With the hydrogen fueled vehicle era upon us, and gaining momentum, PowerTap Hydrogen Capital Corp. (NEO: MOVE)(FWB: 2K6)(OTC: MOTNF) have positioned themselves as an early player to fill the gap in a sorely undersupplied hydrogen fueling market with PowerTap’s cheaper, cleaner and smaller fueling technology.
- Surging Market: By 2030, the hydrogen economy in the US alone could generate ~$140B in annual revenue, support 700,000 jobs and fuel 18% of cars, 26% of light-duty trucks and 22% of medium- and heavy-duty vehicles.2
- Major Emerging Opportunity: While there are 100,000+ gas stations in the US, there are less than 100 public hydrogen fueling stations.
- Proven Business Builders: Includes CEO that raised $1B+ for private and public companies; auto racing legend Michael Andretti; former GM of Strategy/Business Development, Fuels and Marketing from Shell; and former Toyota executive part of the team that launched Lexus Canada.
- Multiple Revenue Streams: On top of revenue from hydrogen sales, a significant near-term revenue opportunity exists through earning sellable carbon credits for each fueling installation in California and on hydrogen sales.
- Valuable IP: PowerTap Hydrogen Capital (NEO: MOVE)(FWB: 2K6)(OTC: MOTNF) owns highly advanced and one of the most cost effective hydrogen fueling station solutions with 20+ patents and tens of millions of invested capital.
- Proven Technology : PowerTap’s technology was previously sold and installed in private and public stations to fuel vehicles in California, Texas, Virginia, Maryland, Massachusetts and Oregon. These stations are not owned by PowerTap Hydrogen Fueling Corp., but was based on its patent portfolio.
- First Mover Advantage Catalyst: They accelerated their market penetration potential by partnering with the Andretti Group –auto racing legends Mario and Michael Andretti – to install PowerTap fueling stations at Andretti-owned gas stations starting in 2021
- Attractive Funding: Public/private sector green loan programs, if PowerTap qualifies, can fund up to 70%+ of their fueling station construction costs.
“I’m particularly excited about helping the company grow rapidly over the coming years and serving as an advisor for PowerTap.”
– Michael Andretti, Feb. 1, 2021
PowerTap Hydrogen Capital Corp. has partnered with the famed Andretti Group to build America’s largest hydrogen fueling network. Their superior hydrogen fueling technology has been implemented in platforms (not owned by PowerTap) that are already up and running in 6 American states.
A short term pre-hydrogen sales revenue opportunity exists through California’s “Low Carbon Fuel Standard” (LCFS) program, where PowerTap can earn, then sell, credits of up to $5.60/kg per day of hydrogen produced – a 1,200kg capacity hydrogen station can generate in excess of $2 million in revenue (effective for 15 years).
Hydrogen Is Here To Stay
Let’s face it – Not only has the macro conversation shifted from whether or not hydrogen will play a role in worldwide decarbonization, it’s now a matter of how and when hydrogen will play that role.
As hydrogen demand continues to be driven by policy, decarbonization goals, greater renewables integration, and decreasing renewable electricity costs, demand for necessary infrastructure (hydrogen fueling stations) will naturally follow.
And now global cargo shipping organizations are looking to hydrogen as a possible ‘near-term’ solutionfor use in marine applications.
It’s all coming together towards an emerging, seismic opportunity to power it all…
Namely, hydrogen fueling stations that work at regular gas stations, while also being cost effective and easy to use.
PowerTap’s hydrogen fueling platform provides the cleanest, lowest cost hydrogen in 1/5th of the space compared to competing technologies – and they are on their way to building North America’s largest hydrogen fueling network.
Time to start your due diligence.
June 7, 2021: Clean Power Announces Name Change to PowerTap Hydrogen Capital Corp.
May 25, 2021: PowerTap Provides Update on Implementing Innovative Engineering Solutions to Drive Down the Cost Of 1 Kg of Blue Hydrogen at The Dispenser
May 19, 2021: PowerTap’s Patented Onsite Hydrogen Production System Addresses Hydrogen Supply Chain Risk and Lowers Carbon Intensity of Hydrogen Produced
Smart Investing & Execution
PowerTap has a “clean” genie in a bottle. In one end, you put renewable natural gas, a small amount of electricity and water. Out the other end comes 99.995% pure hydrogen.
