BioSolar Inc, a US developer of energy technologies, has said that it inked a security purchase agreement with an institutional investor for private placement offering which will warrant the purchase of common stock shares at US$ 0.06 per share. BioSolar expects proceeds from this private funding round of security will be around US$ 5 million. The agreement is expected to close by 27th January 2021.
The company plans to spend most of the funds on the development of its electrolyser technology. BioSolar is trying to reduce the cost of producing green hydrogen by replacing platinum and iridium with more affordable materials. It has recently changed its corporate name to NewHydrogen to reflect the company focus on the hydrogen industry.
Dr David Lee, CEO of BioSolar said: “NewHydrogen will focus on developing a breakthrough electrolyser technology to replace rare earth materials with inexpensive earth-abundant materials.”
BioSolar focuses on the proton exchange membrane (PEM) electrolyser and is replacing the iridium-based OER catalyst with an inexpensive earth-abundant material, which is claimed to be more efficient. The technology will also reduce the production costs of green hydrogen. The company sets itself a challenge to reduce green hydrogen prices to US$ 2/kg.
BioSolar is not the only company in the race of dragging the prices down. Last week, Norway’s Nel ASA announced that it is aiming to produce green hydrogen at US$ 1.5/kg by 2025 (assuming power costs at US$ 20/MWh). Nel further said that it is increasing electrolysis production and building a facility at Heroya, Norway.