Alléo Energy has announced a new process that turns cellulosic waste into hydrogen. The process produces over 100 kilograms of hydrogen per ton of biomass. It creates abundant, carbon-negative biogas hydrogen that can have negative Carbon Intensity scores.
This method transforms waste into clean energy and offers a major step for the hydrogen market. The market is valued at $280 billion in 2025 and is expected to grow at 9.3% annually through 2030.
Alléo’s green hydrogen is sustainable and profitable without needing subsidies. The process uses less than 63% of the energy required by water electrolysis. This makes production cheaper and more scalable.
The company has achieved commercial-scale production using a reactor that runs continuously for multiple days. For every kilogram of hydrogen, Alléo plans to sequester 6 kg of CO₂. This results in a six-fold reduction in greenhouse gas emissions.
“In a few months, we will start selling hydrogen into the transportation market from our plant in Bay Minette,” said CEO Simeon Chow. “Our green hydrogen from cellulosic waste is sustainably abundant and profitable without subsidies. It’s a real game-changer for renewable energy and biogas utilization.”
The Bay Minette plant in Alabama has proven the technology’s scalability. The first reactor was operational in early 2023, producing liquid fuels. A second reactor was added in early 2025, demonstrating safety and reliability over several days of continuous operation.
By converting biogas-related waste into valuable hydrogen, Alléo’s process not only enhances renewable energy production but also significantly reduces greenhouse gas emissions, marking a major step forward in sustainable energy solutions.