It’s an impressive piece of technology:
- Smallest footprint Onsite Blue Hydrogen system –under 1,000 sf
- Operationally tested for over a decade –based on the PowerTap PT50 (Gen2) design
- Designed to meet Underwriter Laboratories (UL) safety standards
- Capacity to produce 1,250 kg of 99.995% pure hydrogen per day
- Feedstock of 40% Renewable Natural Gas (i.e., Biomethane) creating a lower Carbon Intensity (CI) rating
- Designed to operate 4,000 hours without maintenance with 250 cold starts and life cycle of over 40,000hours
- Fuel processor hanging tube design is expandable and designed for ease of maintenance
- Replaces compressed gas storage with 250 Kg liquid storage greatly improving sitesafety
- CO2fire suppression system supplied from captured CO2
In a move to further accelerate their effort to build out America’s largest hydrogen fueling network, PoweTap has teamed up with auto racing legends Andretti Group.
Starting in H2 2021, PowerTap is scheduled to install its hydrogen fueling platform at Andretti-owned gas stations (Andretti has 100+ in the US).
The Andretti Group will also help market PowerTap’s tech to third-party chain retailers, major oil companies and independent stations through the Andrettis’ deep network of auto industry connections.
Big Market Opportunity
When we hear about electric vehicles (EVs), they’re usually battery powered. However hydrogen-powered EVs are gaining momentum with major automakers throwing billions into the sector to gain a foothold. It’s a trend that has been catching on rapidly, creating a significant market opportunity in hydrogen fueling for companies such as PowerTap.
This clean-burning hydrogen-electric technology is expected to enable the trucking industry, in particular, to cut greenhouse-gas emissions (battery-based EVs simply can’t compete on range or refill time).3
That’s why major automakers are developing hydrogen vehicles to capture this new market, from Toyota to Daimler, Volvo, Hyundai4, and GM through their $2B investment in Nikola.5Hyundai also plans to invest $7.4 billion in the US for EVs and hydrogen stations.
That’s driving the hydrogen fuel cell vehicle market’s rapid growth. In 2018, it was valued at $652M USD. Now it’s projected to surpass $42B by 2026 while growing at a staggering CAGR of 66.9%.6 The overall hydrogen generation market is projected to grow to $201 billion by 2025, growing at a CAGR of 9.2%.
While there aren’t millions of hydrogen vehicles on the road (yet), the significant need for fueling stations with hydrogen capability is growing. Fortunately, it’s estimated that a hydrogen station could be profitable with only 10 to 15 trucks fueling up daily.
While PowerTap fueling stations are initially planned for the rapidly growing passenger vehicle market, an opportunity clearly exists to expand into the commercial space projected to have 100,000 if not millions of trucks on the road.
THAT is the lucrative market gap PowerTap is looking to fill by building out a 500+ station network across the US starting this year over a period of 5 years.
Superior Tech + Superior Numbers
Of course, for PowerTap to succeed, consumers and truck fleet owners need to adopt hydrogen vehicles – a movement that’s gaining national traction.
Can I drive as far on a single fill up? Yes. Further, actually. Just look at the long-haul truck fuel comparison below.
Is it affordable compared to traditional fuel? Yes, better in fact.
When it comes to affordability, PowerTap’s technology has VERY competitive hydrogen production costs.
Those competition-beating production costs are the lowest in North America thanks to PowerTap’s onsite model, where the hydrogen is produced right at the filling station. That means they avoid the costs of expensive offsite storage and delivery.
Is it convenient and familiar? Yes, you use a normal-looking pump at a normal gas station.
Is it as fast as a normal fill up? Yes, compared to normal fuels…and when compared to an electric-battery EV charge, it’s 16x faster!
There are a couple more important questions that only investors doing their due diligence on the PowerTap technology will want answered.
Will gas stations have room for it? Yes, PowerTap produces the same amount of hydrogen as competitors but in only 20% the space. That SMALLER footprint is a BIG competitive advantage that enables them to co-locate at existing fueling stations.
Do they have to buy or lease real estate to operate? No, they avoid expensive real estate costs through joint ventures with fueling stations.
Smart Revenue Bridge
On top of revenue from hydrogen sales, PowerTap will earn sellable pre hydrogen sales carbon credits for each fueling installation in California and on hydrogen sales.
PowerTap is set to participate in the California Low Carbon Fuel Standard (“LCFS”) Carbon Credit program, officially making it eligible to earn LCFS credits with each installation of fueling units. These credits can then be sold to oil companies and other gross polluters, who are required to offset their CO2 emissions in California.
