Caterpillar to Launch Demonstration Project Using Hydrogen-Fueled Combined Heat and Power System

Rhea-AI Summary

Caterpillar Inc. (NYSE: CAT) announced a three-year hydrogen-fueled combined heat and power (CHP) demonstration project in partnership with District Energy St. Paul, supported by the U.S. Department of Energy. The project will assess hydrogen fuel options for existing energy-efficient engines, integrating with local infrastructure to enhance heat and electricity efficiency. Caterpillar, leveraging 35 years of experience, aims to help customers achieve climate goals. The company reported $51.0 billion in sales for 2021, showcasing a commitment to sustainable energy solutions.

Positive

• Partnership with District Energy St. Paul enhances sustainable energy efforts.
• Project partially funded by the U.S. Department of Energy, ensuring financial backing.
• Demonstration of advanced hydrogen fuel technology reflects innovation commitment.

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• None.

DEERFIELD, Ill., May 31, 2022 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) today announced a three-year project with Minnesota-based District Energy St. Paul to demonstrate a hydrogen-fueled combined heat and power (CHP) system. The project is supported and partially funded by the U.S. Department of Energy and backed by the National Renewable Energy Laboratory.

"Caterpillar is focused on supporting our customers with reliable, sustainable power solutions," said Joe Creed, Caterpillar group president of Energy and Transportation. "This hydrogen demonstration project will enable us to evaluate additional hydrogen fuel options for an existing energy-efficient engine, providing even more possibilities for helping our customers meet their climate-related goals and objectives."

CHP systems from Caterpillar provide both electricity and heat simultaneously, increasing overall efficiency and reducing exhaust emissions. To assess the potential of a hydrogen-fueled CHP system under real-world operating conditions, power and heat from the demonstration project will integrate into District Energy St. Paul's electrical and thermal infrastructure. District Energy St. Paul distributes chilled water and hot water to heat and cool buildings and single-family homes in downtown St. Paul, Minnesota, and adjacent areas.

Scheduled to start early next year, the demonstration project builds on Caterpillar's 35 years of experience with high-hydrogen fuel. The company currently offers a 1250 kW Cat^® generator set capable of operating on 100% hydrogen, including fully renewable green hydrogen, on a designed-to-order basis, as well as commercially available power generation solutions from 400 kW to 4.5 MW that can be configured to operate on natural gas blended with up to 25% hydrogen.

About Caterpillar
With 2021 sales and revenues of $51.0 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels.

Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

 

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SOURCE Caterpillar Inc.

FAQ

What is the significance of Caterpillar's hydrogen demonstration project?

Caterpillar's hydrogen demonstration project aims to evaluate hydrogen fuel options for energy-efficient engines, enhancing sustainability efforts in energy production.

When does the hydrogen project with District Energy St. Paul start?

The hydrogen demonstration project is scheduled to start early next year.

How does Caterpillar's project align with climate goals?

The project seeks to develop more sustainable power solutions, helping customers meet their climate-related objectives.

What was Caterpillar's revenue in 2021?

Caterpillar reported $51.0 billion in sales and revenues for 2021.

What is the role of the U.S. Department of Energy in this project?

The project is supported and partially funded by the U.S. Department of Energy, promoting innovation in sustainable energy technologies.