Molly Yang, CEO and co-founder of Hgen, discusses her journey from Tesla to creating clean hydrogen solutions for heavy industry. She dives into the innovative alkaline electrolyzer technology that promises efficient, low-cost hydrogen production. Molly explores market strategies, the transition from gray to green hydrogen, and real-world applications in sectors like steel manufacturing. She also shares her insights for climate tech entrepreneurs, emphasizing the importance of understanding niche markets for successful startups.
Hgen is innovating clean hydrogen production by enhancing alkaline electrolyzer technology for higher efficiency and reduced costs in heavy industry.
The podcast highlights the contrasting views between generalist and climate investors regarding hydrogen's current market opportunities versus future applications.
Deep dives
Innovative Hydrogen Production Technology
HGen is focused on developing clean hydrogen production by refining alkaline electrolyzer technology, aiming for higher efficiency and power density. This innovation allows hydrogen generation in a smaller footprint and at a reduced cost, promoting modular and mass-manufacturable designs. HGen’s unique approach positions it to compete effectively against conventional hydrogen production methods which primarily rely on natural gas. By focusing on improving alkaline electrolyzers, HGen seeks to unlock the full potential of this lesser-studied technology within clean hydrogen applications.
The Origin and Experience of the Founders
Molly Yang, CEO and co-founder of HGen, brings a wealth of experience from her time at Tesla, leading efforts on energy products, and is complemented by co-founder Colin Ho’s expertise from SpaceX. Their shared background and deep trust, stemming from childhood friendships, have helped establish a strong foundation for HGen’s mission. Their mutual understanding and collaborative approach are critical in navigating the complex landscape of climate technology. Both founders are committed to leveraging their skills to address significant emissions in heavy industry through innovative solutions.
Targeted Market Approach for Hydrogen Solutions
HGen primarily targets existing industrial hydrogen users who face high costs due to transportation and logistics associated with conventional hydrogen supply chains. By deploying electrolyzers on-site, HGen allows these industries to produce hydrogen at a lower cost compared to purchasing liquefied or trucked hydrogen. This focused strategy provides immediate value to customers while establishing a scalable foundation for HGen's technology in industrial processes. Furthermore, this approach allows HGen to capitalize on existing hydrogen markets, paving the way to more extensive decarbonization efforts.
Navigating Climate Tech Investment Dynamics
The podcast discusses contrasting perspectives between generalist venture investors and more specialized climate investors regarding hydrogen's role in the energy transition. While generalist investors recognize hydrogen’s existing market and varied customer segments, climate investors express skepticism, primarily focusing on future applications rather than current market opportunities. This divergence highlights the need for climate startups to demonstrate product-market fit and deliver immediate value rather than solely relying on long-term promises. A clear emphasis is placed on understanding market dynamics and creating solutions that address pressing needs in the fight against climate change.
Molly Yang is CEO and co-founder of Hgen, a company that develops clean hydrogen to decarbonize heavy industry. Specifically, they are working on alkaline electrolyzer technology to make it have higher efficiency and higher power density, which they claim will allow them to produce hydrogen with a smaller footprint and lower cost, using a modular, mass-manufacturable design.
Based in Los Angeles, Hgen has raised capital from Founders Fund, Fontinalis Partners, and Seven Seven Six among others. Prior to starting Hgen, Molly was on the Product team at Tesla, where she led initiatives across Tesla's industrial and residential energy products. Her co-founder and childhood friend, Colin Ho led actuation & power system for Starship and propulsion components for Crew Dragon at SpaceX.
In this episode, Molly and Cody talk all about Hgen's origin story, technology and market. Toward the end of the conversation, she offers her thoughts to other climate tech startup founders and climate tech investors about how to approach a market.
In this episode, we cover:
[3:13] Molly’s background at Tesla and her motivation for starting Hgen
[6:09] Exploring different solutions for hard-to-abate sectors
[8:30] Hgen’s focus on distributed hydrogen production through alkaline electrolysis
[9:24] Comparing alkaline vs. PEM electrolyzers
[14:16] The challenges and advantages of alkaline electrolyzers
[16:10] Targeting markets that use hydrogen today and displacing gray hydrogen
[22:10] Various use cases for hydrogen
[25:06] Hgen’s progress and business model
[27:49] Hgen is hiring!
[28:08] How different investors view hydrogen
[34:25] Molly's advice for entrepreneurs
Episode recorded on July 11, 2024 (Published on Oct 10, 2024)
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