost effective decarbonisation solutions for our customers in the most difficult to decarbonise sectors.”

AES announced a deal with Air Products in 2022, to invest $4bn into building a large-scale hydrogen production facility in Texas, US. H2 View understands the facility will produce over 200 tonnes of green hydrogen per day with operations set to begin in 2027.

Read more: Air Products, AES announces $4bn hydrogen production plans for Texas, US