Selling carbon credits should be lucrative for PowerTap. Tesla had $1.6B in carbon credit revenue in 2020 alone.7
So far, PowerTap is initially projected to yield $2.95 per kg of hydrogen produced. However, the company has already signaled an even more efficient blue hydrogen generation model that could boost PowerTap’s potential credits to $5.60 per kg of hydrogen produced.
Revenue from carbon credit sales will enable PowerTap to generate cash flow to service debt until they fully establish their revenue from hydrogen sales.
While they would share some of the revenue with the filling stations, the company estimates that for EACH 1,200 kg PowerTap installation in California, they would earn ~$2M worth of carbon credits…and that’s BEFORE selling any hydrogen.
With that much revenue potential in play, PowerTap Hydrogen Capital announced on March 1, 2021 that it had partnered with Carbonomics, a leader in helping clean tech companies maximize the potential of emission reduction credits.
It also has a strong tailwind from a fast-growing market,a major emerging gap in available fueling stations, and the high-profile help of the Andretti Group.
Visit the PowerTap Hydrogen website to learn more about its investment in PowerTap.
Raghu Kilambi, CEO & CFO
Raghu Kilambi is an experienced investor and entrepreneur with over 25 years of global business experience in public and private investments, building businesses and creating shareholder value.
He has raised over $1 billion of equity and debt capital for private and public companies and been involved in many M&A acquisitions and exits. Raghu’s experience includes operational management, financial reporting, corporate governance corporate finance, public offerings, strategic acquisitions and investments, international business development, merchant banking and corporate restructuring in sectors including technology, telecom and mobile.
Most recently, Raghu was Vice Chairman & CFO of California-based Conversion Point (e-Commerce software/services) which was sold in 2 M&A exits in late 2019 and early 2020 after filing a Nasdaq IPO prospectus for an Oppenheimer-led IPO in2019.
In addition, Raghu was previously the Co-Founder, CFO and Chief Strategy Officer of a leading VC-backed first generation application hosting company that grew from startup to $140 million in annual revenues and a peak Nasdaq market capitalization of overUS$2billion. Raghu has also been an investor in companies that were acquired by Yahoo, eBay and CGI.
He graduated with Great Distinction with a Bachelor of Commerce and a Graduate Diploma in Public Accounting from McGill University, and qualified as a Canadian Chartered Accountant (inactive).
Salim Rahemtulla, President
Salim Rahemtulla has over 30 years of private and public sector experience in real estate development, asset management, banking/lending, operations and facilities management.
A former US naval officer, he has managed and lead cross-functional teams in the execution of $2B in public and private sector residential construction projects primarily across Southern California, worked as a construction lender and in loan portfolio management at two major financial institutions, consulted on real estate/affordable housing projects in Los Angeles, and has served as the mission protection/land-use compatibility program manager at a major naval installation with a large-scale military airfield and a deep-draft port.
Over the past decade, Salim has been involved in several real estate and renewable energy start-up companies, most significantly, Foton Technologies, a renewable energy company that has developed a proven clean, green gasification technology to produce electricity using opportunistic biomass feedstock and municipal solid waste and a real estate fund under the auspices of a Southern California-based investment bank. Also, during this time, he supported the Navy and Marine Corps warfighter as a director of asset/facilities management overseeing the planning and development of mission-critical projects at a US naval installation, some of which were in support of RDT&E and mission-focused warfare center facilities projects.
Salim has an undergraduate degree from the University of Southern California (USC) in Economics with an emphasis in Social Sciences and Communication and an MBA from USC’s Marshall School of Business.
Kelley Owen, Chief Operating Officer
Kelley Owen has over 25 years of experience in executive business management and IT consulting, including senior management positions in several corporations.
At Discount Tires, he served as a director and member of the executive management, sharing responsibility for the operation of the company’s 135 locations with over 800 employees throughout California and Arizona. At International Transportation Services (Kline), he acted as director in charge of Information Technology and member of the executive management team operating four terminals with over 500 employees consisting of Long Shore Union members and management personnel transporting cargo worldwide. In addition, he was a senior consultant at Nestlé Corporation working on the implementation of the company’s warehouse distribution system, a nationwide project covering Nestle’s eight distribution centers with a total warehousing capacity exceeding eight million square feet.
