Hyliion and Jardine Engineering Corporation Sign Memorandum of Understanding to Explore the KARNO Generator's Potential in Asian Power Generation Markets

Rhea-AI Summary

Hyliion Holdings Corp. (NYSE: HYLN) has signed a non-binding Memorandum of Understanding (MOU) with Jardine Engineering (JEC) to explore the potential of Hyliion's KARNO generator in power generation projects across Asian markets. The KARNO generator is a fuel-agnostic, linear generator capable of operating on various fuels, offering lower maintenance costs and reduced emissions compared to conventional technologies.

This collaboration aims to combine Hyliion's innovative KARNO technology with JEC's extensive market presence and engineering expertise in the Asia Pacific region. The partnership is expected to provide sustainable power solutions and create new opportunities in Hong Kong, Macau, and other markets where JEC operates.

Positive

• Expansion into Asian power generation markets through partnership with established regional player
• Potential for increased adoption of KARNO generator technology in new geographical areas
• Alignment with growing demand for sustainable and efficient power generation solutions

Negative

• None.

Insights

Market Research Analyst

This MOU between Hyliion and JEC represents a strategic move into the Asian power generation market, but its immediate impact is While it opens doors for Hyliion's KARNO technology in a new geographical area, it's important to note that this is a non-binding agreement, serving more as an exploratory step rather than a concrete business deal. The potential market size in Hong Kong, Macau and other JEC-operated regions could be significant, but it's too early to quantify the financial impact. Investors should view this as a long-term development rather than a short-term catalyst. The partnership could enhance Hyliion's global presence, but tangible results may take time to materialize. Keep an eye on future binding agreements or specific project announcements for more substantial impact.

Tech Expert

Hyliion's KARNO generator technology stands out for its fuel-agnostic approach, which is a significant advantage in the evolving energy landscape. The ability to use multiple fuel types, including hydrogen and biogas, positions it well for various market needs and future energy transitions. The linear generator architecture is innovative, potentially offering improved efficiency and lower maintenance costs compared to traditional generators. However, the technology's real-world performance and cost-effectiveness are yet to be proven at scale. The collaboration with JEC could provide valuable testing grounds for the KARNO technology in diverse applications. Investors should monitor the progress of pilot projects and any performance data that emerges from this partnership to gauge the technology's true potential and market readiness.

Financial Analyst

While this MOU signifies potential future growth, its immediate financial impact on Hyliion is likely minimal. As a non-binding agreement, it doesn't guarantee revenue or specific project commitments. However, it does indicate Hyliion's efforts to expand its market reach and diversify its customer base, which could be positive for long-term growth prospects. The company's focus on sustainable energy solutions aligns with global trends, potentially positioning it for future success. Investors should consider this development in the context of Hyliion's overall financial health, current revenue streams and burn rate. The cash position and ability to fund ongoing R&D and market expansion efforts will be crucial. Watch for any updates on binding agreements, project timelines, or revenue projections stemming from this partnership in future financial reports or investor communications.

 

AUSTIN, Texas--(BUSINESS WIRE)-- Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a developer of sustainable electricity-producing technology, today announced that it has entered into a non-binding Memorandum of Understanding (MOU) with Jardine Engineering Corporation Limited (“JEC”).

The MOU represents the first step toward a commitment from both companies to work together to explore the potential of Hyliion’s advanced KARNO^TM technology in power generation projects and to collaborate jointly on select business opportunities in Hong Kong, Macau, and other markets where JEC operates. The KARNO generator is a groundbreaking fuel-agnostic solution that utilizes a linear generator architecture to produce electricity both economically and efficiently. Capable of operating on various fuels, including hydrogen, natural gas, biogas, and propane, the generator is expected to offer lower maintenance costs and a significantly reduced emissions profile compared to conventional technologies.

With a history dating back to 1923, JEC is one of the key leaders of power system business in Hong Kong and represents top brand electric generator suppliers from the US and Europe. Headquartered in Hong Kong, JEC is a listed specialist contractor for public works and is a premier provider of electrical and mechanical engineering solutions in the Asia Pacific region. This relationship aims to leverage the advanced capabilities of Hyliion’s KARNO generator, along with JEC's extensive domain knowledge, market presence, and project implementation capabilities, to provide innovative, sustainable power solutions in this dynamic region.

"Hyliion's KARNO generator technology aligns perfectly with our commitment to providing advanced and sustainable engineering solutions," stated Mr. Noky Wong, Chief Executive of JEC. “This collaborative effort with Hyliion represents a strategic step forward in advancing our capabilities and offerings in the power systems sector. Together, we look forward to exploring new ways to enable our customers to achieve engineering breakthroughs in ever more efficient and sustainable ways."

Thomas Healy, Founder and CEO of Hyliion, added, "We are thrilled to partner with JEC, a leader in integrated power systems with a strong presence in Asia. This collaboration is a significant step in our mission to provide sustainable and innovative energy solutions globally. By combining our innovative KARNO technology with JEC’s extensive market knowledge and engineering expertise, we are confident in delivering exceptional value and performance to meet the evolving energy needs of our customers worldwide."

The MOU between Hyliion and JEC is subject to the execution of a binding agreement. For more information about Hyliion and its innovative electrification solutions, please visit hyliion.com. For more information about Jardine Engineering Corporation Limited and how it helps engineer a better Asia, please visit jec.com.

About JEC

JEC is a leading provider of engineering services, sourcing, and contracting expertise. It enables customers to operate their facilities at world-class standards by providing the professional expertise to design, supply, and install building and specialized processes; facility operation and management; asset enhancement and energy management; and the sourcing of electrical and mechanical equipment and architectural fixtures.

JEC is headquartered in Hong Kong and operates throughout Asia. JEC is a member of the Jardine Matheson Group.

About Hyliion

Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company’s primary focus is to provide distributed power generators that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, with research and development in Cincinnati, Ohio, Hyliion is initially targeting the commercial and waste management industries with a locally deployable generator that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy.

Forward Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage the Company with a history of losses; our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business, and the other risks and uncertainties described under the heading “Risk Factors” in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2024 for the year ended December 31, 2023. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion’s operations and projections can be found in its filings with the SEC. Hyliion’s SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240819131516/en/

Hyliion Holdings Corp.

press@hyliion.com

Jardine Engineering Corporation

cherry.wy.tsang@jec.com

Source: Hyliion & JEC

FAQ

What is the purpose of the MOU between Hyliion and Jardine Engineering ?

The MOU aims to explore the potential of Hyliion's KARNO generator technology in power generation projects and collaborate on business opportunities in Hong Kong, Macau, and other markets where JEC operates.

What are the key features of Hyliion's KARNO generator?

The KARNO generator is a fuel-agnostic, linear generator that can operate on various fuels, including hydrogen, natural gas, biogas, and propane. It offers lower maintenance costs and reduced emissions compared to conventional technologies.

How might this partnership impact Hyliion's (HYLN) market presence?

The partnership with JEC could potentially expand Hyliion's (HYLN) market presence in the Asia Pacific region, particularly in the power generation sector, by leveraging JEC's established market knowledge and engineering expertise.

What markets are targeted in the Hyliion (HYLN) and JEC collaboration?

The collaboration primarily targets Hong Kong and Macau, with potential expansion to other markets where Jardine Engineering operates in the Asia Pacific region.