New United States Inflation Reduction Act provides incentives for PowerTap to expand in USA outside of California
PowerTap Hydrogen Capital Corp. (OTC: MOTNF) announces an expansion opportunity following the US Inflation Reduction Act (IRA) of 2022, which allocates $369 billion for energy and climate programs. This act offers federal tax credits up to $3 per kilogram for hydrogen producers, incentivizing investment in clean hydrogen projects. PowerTap aims to leverage these tax credits to develop its hydrogen infrastructure beyond California, focusing on blue hydrogen as a cost-effective solution for the US market amidst a growing demand for hydrogen fueling stations.
- IRA provides up to $3 per kg tax credits for clean hydrogen production, enabling financial support for PowerTap projects.
- Federal incentives allow expansion beyond California, fostering broader market opportunities.
- Focus on blue hydrogen aligns with market needs and cost advantages, supporting long-haul transportation.
- The requirement for lifecycle emissions verification may complicate project financing and implementation.
- The reliance on natural gas could lead to regulatory risks associated with fossil fuel dependence.
VANCOUVER, British Columbia and IRVINE, Calif., Aug. 17, 2022 (GLOBE NEWSWIRE) -- PowerTap Hydrogen Capital Corp. (NEO: MOVE) (FWB: 2K6) (OTC: MOTNF) (“PowerTap” or the “Company” or “MOVE”) is pleased to provide an update on the US Inflation Reduction of Act (IRA) of 2022 recently signed by President Biden, which allows PowerTap to expand outside of California since the incentives are now also at federal level.
The Inflation Reduction Act (IRA) of 2022 will result in an investment of
According to detailed analysis provided by Recharge, the world’s leading business intelligence source for the renewable energy industries (link here), the
With PowerTap’s focus on the use of a blend of renewable natural gas (RNG) and natural gas to ensure a zero to negative carbon intensity for its PowerTap Gen3 modular hydrogen production and dispensing unit (MHPDU), PowerTap’s blue hydrogen is the perfect solution for the USA market given the abundance of natural gas and book-and-claim RNG infrastructure as described in its May 2021 press release (link to that press release here). With the passage of the IRA, the future of hydrogen as the green fuel of choice for long-haul heavy-duty transportation and existing fuel cell electric vehicles is all but assured. Given this and the current reality that there are only 100 active hydrogen fueling stations in the USA, thousands of hydrogen fueling stations are needed now and will be needed in the future.
In addition, this hydrogen USA federal tax credit that PowerTap expects to qualify for is on top of the State of California LCFS (Low Carbon Fuel Standard) hydrogen refueling infrastructure and dispensing carbon credits that PowerTap and other hydrogen producers will receive (latest LCFS guidance from the State of California is here).
Raghu Kilambi, CEO of PowerTap noted, “The IRA will allow PowerTap to expand its focus into the rest of the USA (outside of California) due to the needed attractive incentives to build hydrogen infrastructure. We are also pleased that this legislation is awarding federal incentives including tax credits to both green and blue hydrogen producers in the United States. While we believe in green hydrogen (electrolysis) and have several investments in the green hydrogen space, we believe that blue hydrogen is the appropriate solution for the United States for the next decade due to the high cost of electricity that is needed to produce green hydrogen. We agree with Wes Edens’ (Co-Founder, Principal and Co-CEO of Fortress Investment Group, a US
ABOUT POWERTAP HYDROGEN CAPITAL CORP.
PowerTap Hydrogen Capital Corp., through its wholly owned subsidiary, PowerTap Hydrogen Fueling Corp. (“PowerTap”), is focused on installing hydrogen production and dispensing fueling infrastructure in the United States. PowerTap’s patented solution has been developed over 20 years. PowerTap is now commercializing its third-generation blue hydrogen product that will focus on the refueling needs of the automotive and long-haul trucking markets that lack hydrogen fueling infrastructure. There are currently under 100 operational publicly available hydrogen stations in the United States with most of the existing stations purchasing industrial hydrogen from industrial manufacturers and shipping hydrogen to individual stations via tanker trucks.
www.PowerTapcapital.com
www.PowerTapfuels.com
PowerTap Hydrogen common shares are listed on the NEO Exchange. Please visit the company's profile on the NEO Exchange website at https://www.neo.inc/en/live/security-activity/MOVE#!/market-depth
Investor Contact:
Tyler Troup, Circadian Group IR
MOVE@circadian-group.com
PowerTap Contact:
Raghu Kilambi raghu@hydrogenfueling.co
+1 (604) 687-2038
NEITHER THE NEO EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Notice Regarding Forward Looking Information:
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of PowerTap. Some assumptions include, without limitation, the development of hydrogen powered vehicles by vehicle makers, the adoption of hydrogen powered vehicles by the market, legislation and regulations favoring the use of hydrogen as an alternative energy source, the qualification for carbon credits (including the availability of credits, benefits, emission reductions, offsets and allowances, howsoever entitled, attributable to the production, combustion or other use of biogas), the availability of sufficient RNG feedstock the Company’s ability to build out its planned hydrogen fueling station network, and the Company’s ability to raise sufficient funds to fund its business plan. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved. This press release contains forward-looking statements pertaining to, among other things, the timing and outcome of municipality/county hearings to determine the suitability of the Company’s site designs. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the Company and described in the forward-looking information contained in this press release.
Although the Company believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
FAQ
What is the significance of the Inflation Reduction Act for MOTNF?
How does PowerTap plan to utilize the IRA benefits?
What types of hydrogen does PowerTap focus on?