Exclusive: VSParticle claims material breakthrough that could slash green hydrogen cost to $1/kg

Dutch startup VSParticle has developed a new technology that could drastically reduce the cost of green hydrogen production.

The company has developed a “nanoporous” layer that lets PEM electrolysers – machines that split water into hydrogen and oxygen – work just as well while using up to 90% less of the rare, expensive metal iridium.

“This is the missing link the industry has been searching for to scale PEM electrolysis to the multi-gigawatt level,” said Aaike van Vugt, VSParticle's co-founder and CEO.

Promising results

The technology was tested in collaboration with US hydrogen producer Plug Power and the University of Delaware's Centre for Clean Hydrogen.

Plug Power, which generated $629mn in revenue in 2024 and employs over 2,000 people, said the technology shows exceptional durability.

During its tests at the Centre, it ran an electrolyser equipped with the nanomaterial continuously for more than 8,000 hours – roughly equivalent to a ten-year lifetime. The layer achieved the same performance as the previous state-of-the-art layers – but with far less iridium.

Dr. Yushan Yan, founding director of the Centre for Clean Hydrogen, who oversaw the study, said he believes the widespread adoption of VSParticle's nanomaterial could "prevent an iridium supply crisis" and "fundamentally transform the economics of green hydrogen production.”

Yan predicts that it could bring green hydrogen costs down to around $1/kg, making it competitive with conventional hydrogen made from natural gas, which currently runs $1.50–2.50/kg.

The iridium bottleneck

Green hydrogen – produced using renewable electricity – still remains more expensive than fossil-based grey or blue hydrogen. That’s partly because traditional electrolysers rely on iridium, of which only 7–8 tonnes are mined globally each year.

That's bottleneck has pushed the industry to race to cut iridium use in electrolysers. At Rice University in Texas, engineers recently created a ruthenium-based catalyst that slashes iridium demand by around 80% while maintaining strong performance over 1,500 hours of operation. Meanwhile, scientists in Germany are developing nickel-based catalysts for alkaline membrane electrolysers – an approach that could eventually remove iridium altogether.

'Timing is a big challenge'

Van Vugt says all the material breakthroughs to create its nanomaterial at scale have already been made. What it seeks now is widespread commercial uptake, which could still take a while.

“Timing is a big challenge,” said Van Vugt. “Key customers like Plug Power need to test our nanoporous layer for 20,000 hours to prove durability. But the moment it is proven, they want to ramp up volumes. This means that we need to start building the production facility while the durability tests are ongoing.”

VSParticle now plans to expand its in-house manufacturing to support pilot and early commercial projects with several leading electrolyser makers. Multiple “tier-one” partners are set to begin integration and large-scale testing in 2026, the company said.

"After becoming the key technology supplier for nanoporous layers in electrolysis, VSP will focus on the battery market," said Van Vugt. "The chemical reactions in batteries are almost the same as in electrolysis."