Alléo Energy, a pioneer in the sustainable energy sector, has unveiled a new, commercial-scale system for producing carbon-negative green hydrogen from cellulosic waste.
In a landmark announcement for the renewable energy sector, Alléo Energy has revealed a proprietary process that produces carbon-negative green hydrogen from abundant cellulosic waste. The company’s new system, which is already operating at commercial scale at its Bay Minette, Alabama facility, marks a significant step forward in the global effort to decarbonize energy markets.
Alléo's technology is capable of yielding over one hundred kilograms of hydrogen for every ton of cellulosic waste converted. What sets this process apart is its ability to achieve negative Carbon Intensity (CI) scores, actively removing carbon from the atmosphere. The company plans to sequester 6 kg of CO2 for every kilogram of hydrogen produced, which they project will result in a six-fold reduction in greenhouse gas emissions.
The new method stands out not only for its environmental impact but also for its economic viability. Alléo's process requires less than 63% of the renewable energy needed for conventional water electrolysis, leading to production costs that are well below competing initiatives. This efficiency eliminates the need for subsidies, making the company's green hydrogen scalable, safe, and reliable for widespread adoption.
"Alléo's carbon-negative green hydrogen is sustainably abundant and doesn't require subsidies to be profitable; it's a game-changer," said Simeon Chow, CEO of Alléo Energy. "In a few short months, we expect to begin selling H2 into the transportation market from our first commercial plant in Bay Minette."
The Bay Minette plant, operational since 2023, has already demonstrated its reforming technology on a commercial scale for producing liquid fuels. The facility's initial reactor achieved nameplate production in early 2023 for liquid fuels, and a second reactor was commissioned in Q1 2025, proving the technology's scalability, yield, and reliability in multi-day continuous operations. This successful track record in producing renewable diesel from wood waste, which has been independently certified, provides a strong foundation for the company's pivot to green hydrogen production.
The company's focus on converting waste materials addresses a major global challenge while creating a high-value product. As the world seeks to transition away from fossil fuels, the hydrogen market is poised for rapid growth, with a projected compound annual growth rate (CAGR) of 9.3% through 2030. Alléo Energy is positioning itself to be a key player in this market by offering a solution that is both environmentally superior and economically sound.
