Controlled Liquid Hydrogen Storage: The backbone of decentralized energy

Southwest Research Institute (SwRI) and SMU are developing an AI-driven controller for hybrid microgrid systems that integrate multiple energy sources and storage systems to function. The project is funded by a $129,842 grant from the Seed Projects Aligning Research, Knowledge and Skills (SPARKS) joint program, which aims to strengthen and cultivate long-term research between SwRI and the Lyle School of Engineering at SMU.

Battery systems are effective for short-term energy storage. Hydrogen storage systems, on the other hand, offer the potential to extend energy storage duration from hours to days. This can potentially enable greater system resilience and efficiency during periods of prolonged outages or renewable energy shortfalls, as energy demands rise due to the proliferation of AI computing and data centers.

The SwRI and SMU project will develop an AI controller for a microgrid configuration that integrates a battery energy storage system (BESS) with a long-duration hydrogen energy storage system (HESS). The application will integrate fuel cells, advanced solid-state storage technologies, renewable energy generation and the local energy grid for power. The grid will use electrolyzer devices to split water into hydrogen and oxygen through electrolysis for storage.

The controller will be designed to manage and coordinate the available grid’s energy sources in real time to ensure optimal reliability, reduce operational costs, improve renewable energy utilization, and enhance system sustainability for critical systems, such as data centers, and other facilities that require continuous power and low-carbon backup sources. 

“The rapid expansion of AI computing is creating unprecedented electricity demand, challenging both utilities and data center operators to find reliable and scalable power solutions,” said Dr. Richard Fu, a research engineer in SwRI’s Powertrain Engineering Division and one of the project’s principal investigators. “Hybrid microgrids are one way that industry could tackle this energy challenge. We are working to create a control system that helps them integrate long-duration energy storage and renewable power resources without sacrificing reliability.” 

Dr. Jianhui Wang, Mary and Richard Templeton Centennial Chair of Electrical Engineering and a professor in SMU’s Department of Electrical and Computer Engineering, will develop the AI controller. It will be designed to regulate the microgrid’s performance efficiently. The system will use a digital twin, a virtual replica of the system continuously updated with data from its physical counterpart, to emulate realistic operational conditions and workloads, such as those needed to run data centers, and provide algorithms, modeling and data to help the AI controller effectively manage energy allocation. 

“By leveraging a digital twin, our AI controller can learn optimal energy dispatch strategies under realistic data center workloads,” said Wang. “This physics-informed AI approach enables intelligent coordination between short- and long-duration storage while respecting equipment constraints. Ultimately, we aim to deliver more resilient and sustainable microgrid operations.”

SwRI’s on-campus infrastructure, including its 250-kilowatt to 500-kilowatt-hour grid-connected BESS and local grid, will provide the AI controller with a safe platform to rigorously test the technology using real hardware.

“SwRI has extensive experience with hardware-in-the-loop (HIL) testing using a real controller in an emulated environment to validate effectiveness,” said Stas Gankov, manager of SwRI’s Advanced Algorithms Section and a member of the project’s development team. “Our HIL platform lets us push the AI controller to its limits. We can emulate fast changes in load, renewable volatility and grid events, all without risking customers or the grid. We have spent years building real-time control and HIL expertise. Plugging this controller into that framework is a powerful way to mitigate risks of technology innovation while still accelerating deployment.”

The controller will employ a physics-informed artificial intelligence to coordinate battery and hydrogen storage resources in real time while respecting operational constraints that affect equipment performance and lifetime. The project is part of a broader effort to show how SwRI can deliver solutions – such as advanced algorithms, advanced technology and performance validation – for next-generation, energy-intensive facilities. 

“This work demonstrates how SwRI can contribute to the effective development of next generation data centers or other critical facilities by designing, controlling, and validating resilient, low-carbon power systems from concept through deployment,” Fu said. 

This project was funded (fully or in part) by SMU Lyle School of Engineering and Southwest Research Institute. 

