How a US electrolyzer redefines hydrogen efficiency

Verdagy Hydrogen, a California-based company, has developed a reengineered alkaline water electrolyzer platform called “Dynamic AWE” that significantly improves hydrogen production efficiency beyond conventional systems. By adapting chlor-alkali chemistry and employing a unique single-cell architecture that virtually eliminates shunt currents—electrical losses common in traditional alkaline stacks—Verdagy claims to have surpassed US Department of Energy (DOE) efficiency targets years ahead of schedule. The company validated its efficiency gains through rigorous benchmarking, normalizing performance data to atmospheric pressure and accounting for compression power, enabling fair comparisons across different electrolyzer designs. The efficiency improvements translate directly into substantial economic benefits. For example, a 1 kWh/kg efficiency gain at an electricity price of $50/MWh results in savings of $0.50 per kilogram of hydrogen produced. At scale, such as a 100-megawatt plant, this could amount to $3.65 million in annual savings. While this alone may not fully close the cost gap with