HYZON AND NEW WAY TRUCKS TO DEVELOP HYDROGEN FUEL CELL REFUSE TRUCK

Rhea-AI Summary

Hyzon Motors Inc. and New Way Trucks announced a Joint Development Agreement to develop a fuel cell powered refuse vehicle for the North American market. The companies plan to start advanced phases of truck development with the initial base FCEV prototype ready for refuse collection equipment integration. The development process is expected to leverage Hyzon's real-world experience developing, assembling, and deploying a hydrogen fuel cell refuse truck in operation since October 2023 in Australia with REMONDIS Australia. The partnership aims to develop a sustainable refuse collection solution to reduce emissions from hard-to-abate industries, including refuse collection.

Insights

Market Research Analyst

The announcement of a Joint Development Agreement (JDA) between Hyzon Motors Inc. and New Way Trucks signifies a strategic move into the North American refuse market for hydrogen fuel cell technology. This collaboration aims to integrate Hyzon's fuel cell technology with New Way's refuse collection equipment, potentially disrupting the traditional diesel-powered refuse vehicle market. The focus on sustainability and decarbonization aligns with broader environmental trends and regulatory pressures that are increasingly influencing business operations and consumer preferences.

From a market perspective, the successful deployment of these vehicles could lead to increased demand for hydrogen fuel infrastructure and services, as well as ancillary industries such as maintenance and training. The partnership could also set a precedent for similar collaborations in other heavy industries looking to reduce emissions. However, the adoption rate will be critical to monitor, as it will influence the scale of impact on the market. Challenges such as the cost of technology, infrastructure readiness and the total cost of ownership compared to traditional vehicles will be key factors in determining the rate of adoption.

Environmental Policy Expert

The collaboration between Hyzon Motors and New Way Trucks to develop a fuel cell powered refuse vehicle underscores the increasing importance of environmental policy in shaping the commercial vehicle sector. The move towards zero-emission technologies in refuse collection is indicative of a larger trend where businesses are proactively aligning with climate goals and environmental regulations. The successful implementation of such technology could encourage policymakers to introduce more stringent emissions standards and incentives for clean energy vehicles, further accelerating the transition away from fossil fuels.

However, the long-term environmental impact of this transition hinges on the broader hydrogen production ecosystem. If hydrogen is produced using renewable energy sources, the environmental benefits are maximized. Conversely, if hydrogen is sourced from fossil fuels, the net reduction in emissions may be less significant. Therefore, the environmental policy landscape will play a crucial role in supporting the development of green hydrogen infrastructure to ensure the full potential of this technology is realized.

Financial Analyst

The financial implications of Hyzon's partnership with New Way Trucks are multifaceted. On one hand, the development of fuel cell electric vehicles (FCEVs) for refuse collection represents a potential growth area for Hyzon, leveraging their expertise in hydrogen fuel cell technology. The investment in R&D and the subsequent production of these vehicles could lead to new revenue streams and diversification of their product portfolio. This move may be viewed favorably by investors seeking exposure to innovative and environmentally conscious companies.

On the other hand, the capital expenditure required for the development and subsequent scaling of production could weigh on Hyzon's short-term financial performance. Investors will need to consider the balance between the costs associated with this venture and the potential for long-term returns. The success of the trials and the acceptance of the technology by refuse collection companies will be critical in determining the future financial impact. Furthermore, the stock market reaction will likely hinge on the perceived viability of the technology, the company's ability to execute on its plans and the competitive landscape of the refuse vehicle market.

Joint Development Agreement to Bring Fuel Cell Electric Trucks to the North American Refuse Market; Scheduling in Progress for Trials in First Half of 2024

BOLINGBROOK, Ill., Feb. 6, 2024 /PRNewswire/ -- Hyzon Motors Inc. (Hyzon) (NASDAQ: HYZN), a leading hydrogen fuel cell technology developer and global supplier of zero-emission heavy-duty fuel cell electric vehicles (FCEVs), and privately held New Way Trucks (New Way), today announced a Joint Development Agreement (JDA) to develop a fuel cell powered refuse vehicle for the North American market.

"Zero emission hydrogen fuel cell technology is the key to reducing emissions from many hard-to-abate industries, including refuse collection," said Hyzon Chief Executive Officer Parker Meeks. "Hyzon is primed to begin this partnership with New Way as we pursue a shared goal of decarbonizing the refuse industry. The operational capabilities of our Australian fuel cell refuse collection truck trial helped demonstrate that hydrogen fuel cell technology is a viable replacement for traditional diesel engines when it comes to heavy industry, and overcomes some of the inherent challenges identified with other zero emission technologies such as range anxiety, severe operating temperatures, and payload limitations."

Hyzon and New Way plan to start the advanced phases of truck development, with the initial base FCEV prototype ready for refuse collection equipment integration. Hyzon will be responsible for the supply and integration of its advanced fuel cell technology and integrated powertrain, while New Way will be responsible for the supply and integration of the prototype's Sidewinder XTR automated side-load refuse body, thereby combining both companies' expertise to develop a sustainable refuse collection solution. The development process is expected to leverage Hyzon's real-world experience developing, assembling and deploying a hydrogen fuel cell refuse truck in operation since October 2023 in Australia with REMONDIS Australia, the Australian operation of one of the world's largest recycling, service and water companies.

