Hyliion Signs Letter of Intent with Al Khorayef to Deploy KARNO Generators for Agricultural Applications in Saudi Arabia

Rhea-AI Summary

Hyliion Holdings Corp. (NYSE: HYLN) has signed a non-binding Letter of Intent (LOI) with Al Khorayef Group to deliver up to twelve 200 kW KARNO™ generator units in Saudi Arabia. The generators will be deployed for agricultural and power generation applications, supporting Saudi Arabia's Vision 2030 sustainability goals.

The KARNO generators will initially operate on LPG and natural gas, with future fuel flexibility. These units are designed to provide efficient, low-emission power for farms, irrigation systems, and agricultural machinery in remote locations with unreliable or unavailable grid power. Key features include high efficiency, minimal maintenance requirements, and quiet operation.

Al Khorayef Group, operating in over 40 countries through its Gulf Power brand, brings 50 years of experience in power generation and industrial solutions. The LOI is subject to executing a binding purchase agreement.

Positive

• Potential sale of twelve 200 kW KARNO generators in Saudi Arabia
• Entry into Middle Eastern market through established regional player
• Alignment with Saudi Arabia's Vision 2030 sustainability goals
• Product flexibility to operate with multiple fuel types

Negative

• Non-binding nature of the LOI without firm commitment
• Deployment timeline and financial terms not specified

Insights

Energy Technology Analyst

This strategic LOI marks Hyliion's first major international commercial opportunity for its KARNO generator technology, targeting Saudi Arabia's $2.1 billion agricultural power generation market. The potential deployment of up to twelve 200 kW units represents approximately 2.4 MW of total capacity, which could serve as a important reference project for broader Middle Eastern expansion.

The KARNO generator's technical advantages are particularly compelling for agricultural applications:

• Multi-fuel capability allows flexibility between LPG and natural gas, reducing fuel supply chain risks
• High efficiency and low maintenance requirements address key operational challenges in remote locations
• Quiet operation and low emissions align with Saudi Arabia's environmental regulations

Al Khorayef's established presence in 40+ countries and deep expertise in power generation through Gulf Power provides Hyliion with a credible pathway to market penetration. However, investors should note several critical factors:

• The non-binding nature of the LOI means execution risks remain significant
• Revenue impact will depend on final pricing and timeline negotiations
• Success in this deployment could unlock opportunities across the broader GCC region, where similar agricultural power challenges exist

While this partnership represents a positive step in Hyliion's commercialization strategy, the company faces competition from established diesel generator manufacturers and emerging renewable solutions. The success of this initiative will be important for validating KARNO's real-world performance and establishing Hyliion's credibility in international markets.

AUSTIN, Texas--(BUSINESS WIRE)-- Hyliion Holdings Corp. (NYSE American: HYLN) (“Hyliion”), a developer of sustainable electricity-producing technology, today announced it has signed a non-binding Letter of Intent (LOI) with Al Khorayef Group, a leader in power generation with diverse expertise in industrial machinery, agriculture, and irrigation solutions. Headquartered in Saudi Arabia and operating in more than 40 countries, Al Khorayef is a key player in the power generation industry in the Middle East, with its Gulf Power brand at the forefront.

The LOI outlines plans for Hyliion to deliver up to twelve 200 kW KARNO™ generator units to Saudi Arabia for deployment in agricultural and other power generation applications. Through this collaboration, both companies aim to explore the broader potential of KARNO generators in the regional power generation market, aligning with Saudi Arabia’s Vision 2030 sustainability goals to reduce pollutants and enhance food security.

The KARNO generators are expected to initially operate on liquefied petroleum gas (LPG) and natural gas, with flexibility for other fuels in the future. This adaptability, combined with the KARNO generator’s high efficiency, low emissions footprint, minimal maintenance, and quiet operation, makes it ideal for powering farms, irrigation systems, and agricultural machinery in remote locations where grid power is often unavailable or unreliable.

“The agricultural sector requires innovative energy solutions that not only meet its unique operational demands but also support sustainability and growth,” said Mr. Mohamed bin Alkhorayef, CEO of Al Khorayef Group. “Partnering with Hyliion to bring the first KARNO generators to Saudi Arabia exemplifies our mission to transform essential resources like energy into tools for progress and prosperity.”

Al Khorayef Group has a 50-year legacy of pioneering innovative technologies across industries. With Gulf Power leading its efforts in power generation, Al Khorayef is committed to advancing sustainability and fostering economic growth in Saudi Arabia and beyond.

“Meeting the energy demands of agriculture in remote and challenging locations requires innovative and efficient solutions,” said Thomas Healy, Founder and CEO of Hyliion. “We look forward to working with Al Khorayef to deliver sustainable, reliable power to support food security and economic growth with adaptable and efficient energy technologies.”

The LOI between Hyliion and Al Khorayef is subject to the execution of a binding purchase agreement. For more information about Hyliion and its innovative electrification solutions, please visit www.hyliion.com.

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.

About Al Khorayef Group

Al Khorayef Group, established in 1957 and headquartered in Saudi Arabia, delivers innovative solutions across agriculture, machinery systems, and energy, with operations in over 40 countries. The Group’s Gulf Power brand, a leading manufacturer of electrical generators, offers ISO and SASO-certified solutions, comprehensive engineering services, and exceptional after-sales support. With a strong focus on quality and innovation, Gulf Power serves diverse market sectors, ensuring reliable energy solutions tailored to specific needs. Al Khorayef and Gulf Power remain committed to Vision 2030, providing reliable and sustainable energy solutions to foster progress and create a better future.

For further information, please visit www.alkhorayef.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 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/20250211166798/en/

Hyliion Holdings Corp.

press@hyliion.com

Investor Relations

ir@hyliion.com

Source: Hyliion Holdings Corp.

FAQ

How many KARNO generators will Hyliion (HYLN) deliver to Saudi Arabia?

According to the LOI, Hyliion plans to deliver up to twelve 200 kW KARNO generator units to Saudi Arabia.

What fuel types will Hyliion's KARNO generators use in Saudi Arabia?

The KARNO generators will initially operate on liquefied petroleum gas (LPG) and natural gas, with flexibility for other fuels in the future.

What is the purpose of Hyliion's KARNO generators in Saudi Arabia?

The KARNO generators will be used for agricultural applications, powering farms, irrigation systems, and agricultural machinery in remote locations where grid power is unreliable or unavailable.

Is Hyliion's agreement with Al Khorayef Group binding?

No, it is currently a non-binding Letter of Intent (LOI) that is subject to the execution of a binding purchase agreement.

How does the HYLN-Al Khorayef deal align with Saudi Arabia's goals?

The partnership aligns with Saudi Arabia's Vision 2030 sustainability goals to reduce pollutants and enhance food security.