PowerTap Hydrogen Capital Corp. (MOVE) (MOTNF) (“PowerTap” or “MOVE”) provides an update on the activities of PowerTap and its subsidiary,
PowerTap Hydrogen Fueling Corp.
Further to the Company’s press release on November 23, 2022, PowerTap Hydrogen Fueling Corp., in conjunction with T2M Global, PowerTap’s technology partner, have further progressed the engineering and supply chain validation of the PowerTap Gen3 Modular Hydrogen Production and Dispensing Unit (MHPDU) in PowerTap’s plan to establish light-duty and heavy-duty fuel cell electric vehicle (FCEV) hydrogen (H2) refueling stations by 2024. As part of T2M Global's progress on supply chain and technology validation of PowerTap's Gen3 unit, T2M has made significant advancement towards finalizing a compression partnership that would substantially improve station uptimes over the current unacceptable 40% to 65% uptimes of existing H2 fuel stations (using H2 produced offsite) in California. T2M and the compression partner are finalizing the details to provide near 100% uptimes to enhance the H2 FCEV ownership experience. In addition, T2M has played in critical role in supporting corporate development in which PowerTap has been engaged with potential industry partners including possible station partners, vehicle OEMs, industry consortium partnerships and for government funding, both in the USA and internationally.
As announced in the Company’s press release on February 8, 2023, PowerTap appointed Mr. Salim Rahemtulla, previously President of the USA subsidiary, PowerTap Hydrogen Fueling Corp. (“USA subsidiary”), as new CEO of the USA subsidiary. Mr. Rahemtulla commented on the importance of PowerTap’s Gen3 onsite blue hydrogen technology, “As incoming CEO of the USA subsidiary, I am focused on communicating to the market the importance of PowerTap’s patented on-site blue hydrogen (H2) production solution from a cost, carbon intensity, technology, and reliability standpoint. What differentiates us from the traditional Compress-Store-Dispense (CSD) stations (i.e., the way that most all H2 fueling stations are set globally - off-site production of H2, shipping of H2 in tankers to stations and onsite storage and dispensing) is that, first and foremost, we avoid H2 transport costs which also significantly decrease carbon intensity (CI) and increase the reliability of H2 supply which will lead to needed lower prices at the pump for FCEV customers. Secondly, with our renewable natural gas (RNG) feedstock (low to negative CI biogas or biomethane coming from dairy farms, cow and pig farms, food waste, landfills, etc.), we produce carbon neutral or negative carbon H2, which is critical to our participation in the State of California’s Low Carbon Fuel Standard (LCFS) program. The USA subsidiary's participation in the LCFS program (if it qualifies) will bring us significant revenue for 15 years based on our 1,250-kg H2 per day capacity, even without sales of H2 from dispensing. Thirdly, we believe that PowerTap’s Gen3 solution will deliver the lowest cost hydrogen available in California. With current retail hydrogen pricing in California ranging up to $27.50 per kg at the pump, from under $20/kg in 2020, prices are too high for H2 vehicle adoption and puts PowerTap in an excellent position to build market share in the market. PowerTap believes that in addition to being able to produce H2 at the lowest cost in California, our hydrogen production method is superior to green hydrogen (using electrolysis) produced in California using electricity from the electricity grid, due to a lack of a green electricity grid across most of the USA and high electricity costs.” Mr. Rahemtulla further commented that, “I am thrilled to take this position and lead PowerTap to create significant value for all our stakeholders, while playing a large part in decarbonizing our environment!”