Hyzon Motors is closing in on production of its 200-kilowatt fuel cell stack, a single zero-emissions unit for heavy-duty trucks. It is lighter and more efficient than the industry-standard twin stacks.
The Rochester, New York-based Hyzon shucked off two years of federal investigations in recent months. It agreed to pay $25 million to the Securities and Exchange Commission over phantom orders for its powertrain technology.
Now free to focus on producing hydrogen-powered fuel cells, the company has generated $3.6 million in revenue as it begins delivering the powertrains — 14 units year to date. One makes drayage runs in the ports of Long Beach and Los Angeles. European customers purchased three. Another 10 power coach buses in Australia.
Hyzon raises production estimate
Hyzon forecasts that it will produce 15-20 fuel cell stacks under commercial agreements this year. The previous estimate was 10-20 fuel cell systems. The company’s facility in Bolingbrook, Illinois, is on track to start producing the company’s 200-kilowatt single stack fuel cell in 2024. Hyzon estimates it has about $5 million of capital expense remaining to get there.
The Bolingbrook facility is projected to have initial annual capacity for more than 700 200kW fuel cell systems on three shifts. That should meet demand through 2025. After that, Hyzon anticipates expanding capacity through lean production methods.
Hyzon signed a commercial agreement with New Zealand’s largest heavy-duty truck fleet owner, TR Group, for up to 20 vehicles powered by the 200kW fuel cell system. Purchases depend on the outcome of a trial planned for March 2024.
Cash burn continues to decline
“This was a remarkable quarter as Hyzon continues to accelerate the global transition to clean energy by developing and commercializing our proprietary, leading zero-emission fuel cell technology,” Parker Meeks, Hyzon CEO, said in a news release.
Hyzon continues to reduce its cash burn. Counting unrestricted cash, cash equivalents and short-term investments, Hyzon had about $137.8 million on its books at the end of Q3, down $34.6 million from $172.4 million on June 30. Its liquidity stood at $129 million as of Oct. 31.
“Hyzon is at an inflection point,” Meeks said, referring to financial support for hydrogen from federal programs like the Inflation Reduction Act. “In addition to our cash burn reduction momentum, we remain focused on opportunistically raising capital, including a possible strategic raise which we continue to explore.”
The company did not change its Q2 position of considering a merger or being acquired.
Related articles:
Hyzon Motors agrees to $25M SEC fine to settle fraud case
Hyzon considers sale of fuel cell business to raise capital
Refocused Hyzon Motors catches up on delinquent financial filings
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