Cody Bateman, Technology Advisor
Cody founded Advantex Research Inc. to focus on creating complex simulations to optimize exploration and extraction techniques for the oil & gas industry. During the last 30 years, the company has transformed itself several times while working in 11 countries and serving several government sectors, advanced research facilities, airlines, multi-national pharmaceutical companies, and a full range of organizations in the energy sector.
He began working with NASA at Kennedy Space Center in 2012 on advanced insulation for cryogenic environments. During that time has become a subject matter expert in cryogenic testing and the manufacture of several advanced test instruments used at NASA.
In 2018, the company rebranded itself as Cryotek LLC when it decided to concentrate on the future of liquid hydrogen as the fuel of the future and since that time has become a leader in Cryogenic Engineering by leveraging its long-term relationships with several large partners. The company now focuses on technology commercialization of liquid hydrogen for vehicles, drones, maritime applications, large scale storage, thermal insulation systems and supply infrastructure.
Cody has a BS in Electrical Engineering from Texas A&M and an MBA from Duke University (Top 10 grad).
Dave Rogers, PowerTap Advisory Board
Dave Rogers is the Founder & CEO of Amp Energy, an energy transition platform company. Founded in 2009, Amp has become one of the leading global renewables companies having successfully developed and built over 1.8 gigawatts renewable generation projects, hybrid generation plus battery storage projects, and stand-alone battery storage projects around the world, alongside a further 2.0 GW of generation and 2.2 GWh of battery storage assets in construction or entering construction in 2021.
With the addition of Amp X, its fully integrated proprietary digital energy platform, Amp has emerged as a differentiated and unique global energy transition platform.
Based in Toronto, Canada, with operations throughout North America, Japan, Australia, India, the UK, Iberia and the Czech Republic, Amp’s international team brings deep expertise and thought leadership to every aspect of the energy industry.
Amp has successfully raised over $2.5Bn of ESG-focused capital from global pension funds, two of the Walton family offices, Apollo Group, Power Corp and others.
Prior to Mr. Rogers founding Amp in 2009, he was the head of carbon markets and Front Street Capital, a $3.5Bn investment manager, where he was responsible for the origination, sale and trading of carbon credits both privately and through public exchanges globally.
George Steinbrenner IV, PowerTap Advisory Board
George Steinbrenner IV is the youngest team owner within the NTT INDYCAR Series. His own embrace of practicing sustainability, reinforced by leadership and examples within his family and related businesses, adds to a commitment of following the lead of INDYCAR in having announced a planned move to implement single-source hybrid systems beginning in 2023.
George brings his own long-term view to the ambitious aim of supporting the message of sustainability within motorsport by actively pursuing unique initiatives including running an alternative fuel transporter and companion generator to achieve a carbon neutral footprint, helping to implement comprehensive recycling programs across the INDYCAR landscape, and leading an effort to implement green power at campsites across the INDYCAR schedule.
In 2016, George, in collaboration with Michael Andretti and Andretti Autosport, founded Steinbrenner Racing, an American-based motorsports team competing within the NTT INDYCAR Series and a related and developmental series designed to groom future INDYCAR Series stars. Steinbrenner Racing enters a fifth overall year of competition in 2021 having earned eleven race wins, fifteen poles and twenty-nine total podiums in total.
A member of a family known for winning and success with the New York Yankees, George has shown a passion for racing from an early age along with a commitment toward eventual team ownership by beginning his leadership path as an intern.
Greg Nuttall, PowerTap Advisory Board
Greg Nuttall is one of the founding CEOs of the world’s first waste-to-fuel company, Toronto-based Woodland Biofuels (www.woodlandbiofuels.com).
As Woodland’s CEO, Greg has taken Woodland’s ground-breaking automotive fuel technology from drawing board to proven production. Along the way, he has forged relationships around the globe with governments, key financial players, oil and gas companies, engineering & construction firms, and feedstock providers. Woodland has raised significant institutional capital from USA and Canadian cleantech funds, strategic investors, and Canadian governments.
Prior to becoming CEO of Woodland, Greg was a partner at Rubicon Investment Group, a merchant bank focused on accelerating the growth of the companies it acquires and invests in. Before this, Greg was co-founder and CEO of a leading management consulting firm that helps large and mid-sized organizations in Canada and the United States. At the outset of his career
Greg was an M&A and corporate finance lawyer. As a lawyer he practiced at Clifford Chance, one of the world’s largest law firms, where he was based in London, and at Torys, a leading corporate law firm based in Toronto.
Greg earned his Master of International Laws degree at Cambridge University and is a Pegasus Scholar.
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