SRI | https://www.swri.org/

First Hydrogen Corp. (TSXV: FHYD) (OTC Pink: FHYDF) (FSE: FIT) ("FIRST HYDROGEN" or the "Company") is pleased to announce that it is advancing the development of artificial intelligence capabilities for its unmanned ground vehicle ("UGV") platform, with a focus on defence, security, counter-drone support, autonomous navigation and mission-adaptive field operations. The UGV program represents a strategic expansion of First Hydrogen's existing hydrogen mobility activities into advanced robotics, autonomous systems, defence and security applications.

As drone threats continue to evolve from individual first-person-view ("FPV") attacks to coordinated and increasingly complex multi-drone operations, defence and security organizations are evaluating new layers of protection that extend beyond traditional aerial systems. First Hydrogen believes intelligent autonomous ground platforms can play an important role in this emerging environment by supporting force protection, reconnaissance, logistics, sensor deployment and counter-unmanned aerial systems ("counter-UAS") applications. The platform is intended to extend operational coverage, support wider security perimeters and allow personnel to supervise multiple automated systems while reducing their direct exposure to hazardous environments.

To support development of the platform, First Hydrogen is in discussions with a highly experienced artificial intelligence specialist with experience in autonomous systems, advanced computing and defence-related technology programs. This expertise is expected to support the Company's AI development roadmap and may enhance autonomous decision-making, situational awareness, sensor fusion, threat detection and mission effectiveness.

The proposed AI development work is expected to focus on several key areas, including autonomous navigation, object recognition, sensor integration, mission planning, operator-assist tools and support for future counter-UAS applications. These capabilities are intended to enhance the platform's ability to operate in complex environments, support real-time decision-making and provide defence, security, industrial and infrastructure customers with adaptable robotic solutions for emerging threats.

Advances in artificial intelligence, autonomous navigation, sensor integration and edge computing are enabling a new generation of UGVs designed to operate in dynamic and challenging environments. Mobile autonomous platforms could be configured to carry sensors, communications systems, surveillance equipment and counter-UAS payloads directly to areas where threats emerge, providing a flexible and responsive layer of defence support.

First Hydrogen's UGV platform is being designed as a rugged, modular and mission-adaptable autonomous ground system. The Company's previously announced platform includes a patented and patent pending folding chassis architecture, articulated leg-wheel assemblies, hot-swappable mission modules and amphibious capabilities. These features are intended to support operations across difficult terrain, coastal environments, ports, inland waterways, industrial sites, remote infrastructure, defence facilities and other environments where conventional vehicles may face mobility or deployment limitations.

Balraj Mann, Chairman and Chief Executive Officer of First Hydrogen, commented: "The battlefield and security environment is changing rapidly, and autonomous systems are becoming increasingly important across defence, infrastructure protection and emergency response. By pursuing specialized artificial intelligence expertise for our UGV program, we are strengthening the platform's potential to support next-generation defence and security applications, including autonomous navigation, situational awareness and counter-drone support. We believe this represents a natural extension of First Hydrogen's strategy at the intersection of clean energy, autonomous systems, mobility and advanced robotics."

Fortune Business Insights reports the drone market size is projected to reach US$210.3 billion by 2034 from US$91.9 billion in 2025 at a compound annual growth rate (CAGR) of 9.63% during the forecast period. (https://www.fortunebusinessinsights.com/drone-market-116193).

First Hydrogen | https://firsthydrogen.com/

Fronius and Renon are pleased to announce that Fronius GEN24 Plus solar inverters (3.8-10.0 kW) and the Renon Xtreme HV 1.0 battery energy systems (9.6, 14.4, and 19.2 kWh) have been listed by the California Energy Commission as a paired residential storage solution. The listing supports California installers working to reduce friction in project permitting and interconnection, while also reinforcing that the system meets the state’s efficiency and performance expectations. 

For homeowners and installers, the result is a more confident path to specifying a high-voltage solar + storage system built for residential use and designed to integrate cleanly into modern PV applications. The pairing gives solar professionals another option when they need a vetted storage configuration that can broaden system design choices without sacrificing reliability. 

