Infinity Fuel Cell and Hydrogen

Infinity Fuel Cell and Hydrogen

Growth Stage

Power at any Altitude

Power at any Altitude

Overview

Raised this Round: Raised: $1,217,610

Total Commitments ($USD)

Platform

Dealmaker Securities

Start Date

10/11/2023

Close Date

09/01/2024

Min. Goal
$10,634
Max. Goal
$4,999,996
Min. Investment

$818

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$8.00

Pre-Money Valuation

$54,320,000

Year Founded

2005

Industry

Energy, Power, & Natural Resources

Tech Sector

Cleantech

Distribution Model

B2B

Margin

Low

Capital Intensity

High

Location

Windsor, Connecticut

Business Type

Growth

Infinity Fuel Cell and Hydrogen, with a valuation of $54.32 million, is raising funds on Dealmaker Securities. The company has its patented fuel cells and electrolysis hydrogen-generating technology that provides energy for extreme operating environments. Infinity Fuel Cell and Hydrogen’s technology is used in space and underwater systems, leading to the company’s partnerships with NASA and the US Navy. The Advanced Product Water Removal (APWR) technology is AS9100 certified and generates cost-effective and long-lasting renewable power. William Smith founded Infinity Fuel Cell and Hydrogen in February 2005. The current crowdfunding campaign has a minimum target of $10,634 and a maximum target of $5 million. The campaign proceeds will be used for product development, testing, productionization, sales, marketing, business development, and working capital.

Summary Profit and Loss Statement

FY 2023 FY 2022

Revenue

$8,956,131

$6,366,834

COGS

$6,043,244

$5,021,647

Tax

$123,269

$20,039

 

 

Net Income

$604,181

$448,992

Summary Balance Sheet

FY 2023 FY 2022

Cash

$4,464,049

$207,498

Accounts Receivable

$2,136

$26,412

Total Assets

$9,898,539

$1,003,957

Short-Term Debt

$0

$96,040

Long-Term Debt

$0

$0

Total Liabilities

$0

$96,040

Financials as of: 10/11/2023
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Synopsis

The world transition to green energy is running at full speed: in 2023, the renewable energy capacity added to energy systems around the world grew by 50%. Green energy technologies, despite still being improved, are good enough to produce reliable energy worldwide. But one blind spot still exists in the transition. The decarbonization of heavy transports, such as trucks, planes, and boats, is barely starting, and technologies are still five years ahead of commercialization for optimists, more for pessimists.

Heavy transport typically uses a dense energy source, such as diesel or kerosene. However, electric batteries’ lower energy density makes it challenging to have efficient electric trucks, boats, and planes. That’s why the energy industry is looking at another source to power them: hydrogen.

Hydrogen is widely used worldwide for industrial applications today, but at least 96% of it is produced using fossil fuels. However, when hydrogen is produced using electrolysis powered by renewables, it offers an efficient, carbon-free energy source. Green energy also has the potential to decarbonize heavy transportation.

So why does the transition seem slow?

Like everything else, it’s about money. Hydrogen is simply too expensive to be cost-competitive with fossil fuels. However, one company can help decrease the cost of hydrogen: Infinity Fuel Cell and Hydrogen, Inc.

Infinity is an exciting investment opportunity for investors because it offers two products.

First, the company is commercializing a patented advanced zero-gravity membrane-based fuel cell used in space and underwater systems, leading to partnerships with NASA and the US Navy. Infinity is  AS9100 registered and cyber security certified to NIST 800-171, a quality management system standard for the aviation, space, and defense industries. This product will generate millions in revenue in the next couple of years. 

Second, Infinity is developing an electrolyzer capable of producing hydrogen at high pressure, saving hydrogen and ammonia manufacturers’ costs, time, and energy. The company could help its clients save up to 20-30% and reduce the cost of hydrogen and ammonia for energy and agricultural usage. 

Infinity is a revenue-generating company with a product that is meeting market demand—its fuel cell—and is poised to grow with the transition to renewable energy, one of the biggest business opportunities of our century. Led by William Smith, an experienced entrepreneur in the hydrogen industry who took the company he co-founded, Proton Energy System, public, Infinity is an exciting investment for KinsgCrowd Capital.

Next Section: Price

Price

Infinity Fuel Cell and Hydrogen, Inc. is offering equity at a valuation of $54.32 million. The company has achieved profitability and is transitioning from research and development to production with commercial contracts. With a revenue multiple of 6.07x, Infinity and Hydrogen’s valuation seems reasonable, given its growth potential and partnerships with NASA and the US Navy.

Next Section: Market

Market

Infinity Fuel Cell and Hydrogen, Inc. operates in two markets. Its first product operates in the Fuel Cell market, which is witnessing increasing demand due to the growing need for unconventional energy sources. The US fuel cell market is estimated at $3 billion, with a growth rate of 21.7%. The demand for hydrogen power plants is expected to increase across the forecast period due to increasing regulations in developed economies to reduce greenhouse gas emission rates. The growth of this market is also bolstered by the rising emphasis of governments in mature economies such as the US and Europe on technological advancements to replace electric grids.

