Loop Energy Awarded $9.75 Million in Funding From Government of Canada to Scale Production Capabilities
May 02 2022 - 3:09PM
Business Wire
Loop Energy™ (TSX: LPEN) announces it has been awarded $9.75
million CAD over three years from the Government of Canada through
Pacific Economic Development Canada’s (PacifiCan) Jobs and Growth
Fund. Loop Energy will invest the funding into increasing the
manufacturing capacities of its hydrogen fuel cell stacks and
modules at its Burnaby, Canada, manufacturing facility.
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Loop Energy Awarded $9.75 Million in
Funding from Government of Canada to Scale Production Capabilities
(Photo: Business Wire)
The Jobs and Growth Fund helps businesses and organizations
transition to a green economy and create jobs, and position local
economies for long-term growth. In British Columbia, the Jobs and
Growth Fund is delivered by Pacific Economic Development Canada, a
regional development agency focused on British Columbia's evolving
economy. After being chosen for its contribution to the clean
technology sector, Loop Energy will begin receiving funding in 2022
through 2025 as an interest-free loan. Loop Energy is required to
start repaying the loan commencing 2025.
Demand for Loop Energy’s hydrogen fuel cell technology continues
to grow as countries roll out various initiatives and regulations
aimed at advancing the adoption of green energy solutions within
the transportation and stationary power sectors. To grow its
production volumes, Loop Energy aims to increase its fuel cell
stack and module production by integrating testing equipment,
adding an additional production line and identifying opportunities
for vertical integration to secure its supply chain.
“The Jobs and Growth Fund investment will help Loop Energy scale
our production capacities over the coming years,” said Loop Energy
Chief Financial Officer, Damian Towns. “Loop Energy appreciates the
Government of Canada’s contribution and sees this as an indicator
of the commitment to transition to clean technologies, including
hydrogen, to support the global clean energy transition.”
“PacifiCan is a dedicated regional economic development agency
for British Columbia, there to support local companies, such as
Loop Energy, who are helping drive the adoption of zero-emissions
vehicles in Canada and around the world,” said the Honourable
Harjit S. Sajjan, Minister of International Development and
Minister responsible for the Pacific Economic Development Agency of
Canada. “Investments in companies like Loop Energy show that B.C.
is building a new green climate industry, while creating
well-paying middle class jobs in our communities. I look forward to
seeing Loop Energy scale up to meet the rising global demand for
hydrogen fuel cell technology, and build a cleaner and greener
future for all.”
About The Jobs and Growth Fund The Jobs and Growth Fund
helps job creators and the organizations that support them to
future-proof their businesses, build resiliency and prepare for
growth by transitioning to a green economy, while enhancing
competitiveness and creating jobs in every corner of the country.
The Fund, delivered by Canada’s regional development agencies,
provides $700 million nationally over 3 years, which includes up to
$70 million dedicated to businesses created after January 2020 that
meet eligibility criteria.
About Loop Energy Inc. Loop Energy is a leading designer
and manufacturer of fuel cell systems targeted for the
electrification of commercial vehicles, including light commercial
vehicles, transit buses and medium and heavy-duty trucks. Loop’s
products feature the company’s proprietary eFlow™ technology in the
fuel cell stack’s bipolar plates. eFlow™ is designed to enable
commercial customers to achieve performance maximization and cost
minimization. Loop works with OEMs and major vehicle sub-system
suppliers to enable the production of hydrogen fuel cell electric
vehicles. For more information about how Loop is driving towards a
zero-emissions future, visit www.loopenergy.com.
Forward-Looking Information This press release contains
forward-looking information within the meaning of applicable
securities legislation, which reflect management's current
expectations and projections regarding future events. Particularly,
statements regarding the Company's expectations of future results,
performance, achievements, prospects or opportunities or the
markets in which we operate is forward-looking information, our
future growth prospects and business outlook including without
limitation the expected demand for our products, the planned growth
of our customer base and the expected growth of our operations
globally; our expected future manufacturing capacity and production
capability as well as the integration of testing equipment, the
addition of production lines and identification of opportunities
for vertical integration to secure our supply chain; the future
receipt of loan funding from Pacific Economic Development Canada;
our ability to repay the loans in the future; and the Government of
Canada’s commitment to transition to clean technologies, including
hydrogen, to support the global clean energy transition.
Forward-looking information is based on a number of assumptions
(including without limitation assumptions with respect the current
and future performance of the Company's products, growth in demand
for the Company's products, the Company’s ability to execute on its
strategy, achieve its targets and progress existing and future
customers through the Customer Adoption Cycle in a timely way, the
impact of COVID-19 on our operations, the availability and receipt
of the loan funds from Pacific Economic Development Canada in the
future and the Government of Canada’s continued support of a
transition to clean technologies) and is subject to a number of
risks and uncertainties, many of which are beyond the Company's
control and could cause actual results and events to vary
materially from those that are disclosed, or implied, by such
forward-looking information. Such risks and uncertainties include,
but are not limited to, the receipt of the loan funds from Pacific
Economic Development Canada in the future, the realization of
electrification of transportation, the elimination of diesel fuel
and ongoing government support of such developments, the expected
growth in demand for fuel cells for the commercial transportation
market, our ability to obtain future patent grants for our
proprietary technology and the effectiveness of current and future
patents in protecting our technology and the factors discussed
under "Risk Factors" in the Company's Annual Information Form dated
March 23, 2022. Loop disclaims any obligation to update these
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220502005812/en/
Investor Inquiries: Bill Zhang | +1 604.222.3400 Ext. 299
| bill.zhang@loopenergy.com Laine Yonker | +1 646.653.7035 |
lyonker@edisongroup.com
Media Inquiries: Ethan Hugh | +1.604.222.3400 Ext. 304 |
ethan.hugh@loopenergy.com Lucas Schmidt | +1.604.222.3400 Ext. 603
| lucas.schmidt@loopenergy.com
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