The Renon Xtreme HV 1.0 was developed to deliver high-voltage residential storage in a compact, modular format. Its operating range of 192–384 V helps reduce transmission losses, while its stackable architecture supports two to four battery modules and is designed to improve system flexibility through dynamic current equalization. Built-in smart management, Wi-Fi connectivity, an EMS, and a battery optimizer rated for up to 8,000 cycles makes it a strong fit for homeowners seeking long-term energy storage performance. 

When a Renon Xtreme HV 1.0 is paired with the Fronius GEN24 Plus, the system supports a closed-loop DC-coupled architecture that helps deliver efficient energy flow and dependable backup-ready performance. While the inverter and battery manage the energy, the Fronius EBLU device acts as an intelligent bridge to automatically transfer to backup power should a grid outage or weather related event where there’s a loss in power would occur (see all 3 components in the supplied picture).  Renon Smart and Renon Cloud add monitoring and management tools that allow users to track system performance and energy production or consumption in real time. The Renon Xtreme HV 1.0 is certified to IEC 62619, UN 38.3, UL 1973, and UL 9540. 

The Fronius GEN24 Plus brings its own set of practical advantages to the pairing, including UP.storage compatibility, active cooling, Dynamic Peak Manager shade management, and built-in PV Point backup power. Homeowners can also use Fronius Solar.start and Solar.web tools to commission and manage battery-related functions and energy optimization. Fronius Solar.web Premium includes the Energy Cost Assistant, which provides automated battery charging and discharging strategies based on weather forecasts and current pricing. The inverter is certified to UL 1741 SA, UL 1741 SB, UL 1699B, UL 9540, and IEEE 1547-2018 requirements. 

“California installers need options that are both technically sound and easy to specify, and this CEC listing ensures a seamless permitting process for installers,” said Renon USA Owner & CEO, Paul Buckwalter. “The GEN24 Plus and Xtreme HV 1.0 pairing gives the California market a high-voltage storage solution that is efficient, flexible, and ready for residential deployment,” he added. 

“Fronius is excited to expand our partnership with Renon through a CEC-listed pairing that supports installers and homeowners looking for a dependable solution,” said Chris Connell, Head of Solutions for Fronius USA. “Together, we’re giving customers a practical pathway to high-performance residential energy storage,” he said.  

The official CEC listings can be viewed here: Solar Equipment List - CA Energy Commission, Solar Equipment List - CA Energy Commission

Fronius | https://www.fronius.com/en

Renon Power | https://www.renonpower.com/

Cypress Creek Energy and Google joined community leaders, project partners, and elected officials to celebrate the start of construction on the first two phases of Steel River Energy Center, the nation's largest solar energy project to date. The groundbreaking event marked a major milestone for a project that will help meet growing electricity demand while showcasing Arkansas's role in strengthening America's energy and manufacturing supply chains.

The project's first two phases will deliver 1.6 GWdc of new solar generation and 1.9 GWh of new battery storage to the local grid, helping support economic growth and strengthen energy reliability across the region. Once fully complete, the three-phase project will provide 2.5 GWdc of solar and 2.9 GWh of battery storage to the local grid system by 2029. This is enough electricity to power more than 315,000 Arkansas homes each year.

Google Makes Landmark Energy Investment

Under a power purchase agreement (PPA) with project owner and operator Cypress Creek, Google has secured energy from the first two phases of Steel River Energy Center, which represents the largest solar and storage project across Google’s global portfolio to date. 

“Steel River not only represents an important investment in Google’s clean energy commitments, but also in our commitment to Arkansas,” said Will Conkling, Head of Data Center Energy, Google. “This collaboration with Cypress Creek Energy will strengthen the grid and help ensure more reliable, affordable, and clean energy is available for businesses and communities throughout the state.”

The project will connect to the regional grid, adding new generation and storage capacity to help power Arkansas's growing industrial economy, including steel manufacturing, new data centers, and other major employers across the region.

“As Arkansas’s economy continues to grow and attract new industries, ensuring reliable and affordable electricity for our communities and businesses is more important than ever. The Steel River Energy Center represents a significant step forward in meeting our state’s increasing demand for power,” said Laura Landreaux, president and CEO of Entergy Arkansas. “By leveraging solar—one of the lowest-cost sources of new generation—we’re able to keep energy costs manageable for families and businesses across Arkansas. This project not only strengthens our grid, but also supports economic development and helps secure a sustainable energy future for our state.”

