3M invests in green hydrogen firm EVOLOH to boost production

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3M invests in green hydrogen firm EVOLOH to boost production

ST PAUL, MN - 3M (NYSE: MMM ), a global science-based company, has recently made a strategic investment in EVOLOH, a cleantech company focused on scaling up the production of electrolyzers for green hydrogen.

This investment, as part of a $20 million Series A funding round, is aimed at making the production of green hydrogen more affordable and efficient, contributing to the advancement of the hydrogen economy and the global clean energy transition.

Electrolyzers are critical in the production of hydrogen, a clean fuel alternative, by using electricity to split water into hydrogen and oxygen. The hydrogen produced can serve as a sustainable fuel or chemical reactant in industries such as steel production and aviation, which are typically challenging to decarbonize.

EVOLOH's approach to electrolyzer manufacturing is innovative, utilizing components that do not require precious metals or rare earth materials, instead using readily available materials like steel, plastic, and aluminum. This design is expected to lower the costs of electrolyzer modules, as well as the expenses associated with installation and maintenance.

Mark Copman, senior vice president of 3M New Growth Ventures, expressed enthusiasm for the investment and the potential collaboration opportunities between 3M and EVOLOH. He highlighted 3M's expertise in high volume membrane electrode assembly and its alignment with EVOLOH's vision of providing clean and affordable hydrogen globally.

Dr. Jimmy Rojas, founder and CEO of EVOLOH, stated that the funding would position EVOLOH to lead the electrolyzer manufacturing market by transforming electrolyzer stacks into affordable, efficient hardware commodities, supported by 100% local supply chains.

The investment in EVOLOH is part of 3M's broader initiatives to enhance hydrogen technologies, including the development of high-performance catalyst technology for proton exchange membrane water electrolysis and a joint research project with HD Hyundai (OTC: HYMTF ) Korea Shipbuilding & Marine Engineering to develop large liquid hydrogen storage tanks using 3M glass bubbles.

This move by 3M reflects its ongoing commitment to materials science-based climate tech solutions and its efforts toward a sustainable future. The information for this article is based on a press release statement.

InvestingPro Insights

As 3M (NYSE:MMM) continues to expand its footprint in the green technology sector with strategic investments like EVOLOH, the company's financial health remains a critical aspect for investors to consider. According to real-time data from InvestingPro, 3M's market capitalization stands at a solid $51.52 billion, indicating a robust presence in the market despite recent challenges in revenue growth, which saw a decrease of -4.52% over the last twelve months as of Q4 2023.

Investors may find the adjusted P/E ratio of 10.14 more reflective of the company's earnings potential, compared to the unadjusted P/E ratio of -7.31. The PEG ratio, which measures the stock's value while factoring in expected earnings growth, is remarkably low at 0.03, suggesting that the stock could be undervalued based on its growth prospects. Additionally, the company's dividend yield of 6.57% as of the first quarter of 2024 may be appealing to income-focused investors, especially considering the dividend growth of 1.34% in the same period.

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