PowerTap Hydrogen Capital provided an update on the activities of PowerTap and its subsidiary, PowerTap Hydrogen Fueling Further to the company’s press release on November 23, 2022, PowerTap Hydrogen Fueling in conjunction with T2M Global, PowerTap’s technology partner, have further progressed the engineering and supply chain validation of the PowerTap Gen3 modular H₂ production and dispensing unit (MHPDU) in PowerTap’s plan to establish light-duty and heavy-duty fuel cell electric vehicle (FCEV) H₂ refueling stations by 2024.

As part of T2M Global's progress on supply chain and technology validation of PowerTap's Gen3 unit, T2M has made significant advancement towards finalizing a compression partnership that would substantially improve station uptimes over the current unacceptable 40% to 65% uptimes of existing H₂ fuel stations (using H₂ produced offsite) in California. T2M and the compression partner are finalizing the details to provide near 100% uptimes to enhance the H₂ FCEV ownership experience. In addition, T2M has played in critical role in supporting corporate development in which PowerTap has been engaged with potential industry partners including possible station partners, vehicle OEMs, industry consortium partnerships and for government funding, in the U.S. and internationally.

“As incoming CEO of the U.S. subsidiary, I am focused on communicating to the market the importance of PowerTap’s patented onsite blue H₂ production solution from a cost, carbon intensity, technology and reliability standpoint. What differentiates us from the traditional compress-store-dispense (CSD) stations (i.e., the way that most all H₂ fueling stations are set globally - off-site production of H₂, shipping of H₂ in tankers to stations and onsite storage and dispensing) is that, first and foremost, we avoid H₂ transport costs which also significantly decrease carbon intensity (CI) and increase the reliability of H₂ supply which will lead to needed lower prices at the pump for FCEV customers,” said Salim Rahemtulla, CEO of the U.S. subsidiary.

“Secondly, with our renewable natural gas feedstock (low to negative CI biogas or biomethane coming from dairy farms, cow and pig farms, food waste, landfills, etc.), we produce carbon neutral or negative carbon H₂, which is critical to our participation in the state of California’s Low Carbon Fuel Standard (LCFS) program. The U.S. subsidiary's participation in the LCFS program (if it qualifies) will bring us significant revenue for 15 years based on our 1,250-kg H₂ per day capacity, even without sales of H₂ from dispensing. Thirdly, we believe that PowerTap’s Gen3 solution will deliver the lowest cost H₂ available in California. With current retail hydrogen pricing in California ranging up to $27.50 per kg at the pump, from under $20/kg in 2020, prices are too high for H₂ vehicle adoption and puts PowerTap in an excellent position to build market share in the market. PowerTap believes that in addition to being able to produce H₂ at the lowest cost in California, our hydrogen production method is superior to green H₂ (using electrolysis) produced in California using electricity from the electricity grid, due to a lack of a green electricity grid across most of the U.S. and high electricity costs.”