Made in America and Built on Arkansas Steel

Located in Mississippi County, Ark., the nation's leading steel-producing county, Steel River Energy Center demonstrates how American manufacturing is expanding to build the next generation of energy infrastructure needed to support economic growth and rising electricity demand.

That growth is being driven in large part by the rapid deployment of solar and energy storage across the country. In the first quarter of 2026 alone, solar and battery storage accounted for 91% of all new electricity-generating capacity added in the United States, fueling demand for American-made steel, solar panels, trackers, batteries, and other critical energy technologies. Today, the clean power industry supports more than 1.4 million jobsand is creating new opportunities for manufacturers, suppliers, and communities across the country.

"Some people still question whether a domestic solar supply chain is possible. This project is proof," said Kevin Smith, Chief Executive Officer of Cypress Creek Energy. "Steel River is the largest solar project with energy storage in the country, and it's being built with 100% U.S.-made solar panels and structural steel. That's good for American manufacturing, good for Arkansas, and good for the country's energy future."

Nearly all of the project's structural steel will come from Mississippi County, Ark. For the project's first two phases, PACO Steel will provide more than 400,000 steel piles manufactured in Blytheville using more than 142,000 tons of steel coils produced at U.S. Steel's Big River Steel facility in Osceola. Each structural steel pile is stamped, "Proudly made in Mississippi County, Arkansas."

Sitting atop those piles are solar trackers from Nextpower, built with domestically produced steel, including significant steel content from Big River. The project will also utilize 100% U.S.-made solar modules from First Solar and battery energy storage systems from LG Energy Solution Vertech, assembled in the United States with battery cells manufactured entirely in North America, predominantly at U.S. factories.

“Steel River Energy Center is a welcome addition to our business community in Arkansas and will provide vital energy storage services to support manufacturing operations,” said Clint O’Neal, executive director of the Arkansas Economic Development Commission. “This facility will be a showcase of American manufacturing, using steel manufactured right in Mississippi County, Arkansas, and we congratulate the company on its groundbreaking.”

Investing in Mississippi County

Steel River Energy Center is expected to create approximately 700 construction jobs per phase and generate an estimated $300 million in local tax revenue over the life of the project, benefiting Rivercrest School District, Mississippi County, and the Town of Wilson. Cypress Creek has selected Moss as the engineering, procurement, and construction (EPC) contractor for the project.

In addition to the project's economic benefits, Google and Cypress Creek are committing a combined $8 million to support local communities through dedicated community investment funds.

Google has committed $5 million in energy affordability initiatives to support local Arkansas residents and K-12 schools. This commitment builds on Google’s existing Greater West Memphis Energy Impact Fund, supporting new community solar subscriptions in West Memphis for low-income customers, residential health and safety improvements and weatherization in Mississippi County, and energy efficiency projects in school districts across the state.

Cypress Creek has committed an additional $3 million through its community investment program, beginning with a $400,000 contribution to Rivercrest School District for the construction of a new playground.

The community funds are intended to support initiatives that strengthen local communities and create lasting benefits for residents across Mississippi County.

"We are grateful for the investment Cypress Creek is making in the future of Mississippi County," said Shantele Raper, Superintendent of Rivercrest School District. "The generous support provided through Steel River Energy Center will benefit our schools well into the future. Cypress Creek's initial investment in the Rivercrest Elementary School Playground is just one example of its commitment to creating opportunities for our students. This state of the art, inclusive playground will provide a place where every child can learn, play, and grow together. These investments and opportunities would not otherwise exist, and they will support our students for years to come." 

