Calgary-based cleantech startup Ayrton Energy has closed $9.1 million CAD ($6.7 million USD) in seed financing to advance the US expansion of its hydrogen storage solution.
The all-equity, all-primary financing round was led by Boston-based Clean Energy Ventures and the Crown corporation Business Development Bank of Canada’s investment arm, BDC Capital. Other participants included Antares Ventures, EPS Ventures, SOSV, The51, and the University of Calgary’s UCeed Investment Funds.
“We believe our industry-agnostic solution will be a step in the right direction to democratize energy access globally.”
Ayrton is developing a hydrogen storage system that operates at low temperatures and low pressure. The system allows hydrogen to be stored in an organic liquid, which the startup says makes it more affordable and safer than current storage options since it can be handled no differently than gasoline.
According to a 2023 report by Deloitte, clean hydrogen is expected to deliver up to 85 gigatons in cumulative CO₂ emissions reductions by 2050.
Ayrton believes it can solve two major pain points in the clean hydrogen sector: the high costs of transport and the lack of dedicated storage infrastructure.
Unlike fossil fuels such as gasoline and natural gas, which are often transported and stored with pipelines, railcars, and tankers, hydrogen is more costly and complex to transport and store, according to Ayrton. This is because hydrogen requires high-pressure containers or extremely low temperatures to keep it stable.
“Enabling the widespread production of clean hydrogen will be the backbone of an emissions-free future, and we believe our industry-agnostic solution will be a step in the right direction to democratize energy access globally,” Natasha Kostenuk, founder and CEO of Ayrton Energy, said in a statement.
“We’re grateful to our amazing cohort of investors whose expertise in scaling technologies commercially will be integral as we continue to grow our customer base.”
Ayrton was founded in 2021 by Kostenuk, who studied mechanical engineering at the University of Calgary, and CTO Brandy Kinkead, who holds a PhD in chemistry from Simon Fraser University.
Ayrton Energy will use the financing to scale its technology, double the size of its team, and expand operations into energy hubs in the United States. The startup told BetaKit is looking to establish its US base in Houston, Texas, and has potential future projects in California, Texas, and states on the northeast US.
Hydrogen is playing an increasingly important role in the clean economy transition due to its potential as a versatile and sustainable energy carrier. This growth is particularly evident in Alberta, where the provincial government has set its sights on positioning Alberta as Canada’s capital for clean hydrogen production.
Earlier this year, Ayrton Energy received $1.7 million in funding from Alberta Innovates as part of a broader $57-million investment into 28 hydrogen power projects in the province. Hydrogen tech companies rooted in or operating within Alberta include Aurora Hydrogen, Proton Technologies, and Ekona Power.
“Ayrton’s technology will enable sizable greenhouse gas reduction and help Canada reach its 2030 and 2050 climate targets,” Cheri Corbett, partner and team lead at BDC Capital’s Climate Tech Fund, said in a statement.
Feature image courtesy TomFawls, CC BY-SA 3.0.