Alléo Energy, a leader in sustainable energy innovation, announced a major breakthrough in clean hydrogen production with the successful deployment of its proprietary cellulose-to-hydrogen technology.

This cutting-edge process converts cellulosic waste into carbon-negative green hydrogen at commercial scale—yielding more than 100 kilograms of hydrogen per ton of feedstock.

Unlike traditional methods, Alléo’s process achieves remarkable efficiency, requiring less than 63 percent of the renewable energy input typically needed for water electrolysis. This reduced energy demand allows Alléo to produce hydrogen at significantly lower costs, making it not only commercially viable without subsidies but also scalable, safe, and reliable for widespread global adoption.

The company’s first commercial facility in Bay Minette, Alabama—operational since 2023—has now validated the technology at scale. Following the successful operation of its initial reactor focused on liquid fuels, Alléo commissioned a second reactor in early 2025 dedicated to green hydrogen production. Multi-day continuous operations have demonstrated the system’s reliability, yield performance, and safety, confirming the technology’s readiness for broader deployment.

Critically, Alléo’s hydrogen is not just clean—it’s carbon-negative. For every kilogram of hydrogen produced, the process is designed to sequester six kilograms of CO₂, resulting in a six-fold reduction in greenhouse gas emissions. This positions Alléo at the forefront of the global hydrogen economy, which is projected to reach a market value of $280 billion in 2025 and grow at a CAGR of 9.3 percent through 2030.

“In a few short months, we expect to begin selling hydrogen into the transportation market from our Bay Minette plant,” said Simeon Chow, CEO of Alléo Energy. “Our carbon-negative green hydrogen is sustainably abundant and doesn’t require subsidies to be profitable—it’s a true game-changer. We’re incredibly proud of what our team, investors, and partners have achieved. Their support has brought us to this milestone, and we believe their patience will be rewarded as we expand our footprint across multiple global sites.”