Alléo Energy Targets Hydrogen Supply Chain with Carbon-Negative System
Alléo Energy has developed a carbon-negative hydrogen system that converts cellulosic waste into clean fuel, cutting emissions sixfold. Its Bay Minette, Alabama plant is set to begin commercial hydrogen sales within months.
(P&GJ) — Alléo Energy has unveiled a new hydrogen production system that converts cellulosic waste into carbon-negative green hydrogen, achieving yields of more than 100 kilograms per ton of waste.
The company said its proprietary process achieves negative Carbon Intensity (CI) scores that outperform competing methods. Unlike conventional electrolysis, the process requires less than 63% of the benchmark renewable energy input, lowering production costs and improving scalability.
Alléo expects to sequester six kilograms of CO₂ for every kilogram of hydrogen produced. “In a few short months, we expect to begin selling H₂ into the transportation market from our first commercial plant in Bay Minette,” said Simeon Chow, CEO of Alléo Energy. “Alléo’s carbon-negative green hydrogen is sustainably abundant and doesn't require subsidies to be profitable; it’s a game-changer.”
The Bay Minette, Alabama facility has operated since 2023, initially focusing on liquid fuels. A second reactor commissioned in early 2025 demonstrated multi-day continuous operations at commercial scale, confirming yield, safety, and reliability. Alléo plans to scale production across multiple global sites in the coming years.