Cypress Creek | https://cypresscreekenergy.com/

The U.S. Court of Federal Claims on July 8, 2026, issued its long-awaited trial order on remand in Alta Wind I Owner Lessor C, et al. v. United States, resolving a 13-year dispute over approximately $1 billion in cash grants awarded under Section 1603 of the American Recovery and Reinvestment Act of 2009 (ARRA). The decision addresses a fundamental question in tax controversy and valuation practice: How should a court allocate purchase price among asset classes under the residual method of Internal Revenue Code (IRC) Section 1060 when the parties present competing valuation methodologies – and, critically, whether the anticipated value of a contingent tax benefit (here, the Section 1603 cash grant) may be included in the fair market value of the tangible assets whose basis determines that benefit.

The court's holding carries significant implications for taxpayers involved in renewable energy tax incentive disputes, Section 1060 purchase price allocations and any tax controversy in which income-based and cost-based valuation approaches compete.

Background and Procedural History

Section 1603 of ARRA provided eligible taxpayers with a cash grant equal to 30 percent of the "basis of the tangible personal property" of qualifying renewable energy facilities placed in service during the applicable period. The program was designed to incentivize renewable energy investment during the 2008 financial crisis by providing a direct cash payment in lieu of production or investment tax credits.

The Alta Wind facilities are six wind energy projects located in the Tehachapi region of California that were subject to 25-year power purchase agreements (PPAs) The plaintiffs applied for more than $703 million in Section 1603 grants using an "unallocated" basis method. The U.S. Department of the Treasury rejected that methodology and awarded approximately $495 million based on grant-eligible construction and development costs. The plaintiffs filed suit in 2013 seeking the roughly $206 million difference; the government counterclaimed for an alleged overpayment of approximately $58.9 million.

At the first trial, the court awarded the plaintiffs the full $206 million, finding that the entire purchase price (minus land) constituted basis and that neither goodwill nor going-concern value attached to the transactions – and, therefore, that the residual method of IRC § 1060 did not apply.

The Federal Circuit's Remand Instructions

In 2018, the U.S. Court of Appeals for the Federal Circuit reversed and remanded in Alta Wind I Owner Lessor C v. United States, 897 F.3d 1365 (Fed. Cir. 2018). The appellate court held that the Alta transactions were "applicable asset acquisitions" under IRC § 1060 because three Treasury Department regulation factors were present: 1) intangible assets existed, 2) the total consideration exceeded the aggregate book value of the purchased assets and 3) related transactions (leases and licenses) were part of the deal. Accordingly, the purchase price had to be allocated among the seven asset classes prescribed by Treas. Reg. § 1.338-6(b) using the "residual method": consideration flows sequentially from Class I (cash) through Class V (all other tangible assets), then Class VI (Section 197 intangibles, excluding goodwill) and, finally, Class VII (goodwill and going-concern value). The parties had agreed that only classes V, VI and VII were at issue – and, thus, Class V (eligible) versus VI and VII (ineligible).

The Federal Circuit directed the trial court to make "a factual determination as to the allocation of purchase price" and specifically to "distinguish between turn-key value and goodwill and other intangibles." The court adopted the definition of "turn-key value" from Miami Valley Broadcasting Corp. v. United States, 499 F.2d 677, 680 (Ct. Cl. 1974): The incremental value a buyer would pay for assurance that plant and equipment would work together without costly or time-consuming adjustments. Turnkey value is treated as part of Class V tangible assets, not as a separate intangible.

https://www.hklaw.com/en/insights/publications/2026/07/court-rejects-income-approach-adopts-modified-cost-methodology

Holland & Knight’s expert insight: Critically, the Federal Circuit expressly left open whether the value of anticipated Section 1603 cash grants is separable from the value of the windfarms' tangible personal property – setting up the central question at retrial.

