Hyzon Motors announced that it is now shipping its first trucks of hydrogen fuel to Europe after the truck company merged with the firm Decarbonization Plus Acquisition Corp.
The dispatch truck company added that it is also preparing to begin distributing its hydrogen fuel in the United States.
Hyzon Motors Hydrogen Fuel Distribution
Hyzon has not released its revenue after the merger, but it did reveal that it is banking on the massive injection of capital from its transaction with Decarbonization Plus. The company received $500 million from the merger, excluding its sales from the hydrogen fuel.
The truck company reported a net loss of $9.4 million for the quarter. It includes $3.5 million in research and development expenses, according to Freightwaves.
Furthermore, some news outlets reported that it has $517 million in cash on hand, enough to reach free cash flow until 2024 without selling more equity.
According to the company's CFO, Mark Gordon, aside from manufacturing hydrogen fuel cell powertrains, Hyzon is also manufacturing hydrogen fuel production hubs.
In April, Hyzon signed a Memorandum of Understanding or MOU with Raven SR. The joint venture includes the manufacturing of 100 hydrogen fuel production hubs.
Gordon also stated that the Hyzon would deliver 85 fuel cell vehicles by the end of 2021. This is the truck company's first-ever revenue, and it is expected to reflect in the next quarter.
Orders and MOUs under contract have increased to $83 million from $55 million as of Apr. 2021, but a lot of the MOUs are non-binding.
One example is Hyzon's agreement with MRPEIS, an Austrian grocer, for 70 trucks in 2022. Also, Hyzon has a bit of an issue with technology adoption because a lot of their customers have never seen or even used a hydrogen fuel-cell vehicle before.
Since customers are not familiar with how it works, the company mainly focuses on back-to-base operations instead of long trips because the latter needs a tougher hydrogen refueling network.
Importance of Hydrogen Fuel
Hydrogen is a gas that has captured the attention of numerous private sectors and the government. The interest in hydrogen fuel grew thanks to the green energy legislation, green recovery plans, and the growing concern that people must take action to combat climate change.
The hydrogen industry is expected to expand in the next couple of years. The European Clean Hydrogen Alliance believes that both public and private sectors will invest €430 billion or $504 billion in hydrogen by 2030 in order to meet the emissions target.
Globally, the hydrogen industry is predicted to grow to $201 billion by 2025, according to TechCrunch.
According to Markets and Markets, this is considered a massive jump compared to its overall net worth of $130 billion in 2020.
Hydrogen is mostly known to fuel transportation such as cars, buses, trains, and trucks. Toyota, BMW, and Mercedes-Benz are examples of car manufacturers working on vehicles powered by hydrogen fuel.
However, it can also fuel a lot of things.
Currently, hydrogen is used in petroleum refineries, and it is also used to manufacture chemicals, steel, biofuels, and ammonia fertilizers.
Hyzon did not specify when hydrogen fuels will be distributed in the United States as the truck company is shipping its products to Europe to serve as its test market.
This article is owned by Tech Times
Written by Sophie Webster