SoHHytech
Investment Thesis & Opportunity
SoHHytec centers on disrupting the massive global hydrogen market, of which 96% is currently produced from polluting fossil fuels11. Their solution, the patented 'Arb' (Artificial Tree), provides a breakthrough technology that achieves a World Record in solar-hydrogen production. The company is uniquely positioned as the world's best green hydrogen producer, with their technology being 2 times more efficient and 2 times cheaper (30–60% cheaper) than any competing conventional solution, resulting in a low Levelized Cost of Hydrogen (LCOH) that is forecast to drop below $2/kg. This high performance and cost-effectiveness are crucial for accelerating the transition to a sustainable, decentralized energy system.
Business Model, Market Opportunity, & Strategy
The company is targeting the massive Green Hydrogen Market, which is projected to grow to $1.40 trillion by 2050. SoHHytec is solving a major industry problem by enabling industrial customers to reduce their dependency on polluting, centralized fossil fuels. They have demonstrated strong market traction with a Big and Solid Project Pipeline cumulatively worth over $1.5 Billion in revenue potential over the next four years, having secured interest from leading corporate customers around the world from the EU, USA, and India. Furthermore, the environmental impact alone is immense, with the potential to save up to 10 Billion Tons of CO2/Year and specifically providing a saving potential of 100 million tons CO2/year. The high financial returns are validated by a projected IRR of 25% and an NPV of $103 million for example projects.
Financial Performance, Terms, & Target Returns
SoHHytec's financial projections are built on achieving superior efficiency and cost-effectiveness compared to the competition. The company's core technology, the 'Arb,' is projected to be 2x more cost-effective and can achieve a Levelized Cost of Hydrogen (LCOH) of $2.5/kg initially, with plans to drop this below $2/kg by 2026. They have a Big and Solid Project Pipeline cumulatively worth over $1.5 Billion in revenue potential over the next 4 years. The financial modeling for a single project implementation projects High Monetary Returns with an NPV of $103 million, an IRR of25%, and a Payback Period of 4 years.
Impact Measurement, Management, & SDG Alignment
Management Team & Corporate Governance
The company is a Switzerland-based developer led by Dr. Saurabh Tembhurne (CEO and Founder) and operates with a world-renowned team boasting over 150 years of combined experience. SoHHytec has strong academic and institutional validation, starting from 10+ years of R&D and being a spin-off from EPFL. The founder has been actively engaged at a high level with numerous governments, including the Presidents of Switzerland and Chile and ministers from India and Brazil, demonstrating strong diplomatic and commercial traction.
Risk Factors & Exit Strategy
No formal Exit Strategy is provided.
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