Company: HYSR
Filing Date: 2025-09-15
Form Type: 10-K
Source: 0001213900-25-087311
Chunk: 8

Company: SUNHYDROGEN, INC.
Filing Date: 2025-09-15
Form: 10-K
Item: Item 1
Chunk 8
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 versatile and scalable solutions to meet
global clean energy needs.

5

Water Splitting

In the process of splitting
a water molecule, input energy is transferred into the chemical bonds. Essentially, manufactured hydrogen serves as a carrier or battery-like
storage of the input energy. If the input energy is from fossil fuels, such as oil and gas, then carbon fossil fuel energy is simply transferred
into hydrogen. If the input energy is renewable, such as solar or wind, then new and clean energy is stored in hydrogen.

While the concept of water
splitting is very appealing, the following industry-wide challenges must be addressed for renewable hydrogen to be commercially viable:

1) Efficiency & Simplicity.
Hydrogen is an energy carrier—its cleanliness depends on the energy used to make it. Conventional electrolyzer systems, even when
powered by renewable electricity, face high levelized costs because electricity is their largest input expense. They also require additional
power electronics, which introduce further inefficiencies and add to overall system cost and complexity.

By contrast, SunHydrogen’s
integrated photoelectrochemical (PEC) architecture converts sunlight and water directly into hydrogen inside each panel in a single step.
By minimizing conversion stages and eliminating the need for costly external power conditioning, our design is engineered to store more
of the captured solar energy in hydrogen while reducing balance-of-system requirements. This streamlined approach not only lowers cost
but also makes our solution well suited for distributed and off-grid applications where traditional electrolyzer infrastructure is impractical.

2) Water Flexibility.
Many hydrogen systems require ultra-pure water to protect membranes and components, which limits where they can operate. SunHydrogen is
developing catalysts and cell designs to operate across acidic or alkaline conditions and to tolerate selected non-potable water sources—including
certain wastewater streams—with appropriate conditioning. This broadens usable water supplies, lowers operating costs, and enables
deployment in regions where clean water is scarce.

Technology

SunHydrogen’s photoelectrochemical
(PEC) panels convert sunlight directly into hydrogen by generating electrons and holes in a semiconductor and driving them to catalysts
where the following water-splitting reactions occur.

    ●
    Cathode (reduction): 2H+ + 2e- → H2

    ●
    Anode (oxidation): H2O → ½O2 + 2H+ + 2e-

Basic steps involve:

●Sunlight creates electron–hole pairs in the semiconductor.