The Court's Key Holding

The court rejected the plaintiffs' income/discounted cash flow (DCF) valuation approach and held that the fair market value of the grant-eligible Class V tangible assets should be determined using the government's cost approach, as modified by the court to correct certain exclusions. Specifically, the court held:

• The plaintiffs failed to adduce sufficient evidence that the fair market value of grant-eligible tangible assets should include nearly 98 percent of the anticipated cash grant's value; the inclusion was impermissibly circular and unsupported by empirical market evidence.
• The anticipated Section 1603 cash grant value is not allocable to Class V tangible property under the Section 1060 residual method. The grant is a lump-sum reimbursement of eligible-asset costs, not itself a component of those assets' fair market value.
• The anticipated cash grant does not constitute "turn-key value" because the plaintiffs presented no evidence that the grant reflected the incremental value a buyer would pay for assurance that the facility's tangible assets would work together.
• The cost approach – starting from grant-eligible costs in the cost segregation reports, including interest during construction and the Oak Creek development fee, and applying a developer-profit markup (15 percent for Alta I and 20 percent for Alta II through VI) – best calculates the value of grant-eligible assets consistent with the Federal Circuit's remand instructions. This was a factual determination by the court.
• DCF is not inherently defective as a valuation methodology under Section 1060; the flaw in the plaintiffs' case was evidentiary, not methodological.

Significance for Tax Controversy and Dispute Resolution

The Alta Wind decision carries broad significance for tax controversy practitioners beyond the Section 1603 context:

• Evidentiary Rigor in Valuation Disputes. The decision reinforces that in disputes governed by Section 1060's residual method, taxpayers bear a demanding evidentiary burden to support any valuation methodology with market-based, asset class-specific evidence – not merely theoretical financial models. Generalized assumptions about how income streams should be allocated among asset classes will not suffice where the record lacks empirical support for the specific allocation advanced – i.e. a factual inquiry, hence evidentiary, not a per se legal/methodological dispute.
• Circularity as a Fatal Flaw. The court's rejection of the plaintiffs' DCF approach on circularity grounds sends a clear signal: Where a valuation methodology uses the value of a tax benefit as an input to determine the basis on which that same benefit is calculated, courts will apply heightened scrutiny and demand affirmative evidence that the approach produces reliable, noncircular results.
• Cost Approaches Remain Powerful. The decision confirms that well-supported cost-based valuations – particularly those grounded in contemporaneous cost segregation studies prepared for regulatory or administrative purposes – can prevail over sophisticated income/DCF approaches, especially where the income methodology relies on assumptions that conflate distinct asset classes or attribute contingent benefits to tangible property without empirical market support.
• Consistency Across Proceedings Matters. The court's reliance on the plaintiffs' California property-tax filings – which characterized the cash grant as "separable and unrelated to the operations" – to undermine their litigation position underscores the enduring principle that inconsistent characterizations of asset or benefit values across different proceedings create significant litigation risk.
• DCF Is Not Per Se Improper Under Section 1060. Importantly, the court declined to adopt the government's broadest argument that DCF should never be applied in Section 1060 allocation disputes involving multiclass asset streams. The flaw was evidentiary, not methodological. This preserves room for well-supported DCF approaches in future disputes – but taxpayers must present rigorous, record-supported evidence connecting the income analysis to specific asset classes.

Holland & Knight | https://www.hklaw.com/en

Following a year of community solar growth in Illinois, Aligned Climate Capital (Aligned) has acquired Armoracia, a 7.3 MW DC community solar project in Collinsville Township, IL., through its Aligned Solar Partners (ASP) strategy. The project will deploy Planted's innovative power deployment platform across a 16-acre site. Armoracia will serve subscribers through the Illinois Adjustable Block Program on the Ameren Illinois grid and is expected to reach commercial operation later this year. The project combines Aligned’s execution and operations expertise with Planted’s platform, demonstrating how integrated solar deployment can work at scale in community solar.

“This acquisition matters because it helps establish Planted’s platform as financeable infrastructure at commercial scale. Their platform is built for land-efficient deployment, making solar work on sites where conventional approaches would require significantly more land,” said Peter Davidson, CEO of Aligned Climate Capital. “Until now, developers have had a limited ability to commit a real pipeline to Planted projects without an institutional buyer prepared to finance construction and own the assets. Aligned’s acquisition of Armoracia helps solve that problem and creates a financing precedent for the technology at commercial scale.”

Currently under construction, the 16-acre ground-mount project combines community solar generation with continued productive land use through Planted’s high-density terrain-following arrays, which require no grading and leave more room for agricultural activities, pollinator habitat and other compatible uses within and around the array. Planted combines powerful software, terrain-following arrays, and field automation into a single system to deploy faster on the sites that constrain most community solar development: irregular parcels, moderate slopes, and limited acreage.

