Hyliion Executes a Letter of Intent to Provide KARNO™ Generators to GTL Leasing
- None.
- None.
Insights
The strategic partnership between Hyliion Holdings Corp. and GTL Leasing LLC marks a significant development in the energy and electric vehicle (EV) infrastructure sectors. The deployment of KARNO generators as a mobile EV charging solution addresses a critical bottleneck in EV adoption: the availability of charging infrastructure. The potential for these generators to run on both hydrogen and natural gas aligns with the broader industry trend towards diversifying energy sources and enhancing fuel flexibility, which could lead to increased market penetration and customer adoption.
From an investment perspective, this initiative could be a growth catalyst for Hyliion, especially considering the National Renewable Energy Laboratory's projection of the need for 182,000 new fast-charging ports by 2030. The scalability of GTL's commitment post the initial deployment could signify a substantial revenue stream for Hyliion, contingent upon the successful integration and performance of the KARNO generators.
However, the non-binding nature of the current agreement introduces an element of uncertainty. Investors should monitor the progression towards a binding purchase agreement and the subsequent performance of the early adoption program for a clearer assessment of the long-term financial impact.
The introduction of the KARNO generators by Hyliion, with the capability to utilize both hydrogen and natural gas, is a significant step towards more sustainable energy solutions in the EV space. The flexibility in fuel choice provides a competitive edge, potentially reducing reliance on fossil fuels and aligning with environmental initiatives. The ability of these generators to serve as an interim solution for EV charging infrastructure challenges could accelerate the transition to electric fleets, particularly in California where regulatory pressures for cleaner energy are strong.
While the collaboration with GTL is poised to demonstrate the practicality of KARNO technology, the long-term benefits hinge on the technology's reliability, cost-effectiveness and environmental impact compared to traditional grid-connected charging stations. Stakeholders should consider the implications of adopting such technologies on operational costs, the total cost of ownership for EV fleets and the potential for carbon footprint reduction.
It's important to note that the success of this early adoption program will likely influence the perception of mobile EV charging solutions in the market, potentially setting a precedent for other companies to follow.
The deployment of KARNO generators by Hyliion in collaboration with GTL could have a significant environmental impact by facilitating the growth of the EV market. The ability to provide a mobile EV charging solution helps to overcome one of the key barriers to EV adoption, which is the lack of adequate charging infrastructure. This is particularly relevant in California, a state with aggressive emissions reduction targets and a rapidly growing EV market.
The environmental impact of the KARNO generators will largely depend on the source of the hydrogen or natural gas used to power them. If the hydrogen is produced using renewable energy, or if the natural gas is sourced responsibly, the overall carbon footprint of the charging process could be substantially lower than that of traditional fossil fuel-powered vehicles. However, if the hydrogen is produced from fossil fuels, or if methane leakage occurs in the natural gas supply chain, the environmental benefits may be less pronounced.
Investors and environmental stakeholders should pay close attention to the life cycle analysis of the KARNO generators to fully understand their environmental benefits and to ensure that the deployment aligns with sustainability goals.
GTL will be a part of Hyliion’s early adoption program of the KARNO generators with an initial commitment of two generators. Deliveries for the program will begin in late 2024. Upon successful deployment, GTL intends to scale adoption of KARNO units as they expand their portable EV charging business.
“Customers are eager to adopt EVs, but often struggle to deploy initial charging infrastructure on a schedule that matches their vehicle adoption plans,” said Michael Koonce, CEO of GTL. “In California and many other states, fleets often face multi-year delays to secure a connection to the utility grid. We are, essentially, the starter kit or interim solution for customers’ EV power needs.”
As a full solution provider, GTL will be offering a complete package which includes a KARNO generator, battery buffer, EV chargers, and maintenance services on a lease basis. These generators are expected to be capable of operating on both hydrogen and natural gas, enabling customers to choose which fuel best fits their economic and environmental initiatives.
National Renewable Energy Laboratory (NREL) anticipates that 182,000 new fast-charging ports will need to be deployed across the US by 2030 to match the growing adoption of EVs. Each KARNO generator is expected to produce enough electricity to supply approximately two fast-charging ports.
"The strategic collaboration with GTL marks a significant milestone in the commercialization of the KARNO generator, as it will provide a valuable use case of easily deployable EV charging coupled with power generation," stated Thomas Healy, Founder and CEO of Hyliion. "This partnership highlights our commitment to advancing sustainable electricity production and showcasing the capabilities of the KARNO generator in an ever-growing market."
The sale of these early KARNO generators is subject to the execution of a binding purchase agreement between the parties. For more detailed information about Hyliion and the KARNO generator, please visit www.hyliion.com.
About GTL Leasing LLC
GTL Leasing was established in 2013 and has grown exponentially over the last ten years to become the largest lessor of composite cylinder-based gas transports. Though hydrogen transports represent the majority of GTL’s fleet, GTL leases trailers for breathing air, natural gas, and nitrogen applications. As an operating lease company, GTL can provide its customers with short- and long-term leases in addition to supplying maintenance services with its own in-house service team. GTL has facilities in
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
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, and our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop 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 28, 2023 for the year ended December 31, 2022 and Form 10-Q filed with the SEC on November 8, 2023 for the quarterly period ended September 30, 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 different 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/20231219776042/en/
Hyliion Holdings Corp.
press@hyliion.com
Investor Relations
ir@hyliion.com
Source: Hyliion Holdings Corp.
FAQ
What is the partnership between Hyliion Holdings Corp. and GTL Leasing LLC for?
What is the initial commitment from GTL for the KARNO generators?
What are the expected capabilities of the KARNO generators?