Government support, mainly through funding Research & Development (R&D) activities and suitable financing programs, is a key factor driving this market. Building a robust regulatory framework is crucial as government enterprises must create an environment favorable for investment. This is particularly important in this space as there is a high market approval or license regulation.

Infinity also operates in the Global Green Hydrogen market, worth $6.2 billion and set to grow at a high rate of 39.5% annually. The company’s electrolyzer has great potential in this market thanks to its ability to reduce pressured hydrogen production costs. 

High-pressure electrolyzers hold immense potential in the green hydrogen market, particularly in regions like the U.S. and Germany, with a strong push toward clean energy solutions. With favorable government policies promoting the hydrogen economy and concerns over carbon emissions driving demand, high-pressure electrolyzers offer a promising pathway for green hydrogen production. The U.S., with its ambitious Energy Act and early adoption of clean energy solutions, aims to have hydrogen from low-carbon sources fulfilling a significant portion of its energy needs by 2050, including sectors traditionally reliant on natural gas. Additionally, Germany’s supportive policies and substantial investments in green hydrogen projects position it as a leader in the market, further emphasizing the potential for high-pressure electrolyzers to thrive in such environments.

Innovations in high-pressure electrolyzer technology, particularly in proton exchange membrane (PEM) electrolyzers, are expected to drive significant growth in the green hydrogen market. PEM electrolyzers offer higher power efficiency and functional flexibility, making them increasingly attractive for commercial-scale deployment. Industry players like ITM Power and ITM Linde Electrolysis GmbH are already investing in PEM electrolyzer technology at an industrial scale, further highlighting its potential. Moreover, as the transportation sector emerges as a major consumer of green hydrogen, with applications ranging from fuel cells in vehicles to powering aircraft, the demand for efficient and scalable electrolysis methods like high-pressure electrolyzers is set to soar. This trend, coupled with advancements in distribution channels such as pipeline transportation, underscores the pivotal role high-pressure electrolyzers can play in shaping the future of the green hydrogen market.

Next Section: Performance

Performance

Infinity Fuel Cell and Hydrogen, Inc. developed its patented zero-gravity fuel cell product thanks to the support of NASA and the US Navy. This allowed the company to be profitable for the last few years while focusing on research and development. 

These grants allow Infinity to focus on commercialization and production, securing commercial contracts for its patented fuel cells and electrolysis hydrogen-generating technology. Infinity partnered with Blue Origin, Axiom Space, and Boeing. The company has signed several million dollars worth of contracts for at least 12 months.

The US Navy also funded the development of Infinity’s patented electrolyzer, which is still under development and should be commercialized in 24-36 months. Infinity’s electrolyzers have the ability to directly generate high-pressure hydrogen ( 150 BAR and above) from low-pressure input water without mechanical compression. The company rents its manufacturing facility to produce its patented fuel cell and will manufacture its electrolyzers when ready for commercialization. Overall, the company has 7 US patents and two European patents, demonstrating the defensibility of its product.

Next Section: Differentiators

Differentiators

Infinity Fuel Cell and Hydrogen, Inc.’s defensibility comes from its ability to develop technologies that other companies lack.

One of Infinity’s key offerings, currently commercialized, is its patented Advanced Product Water Removal (APWR) technology. This technology generates cost-effective and long-lasting renewable power, making it an attractive solution for businesses seeking sustainable energy solutions. The company’s success in achieving profitability and transitioning from R&D to production with commercial contracts demonstrates its differentiation and market traction. In the Fuel Cell market, very few competitors, like Teledyne, can produce zero-gravity fuel cells, giving Infinity a certain advantage.

Infinity is developing a product capable of producing hydrogen at high pressure on the electrolyzer market. The company is innovating and could eventually lower hydrogen prices.

Most of its competitors need to build high-pressure electrolyzers, which can help Infinity’s clients save 20-30% on final hydrogen production costs. The company’s technology could position it as a winner in the market and make it an attractive target for acquisition.

Overall, while the company operates in a moderately competitive landscape with established competitors such as Bloom Energy, Toshiba, and Hyundai, Infinity’s focus on extreme operating environments and its partnerships with prestigious organizations like NASA and the US Navy give it a unique position in the market. The company’s high barriers to entry, including its patented technology and partnerships, provide a level of protection against potential competitors.

Next Section: Team

Team

CEO William Smith founded Infinity Fuel Cell and Hydrogen, Inc. Smith brings extensive experience to the company, with 27 years of hydrogen industry experience. He has a strong background in fuel cell technology, particularly in air-independent and regenerative fuel cells. Smith previously co-founded the hydrogen company Proton Energy System. He grew the company from a 5-employees team to an IPO on the NASDAQ in 2000. In the meantime, he raised $200 million for the company.