"Community solar runs on tight land budgets and execution certainty," said Eric Brown, CEO of Planted. "Armoracia puts 7.3 MW on 16 acres and leaves the land usable long after the array's life. That's the kind of outcome Aligned's holistic approach makes available to the broader community solar market."

Aligned Solar Partners acquires distributed solar and energy storage projects from development partners across the U.S., finances their build-out, and manages the assets over time. The strategy focuses on middle-market solar projects that are larger than typical rooftop systems but smaller than utility-scale developments. These projects can serve local energy demand through community solar, commercial and industrial, net metering, or other state-based programs.

Armoracia establishes a financing structure for Planted projects that developers can now point to. Community solar developers interested in bringing Planted into their pipeline can learn more at plantedsolar.com or reach out directly to discuss site compatibility.

Planted Solar | plantedsolar.com

Aligned Climate Capital | https://alignedclimatecapital.com/

ECL and PowerCell Group AB (publ) announced a strategic partnership to deploy industrial-grade hydrogen fuel cell power across ECL's AI data center platform. The agreement comprises a firm purchase order for PowerCell PS190 fuel cell systems, alongside a separate non-binding memorandum of understanding between ECL and PowerCell for approximately 300 MW of additional hydrogen fuel cell capacity as ECL expands its FlexGrid data center footprint. The partnership is underpinned by PowerCell's industrial partnership with Bosch, its manufacturing partner and largest shareholder, which provides the manufacturing foundation to deliver at industrial scale.

Initial deployment begins at ECL's 35MW CSC-1 campus in Santa Clara, California, where containerized PowerCell fuel cell systems will integrate into ECL's FlexGrid microgrid architecture alongside grid power, natural gas and battery storage. The deployment expands on an existing PowerCell deployment at ECL's MV-1 facility in Mountain View, California, where hydrogen has been used as the primary power source for more than two years.

“We evaluated multiple fuel cell technologies under real operating conditions over two years at our MV-1 facility before selecting PowerCell and Bosch,” said Yuval Bachar, founder and CEO of ECL. “This is not a pilot or a proof of concept. We are deploying these PowerCell PS190 units with the operational data to back it up, and we are signing an MOU for an additional 300 MW because the demand from AI operators for power in constrained markets far exceeds what any single grid connection can deliver.”

PowerCell, which spun out of the Volvo Group, brings more than 25 years of fuel cell experience and over one million hours of field data across automotive, marine and stationary power applications. Bosch, PowerCell's largest shareholder and strategic manufacturing partner, provides large-scale production capability and U.S.-based service infrastructure to support ECL deployments.

“ECL is among the very few operators who not only run hydrogen in production but understand how to orchestrate it intelligently alongside storage and other energy sources as one integrated system,” said Richard Berkling, CEO of PowerCell Group. “Our firm order for PowerCell PS190 systems, alongside our broader non-binding MOU, sends a clear signal that hydrogen-powered AI data centers are moving from first-of-kind toward industrial scale.”

Bosch supports this scalable approach by providing the industrial manufacturing foundation. The company also delivers the local North American service needed to integrate these hydrogen systems into core data center infrastructure. “Bringing hydrogen fuel cells to industrial scale requires more than strong technology; it requires manufacturing discipline, predictable quality and dependable lifecycle support,” said Thilo Müller, Senior Vice President Fuel Cell Business at Bosch. “Bosch is proud to bring that industrial foundation to the partnership with PowerCell and ECL. Our goal is to turn promising technology into reliable, long-term infrastructure.”

PowerCell's Distributed Master Controller platform will integrate with ECL's Lightning real-time management system to manage dynamic load balancing across fuel cells, batteries, the grid, and natural gas at each FlexGrid site.

ECL is accepting tenant inquiries for AI infrastructure deployments in 2027-2028. 

ECL | www.ecldc.com

PowerCell | www.powercellgroup.com

Bosch Power Solutions | https://www.manufacturing-co-intelligence.com/