"New Way has a successful history of deploying alternative powertrain refuse equipment across North America," said Don Ross, New Way's Chief Sales Officer. "Partnering with Hyzon to bring the continent's first Class 8 FCEV refuse collection vehicle to life is a significant step in helping our customers meet their sustainability and decarbonization objectives."

Across North America, Hyzon estimates that about 120,000 refuse trucks are currently operational, consuming a total of over 953 million gallons of diesel fuel annually. The integration of FCEVs into refuse collection fleets in North America provides an opportunity to help decarbonize the industry and reduce noise pollution from diesel trucks. Moreover, Hyzon expects fuel cell powered refuse trucks to deliver performance levels on par with both diesel and natural gas trucks.

"Partnering with New Way is an important step for us," said Hyzon Vice President of Commercial Steve Boyer. According to Boyer, Hyzon's advanced fuel cell technology is expected to enhance the operational performance of refuse trucks and have a positive impact on the environment. Hyzon President Pat Griffin added, "It's about providing solutions that align with our customers' operational needs and sustainability goals. Working with a partner like New Way is invaluable. Our joint development efforts have the potential to set a new standard for the refuse industry."

Initial customer trials for the parties' first North American prototype truck are planned to begin in the first half of 2024 with a mix of public and private refuse fleets. Additionally, Hyzon is targeting initial commercial vehicle deliveries in 2025 on the back of potential successful trials. Upon trial deployment, the trucks are expected to achieve up to a 125 mile driving range, 1,200 refuse cart lifts per route, an unladen weight significantly lighter than an equivalent battery electric truck, and a refueling time of 15 minutes based on performance observed to date in the REMONDIS trial. The Hyzon refuse trucks deliver competitive daily operational performance when compared to combustion engines.

"We look forward to learning how the Hyzon/New Way unit performs on route," shared Eric Evans, New Way's Chief Product Officer. "New Way distributors and key customers are excited about the prospect of alternative powertrain options that leverage the learnings of BEV without performance compromises while aligning with emerging hydrogen technology and infrastructure investment."

Through trials, Hyzon's goal is to demonstrate to customers and the industry that fuel cell-powered refuse vehicles can be the primary choice for any refuse management company interested in minimizing its carbon footprint and modernizing its fleets.

About Hyzon
Hyzon Motors is a global supplier of high-power fuel cell technology focused on integrating its solutions into zero-emission heavy-duty fuel cell electric vehicles. Utilizing its proven and proprietary hydrogen fuel cell technology, Hyzon aims to supply zero-emission heavy duty trucks to customers in North America, Europe, Australia, and New Zealand to mitigate emissions from diesel transportation - one of the single largest sources of global carbon emissions. Hyzon collaborates with partners across the hydrogen value chain to bring clean hydrogen to the market to support fuel cell vehicle deployments. Hyzon is contributing to the adoption of fuel cell electric vehicles through its demonstrated technology advantage, fuel cell performance and history of rapid innovation. Visit www.hyzonmotors.com.

About New Way Trucks
New Way Trucks is the largest privately held refuse equipment manufacturer in North America. With the broadest lineup of all U.S. manufacturers, New Way's product line features six rear-load, three automated side-load (including the industry-leading Sidewinder XTR, auger driven ROTO PAC, and under CDL capable Wolverine), and two front-load models ranging in size from six to 43 cubic yards. New Way Trucks is proud to have played a key role in developing the most advanced mobile refuse equipment in the world: equipment that drives positive, sustainable change for not only its customers and the environment, but for the broader public it serves.

Forward-Looking Statements
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, are forward-looking statements. When used in this press release, the words "aims", "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, including the possibility of adoption of fuel cell electric vehicles by the refuse industry, 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, Hyzon disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Hyzon 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 Hyzon, including risks and uncertainties described in the "Risk Factors" sections of Hyzon's Form 10-K for the year ended December 31, 2022 filed with the U.S. Securities and Exchange Commission (SEC) on May 31, 2023, Form 10-Q for the quarter ended September 30, 2023 filed on November 14, 2023, and in other documents filed by Hyzon from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Hyzon gives no assurance that Hyzon will achieve its expectations.

 

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SOURCE Hyzon Motors Inc.

FAQ

What is the Joint Development Agreement between Hyzon Motors Inc. and New Way Trucks about?

The Joint Development Agreement aims to develop a fuel cell powered refuse vehicle for the North American market.

What is Hyzon's role in the agreement?

Hyzon will be responsible for the supply and integration of its advanced fuel cell technology and integrated powertrain.

What is New Way's role in the agreement?

New Way will be responsible for the supply and integration of the prototype's Sidewinder XTR automated side-load refuse body.

When is the scheduling for trials expected to take place?

The scheduling for trials is in progress for the first half of 2024.

What is the aim of the partnership between Hyzon and New Way?

The partnership aims to develop a sustainable refuse collection solution to reduce emissions from hard-to-abate industries, including refuse collection.