Hydra secures its first partnership with a chemical company
to unlock a new revenue stream for hydrogen
VANCOUVER, BC, Feb. 23, 2021 /CNW/ -- Continuing to
speed up the adoption of hydrogen in long-haul transportation,
Hydra Energy today announced a first-of-its-kind strategic
partnership with Chemtrade (TSX:CHE.UN). The long-term contract is
a pillar of Hydra's Hydrogen-as-a-Service (HaaS) business model and
includes Hydra capturing, cleaning, and compressing hydrogen.
Initially, both companies are focused on one of Chemtrade's plants
in British Columbia with the
potential to expand across the country. Commercial truck fleet
operators with Hydra-converted semi-trucks can access green
hydrogen at a fixed price, five percent below the price they
typically pay for diesel. Multi-year pilots demonstrated an ability
to reduce greenhouse gas (GHG) emissions up to 40 percent, using
hydrogen-injection technology and fuel source without impacting
truck performance or range. Natural gas distributors can also use
the green hydrogen to meet renewable content requirements.
Hydra's ability to deploy stranded hydrogen assets to fleet
operators, who can use it to reduce their fuel costs and meet
emission targets, opens up new opportunities for chemical
manufacturers. The company's distinctive HaaS model helps
commercial fleets reduce costs and emissions with limited risk and
no up-front investment. The company installs hydrogen-diesel
co-combustion conversion kits into existing semi-trucks and
provides the fueling infrastructure for the green hydrogen sourced
from chemical producers like Chemtrade at no cost to fleet
owners.
California's Low-Carbon Fuel
Standard fuel pathways report notes diesel fuel possesses a
carbon intensity of 74.86g per megajoule of energy (g
CO2/MJ). While still in the process of being defined
internationally, a spectrum of colors are typically used to define
the carbon intensity of hydrogen, from grey on the higher side and
green on the lower end of the spectrum. In Hydra's case, the
company applies a circular economy approach using hydrogen gas
already vented as a by-product of manufacturing to fuel fleets. In
some plant implementations, like its initial Chemtrade project,
Hydra can also leverage hydropower to power its compressors, making
it possible to achieve under 10.53g per megajoule - fitting within
the range of both low-carbon and green hydrogen. This achievement
was verified through a full greenhouse life cycle analysis
completed by Don O'Connor, CEO of
S&T Squared Consultants Inc, the expert behind the greenhouse
gas analysis used in British
Columbia's Low Carbon Fuel Standard (BC-LCFS)
program.
"Hydra enables a rapid and affordable transition to cleaner
trucking by turning one's waste into another's valuable resource.
According to a report by Navius Research, Hydra's model can be
expanded to power tens of thousands of trucks and reduce emissions
up to six megatons per year in Canada alone," said Jessica Verhagen, COO of Hydra Energy. "That
compares to the same amount of greenhouse gas reductions that the
Canadian government forecasts for electric vehicle adoption by
2030."
Global transportation is currently responsible for 16 percent of
GHG emissions, with a significant portion from road transport. In
Canada, 10.5 percent of these
emissions come from freight transportation. In the U.S, this number
increases to 23 percent stemming from medium- and heavy-duty
trucks.
"Beyond the environmental impact, we've learned from trucking
operators that they typically only achieve two to five percent
operating margins with fuel costs coming in at half of a fleet's
operating expenses," highlights David
Batstone, Hydra Energy board member and managing director of
Just Business, an impact fund out of Silicon Valley. "This
represents an opportunity for a more economical approach made
possible by a strategic partnership like the one we've just
announced with Chemtrade. We offer the most cost-effective approach
for chemical manufacturers to turn an often wasted asset into
something of value while delivering hydrogen at below-diesel rates
for those commercial truck fleets ready to go green now."
The flagship Hydra-Chemtrade commercial project will break
ground this year, with gas expected to be flowing in 2022.
To learn more, please contact www.hydraenergy.com.
About Hydra Energy
Hydra Energy is the world's first
Hydrogen-as-a-Service (HaaS™) provider for commercial
fleets looking to reduce costs and emissions today with
limited risk and no up-front investment. The company's innovative
approach sources green hydrogen from leading chemical partners and
provides clean fuel to fleets at below-diesel prices, enabling a
rapid and economic transition to cleaner trucking. In exchange for
long-term, discounted fuel contracts, Hydra quickly converts
semi-truck fleets to a proprietary hydrogen injection system
helping operators optimize truck performance, fuel efficiency, and
emissions reduction regardless of payload and weather.
Hydra and its partners deliver real hydrogen now and are
committed to making the world run greener when it comes to goods'
transportation. For more information, please visit
www.hydraenergy.com, and follow the company on LinkedIn.
Media Contact for Hydra
Lisa
Ann Pinkerton
Technica Communications
hydraenergy@technicacommunications.com
SOURCE Hydra Energy Corporation
