CALGARY, AB (October 21, 2025): NGIF Accelerator is proud to announce the successful demonstration of Hydrogen Optimized’s patented RuggedCell™ water electrolysis system, supported by a grant from the Industry Grants Program in 2021. The project validated the RuggedCell™ system’s performance with a variable supply of renewable electrical energy.
Ontario-based Hydrogen Optimized is focused on becoming a global leader in large-scale lower-emission hydrogen production systems. The company aims to enhance energy security while helping major industries significantly reduce their emissions.
The project put the RuggedCell™ system through extensive testing to validate its dynamic capabilities and reliability. Over the course of a year-long demonstration, the system was shown to accurately and effectively respond to fluctuations and intermittency in renewable energy feed. The RuggedCell™ system was directly connected to solar panels without the need for intermediate DC-AC conversion and rectifiers, thereby showcasing its adaptability to real-world variable energy inputs. Additionally, extended operating runs at the Hydrogen Optimized demonstration facility underscored the system’s durability and low degradation. These tests consistently delivered high-purity hydrogen, highlighting the technology’s readiness for seamless integration with renewable energy sources.
Demonstrations were conducted at Hydrogen Optimized’s megafactory in Ontario, with all project goals met or exceeded. The solar test cell operated continuously outdoors for over a year, while the demonstration cells ran for several days with minimal operator intervention.
Image: Hydrogen Optimized’s RuggedCell™ Electrolysis System
By connecting renewable hydrogen production to the natural gas value chain, the RuggedCell™ system supports renewable natural gas development, emissions reductions, and energy efficiency across the industrial, chemical, and transportation sectors. The technology offers a scalable and practical solution for integrating lower-emission hydrogen into Canada’s energy ecosystem.
Key project highlights:
- Continuous operation: the solar unit operated continuously for over a year outdoors, directly connected to a RuggedCell™ electrolyzer without intermediate DC-AC conversion and rectifiers; the at-scale demonstration ran for a week with minimal oversight.
- Proven high-quality output: the system consistently achieved consistent hydrogen quality during both at-scale and solar testing.
- Reliable under intermittent power: the demonstration validated the system’s accurate response, reliability, and ease of operation when coupled with renewable energy sources.
Looking ahead, Hydrogen Optimized is launching a flagship 50 MW foundational standard hydrogen plant to accelerate the global commercial deployment of the RuggedCell™. This milestone will showcase the company’s growing manufacturing capabilities at its megafactory and serve as a high-visibility reference site for future clients. It will also solidify Canada’s leadership in lower-emission technologies and the shift toward a more diversified energy future while paving the way for larger-scale projects exceeding 100 MW.
“Hydrogen production using the RuggedCell™ system demonstrates a practical pathway for the natural gas sector to lower emissions and integrate renewable energy into existing infrastructure. Projects like this help the industry advance environmental performance, create new market opportunities, and strengthen Canada’s energy resilience,” said John Adams, President and CEO of NGIF Accelerator. “Our Industry Grants program and its focus on de-risking lower-emission technologies through field trials and pilots are part of NGIF’s integrated model of industry validation, customer creation, and technology commercialization.”
“We are grateful to NGIF for their support in advancing our vision for a lower-emission energy future,” said Denis Krude, President and CEO of Hydrogen Optimized. “This grant has enabled us to demonstrate the unmatched reliability and scalability of our RuggedCell™ technology in real-world applications at scale. By showcasing how the RuggedCell™ performs seamlessly under dynamic renewable energy conditions, we are not only contributing to strengthening energy security but also reinforcing Canada’s leadership in lower-emission technology and the move toward a diversified energy future. This milestone positions us to accelerate the deployment of large-scale hydrogen not only here in Canada, but also worldwide. We look forward to collaborating with investors and customers eager to lead the shift to a secure energy future.”
“Canadians want and need the affordable, reliable energy service offering they have come to expect from the natural gas industry. When we created NGIF, it was our vision to bring the entire natural gas value chain together to support the development of the technologies that enhance environmental and economic performance for the sector. I am glad to see our vision in action as NGIF continues to support technologies like Hydrogen Optimized’s RuggedCell™,” said Timothy M. Egan, President and CEO, Canadian Gas Association, and Chair, NGIF Capital Corporation.
Industry Grants’ Participants and Project Partners
About Industry Grants program
The Industry Grants program is industry-led and offers non-dilutive grants to fund early-stage startups for technology development and field demonstration. The program specifically de-risks pre-commercial technology solutions that have the potential to increase the environmental performance of the natural gas sector. Each project in the program will accelerate technology readiness level progressions through controlled pilot testing and field trials to advance commercialization.
About NGIF Accelerator
NGIF Accelerator is the not-for-profit arm of NGIF Capital and operates all technology and innovation programs. The NGIF Accelerator mandate is to de-risk and accelerate technology development by supporting startups through their pilot projects, field trials, and industry validation. It will coordinate with federal and provincial governments to co-fund projects to advance market commercialization. NGIF Accelerator currently operates the Industry Grants program and administers the NGIF Emissions Testing Centre program.
About Hydrogen Optimized Inc.
Hydrogen Optimized is a private hydrogen technology company that manufactures and commercializes large-scale, lower-emission hydrogen production systems. It is part of Key DH Technologies Inc., a group of innovation-driven businesses in the deuterium and hydrogen industries. As a sustainable energy conversion company, Hydrogen Optimized enables the conversion of renewable electricity into lower-emission hydrogen and the transformation of heavy-emitting industries into sustainability leaders. We seek to be the first water electrolysis company to supply an aggregate of 10 GW of hydrogen production equipment. For more information on Hydrogen Optimized, please visit www.hydrogenoptimized.com
About Canadian Gas Association
The Canadian Gas Association (CGA) is the voice of Canada’s gas energy delivery industry, including natural gas, renewable natural gas (RNG), and hydrogen. Its members are distribution and transmission companies, equipment manufacturers and suppliers, and other service providers. Today, natural gas meets almost 40 percent of the country’s energy needs.
Fund Information:
John Adams
President and CEO, NGIF Accelerator
President and CEO, NGIF Capital Corporation
Media Information:
Dini Philip
Communications Coordinator,
