Hyliion Awarded $6 Million Federal Grant to Advance Methane Emission Reductions in the Oil and Gas Industry

Rhea-AI Summary

Hyliion Holdings (NYSE: HYLN) has secured a $6 million grant from the U.S. Department of Energy's Methane Emissions Reduction Program. The project, totaling $8.4 million in combined federal and non-federal funding, will deploy up to 2 megawatts of KARNO™ generators with oil and gas partners. The KARNO generator, successfully tested in the Permian Basin in 2023, can convert well-head gas into sustainable electricity with near-zero emissions.

The generator features a fuel-agnostic design capable of operating on over 20 fuel types, including raw field gas. Its hermetically sealed construction with minimal moving parts enables long-term maintenance-free operation in remote locations. The funding is part of an $850 million federal program aimed at methane emissions reduction in the oil and gas industry.

Positive

• Secured $6 million federal grant with total project funding of $8.4 million
• Successfully demonstrated technology viability with Permian Basin gas tests in 2023
• Technology capable of operating on 20+ fuel types, enabling versatile applications

Negative

• Grant funding contingent upon final negotiations and definitive agreement execution

Insights

Energy Technology Analyst

The $6 million DOE grant marks a important validation for Hyliion's KARNO generator technology in the oil and gas sector. The project's total value of $8.4 million, including non-federal funding, demonstrates substantial financial backing. The KARNO generator's ability to convert wellhead gas into electricity addresses two critical industry challenges: reducing methane emissions and generating power in remote locations.

The technology's fuel-agnostic design, capable of processing over 20 fuel types including unprocessed gas, represents a significant competitive advantage. The successful testing in the Permian Basin validates real-world applicability. The hermetically sealed design with minimal moving parts suggests lower maintenance costs and higher reliability - critical factors for remote deployment.

For investors, this presents a dual revenue opportunity: equipment sales and potential recurring revenue from power generation. The federal backing significantly de-risks the technology commercialization pathway and could accelerate market adoption.

Environmental Policy Expert

This grant is part of a broader $850 million federal initiative targeting methane emissions, positioning Hyliion strategically within a major regulatory push. The focus on methane reduction aligns with increasingly stringent environmental regulations and ESG requirements in the oil and gas sector. Converting flare gas to power addresses a significant environmental challenge - the EPA estimates that flaring wastes 149 billion cubic feet of gas annually.

The technology's ability to operate on raw field gas could provide a compelling solution for operators facing pressure to reduce emissions while maintaining profitability. This dual benefit of emissions reduction and power generation could accelerate adoption as companies seek to meet environmental mandates while improving operational efficiency.

AUSTIN, Texas--(BUSINESS WIRE)-- Hyliion Holdings Corp. (NYSE American: HYLN), a developer of sustainable electricity-producing technology, today announced it has been awarded a $6 million grant from the U.S. Department of Energy’s (DOE) Methane Emissions Reduction Program. For this project, representing a total of $8.4 million in federal and non-federal funding, Hyliion will install up to 2 megawatts of KARNO™ generators in collaboration with oil and gas partners.

The project will demonstrate the KARNO generator’s unique ability to operate on well-head gas to produce sustainable, near-zero emissions electricity. In 2023, Hyliion successfully tested gas from the Permian Basin, highlighting the generator’s fuel-agnostic design and its capability to utilize unprocessed gas. This distinctive capability positions the KARNO generator as a groundbreaking solution for reducing flaring and methane emissions while delivering efficient, scalable power.

“The KARNO generator is redefining what’s possible in sustainable energy production by turning waste gas that would normally be flared into valuable power,” said Thomas Healy, Founder and CEO of Hyliion. “This funding opportunity allows us to demonstrate the potential of our innovative technology in providing meaningful solutions to combat methane emissions in the oil and gas industry.”

The KARNO generator is an innovative linear generation system powered by heat and enabled by 3D metal printing. Its hermetically sealed design, with only one moving part per shaft, allows for long maintenance-free operation, making it ideal for remote and demanding environments like oil fields. Additionally, its flexibility to operate on more than 20 fuel types, including raw field gas, ensures it can adapt to diverse energy needs while reducing environmental impact.

The funding is part of the U.S. DOE and U.S. Environmental Protection Agency’s $850 million Methane Emissions Reduction Program to back projects targeting advancement in monitoring, measuring, and mitigation of methane emissions across the oil and gas industry. This grant empowers Hyliion to deploy KARNO generators in the oil and gas industry, advancing sustainable energy generation, as well as economic growth and job creation in local communities.

The funding awarded to Hyliion is contingent upon the completion of final negotiations and the execution of a definitive agreement with the U.S. DOE.

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, and 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. For further information, please visit www.hyliion.com.

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 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.

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Hyliion Holdings Corp. 

press@hyliion.com 

Investor Relations 

ir@hyliion.com

Source: Hyliion Holdings Corp.

FAQ

What is the value of the DOE grant awarded to Hyliion (HYLN)?

Hyliion (HYLN) was awarded a $6 million grant from the U.S. Department of Energy's Methane Emissions Reduction Program, with the total project value reaching $8.4 million including non-federal funding.

How many megawatts of KARNO generators will Hyliion (HYLN) install with the grant?

Hyliion plans to install up to 2 megawatts of KARNO generators in collaboration with oil and gas partners.

When did Hyliion (HYLN) successfully test the KARNO generator in the Permian Basin?

Hyliion successfully tested gas from the Permian Basin in 2023, demonstrating the generator's ability to utilize unprocessed gas.

How many fuel types can the Hyliion (HYLN) KARNO generator operate on?

The KARNO generator can operate on more than 20 different fuel types, including raw field gas, demonstrating its fuel-agnostic capabilities.

What is the total value of the DOE Methane Emissions Reduction Program that Hyliion (HYLN) is part of?

The grant is part of an $850 million Methane Emissions Reduction Program by the U.S. DOE and EPA targeting methane emissions in the oil and gas industry.