Smith’s background is an asset to the company. He has a very strong and recent understanding of the hydrogen market and has demonstrated his ability to successfully grow and exit a startup.

Next Section: Risks

Risks

While Infinity Fuel Cell and Hydrogen, Inc. has made significant strides in fuel cell technology and established partnerships with prestigious organizations like NASA and the US Navy, several risks must be considered when evaluating this investment opportunity.

One key risk is the industry’s highly competitive nature, with direct competitors such as Bloom Energy, Toshiba, and Hyundai. This competitive landscape could challenge Infinity regarding market share and pricing power.

Another risk factor is the energy industry’s high market approval and license regulations. Compliance with these regulations may result in increased costs, delays in product development, or the need for additional licenses and certifications.

Furthermore, the long sales cycle and the need for extensive production and quality control processes for hardware pose potential risks. Ensuring consistent quality and meeting customer expectations can take time and effort, leading to delays, increased costs, or customer dissatisfaction.

Lastly, the company will depend on developing green hydrogen to capture new market shares. This development will depend on various factors, including government incentives and regulations. The green hydrogen market will take years to grow and require long-term investments.

Next Section: Bullish Outlook

Bullish Outlook

Infinity Fuel Cell and Hydrogen, Inc. has developed groundbreaking products and received support from high-end partners, thus having a bright future ahead in the fast-growing fuel cell and green hydrogen markets. 

The company’s patented fuel cells and electrolysis hydrogen-generating technology have proven effective in extreme operating environments, leading to valuable partnerships with NASA and the US Navy. These partnerships provide credibility and open doors for future contracts and collaborations.

Infinity’s patented Advanced Product Water Removal (APWR) technology, which is AS9100 registered and cyber security certified to NIST 800-171, offers a cost-effective and long-lasting renewable power solution. The company’s focus on air-independent fuel cells and regenerative fuel cells has resulted in breakthroughs that have improved performance and reliability while simplifying the complexity of these systems.

Additionally, Infinity’s electrolyzer has the unique advantage of producing hydrogen at pressure, which could reduce the capital and operating costs of producing green hydrogen and ammonia by 20-30%. By finally bringing the cost of green hydrogen down, the company’s electrolyzer could become a key element in the decarbonization of heavy transportation and green energy storage.

The company’s financials are promising, with solid grant revenues of $8.9 million in 2022 and only slightly less in 2023. Infinity already has contracts for its fuel cell which assures a revenue generation for the next 12 months at minima. With its high market potential, the company is well-positioned to capitalize on the increasing demand for clean and sustainable energy solutions.

Next Section: Bearish Outlook

Bearish Outlook

Infinity Fuel Cell and Hydrogen, Inc., operates in a highly competitive industry with direct competitors such as Bloom Energy, Toshiba, and Hyundai. While its focus on zero-gravity fuel cells and high-pressure electrolyzers sets it apart from its competitors, it positions it in a market niche where demand may be volatile.

The development of green hydrogen in more areas of society, such as heavy transportation and energy storage, will depend on the development of green hydrogen. New green hydrogen plants will take years to develop, and the rise in materials costs could slow down current projects. Therefore, while the company is operating in a fast-growing market, the actual potential of the market will depend on political decisions and technological innovations. The market uncertainty and volatility make Infinity a risky investment opportunity.

Next Section: Executive Summary

Executive Summary

Infinity Fuel Cell and Hydrogen, Inc. is a company that specializes in highly differentiated next-generation air-independent fuel cells. The company’s patented technology is used in extreme operating environments like space and underwater systems. It has partnerships with NASA and the US Navy. It provides cost-effective and long-lasting renewable power. Infinity is also designing a promising high-pressure electrolyzer that cuts a step – and 20-30% cost in the transportation of hydrogen and its transformation into ammonia.

Thanks to the global push towards reduced environmental impact, Infinity has strong market potential. The US fuel cell market is estimated at $3 billion, with a growth rate of 21.7%, while the Global Green Hydrogen market is worth $6.2 billion and set to grow at a high rate of 39.5% annually. In such fast-growing markets, and with products offering new capabilities, Infinity has the potential to take advantage of the market growth.

The company has already demonstrated profitability and is now transitioning from research and development to production with commercial contracts. Thanks to contracts worth millions of dollars, Infinity should maintain high revenue levels for the next 12 months at a minimum. With a 2021 annual revenue of $8,956,13, Infinity is fairly valued at a pre-money valuation of $54,320,000.

Lastly, the company’s leadership team is highly experienced in the industry. The founder and CEO, William Smith, previously exited a hydrogen company through an Initial Public Offering (IPO) in 2000. Infinity is set to be a key player in the green hydrogen space.

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Infinity Fuel Cell and Hydrogen on Dealmaker Securities 2023
Platform: Dealmaker Securities
Security Type: Equity - Common
Valuation: $54,320,000
Price per Share: $8.00

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