VANCOUVER, British Columbia and IRVINE, California, September 24, 2021 (GLOBE NEWSWIRE) PowerTap Hydrogen Capital Corp (NEO: MOVE) (FWB: 2K6) (OTC: MOTNF) (“PowerTap” or the “Company” or “MOVE”) the Company is pleased to provide an update on the development of its Gen3 modular hydrogen production and dispensing unit (“PowerTap Gen3 Unit”).
As previously reported in the Company’s press release of July 8, 2021, the Company’s wholly-owned subsidiary, PowerTap Hydrogen Fueling Corp. completed the engineering design of the PowerTap Gen3 Unit. The Company has spent an aggregate of US$2.8 million to complete the blueprint design for the PowerTap Gen3 Unit.
With the completion of the engineering design of the PowerTap Gen3 Unit, the Company has commenced the next phase to prepare for the manufacturing of a prototype. The Company is currently in discussions with third-party manufacturers to build a prototype based on the completed blueprint design. Due to the nature of the technology and customization required to manufacture a prototype that will achieve the functionality of the designed PowerTap Gen3 Unit, the Company is evaluating various options before committing to a manufacturing agreement. The manufacture of a prototype is dependent on the timing and availability of various components, the availability of a manufacturer with the required expertise, and the availability of requisite funding. The initial cost per prototype unit to manufacture, deliver and install, including the site costs at the gas stations, is approximately US$6 million for a 1,250 kg unit.
Prior to the installation of any PowerTap Gen3 Unit, the Company must identify suitable sites for installation, complete a feasibility study, design the site for installation, and obtain applicable permits. At this time, given the long lead time on the granting of entitlements and construction permits from California municipalities for gas stations on which the Company will install its units, the Company anticipates that the commission and installation of the PowerTap Gen3 Units in California will commence in late 2022.
As a result of a review by the British Columbia Securities Commission (“BCSC”), the Company is taking this opportunity to clarify its disclosure with regard to the following matters:
On January 26, 2021, the Company announced that its California-based subsidiary had entered into a definitive agreement (the “Definitive Agreement”) with Humboldt Petroleum, Inc., Peninsula Petroleum, LLC, and Colvin Oil I LLC (dba GP Energy) (collectively, the “Andretti Group”) to install the PowerTap Gen3 Units at select Andretti Group sites. The initial expectation was that the installation would commence in 2021. However, due to the recent completion of the blueprint design for the units and longer than expected zoning requirements (see above), the schedule for the commission and installation of the units at the Andretti Group sites will commence in late 2022. Under the terms of the Definitive Agreement, the Company will initially install its PowerTap Gen3 Units at up to 10 of the Andretti Group properties in California. The Andretti Group was also granted a first right to have a fueling station developed within a ten-mile radius of each location owned by AG.
In consideration for the Andretti Group permitting the Company to develop and/or operate and maintain on-site hydrogen fueling stations at an Andretti Group location during the 15-year term (“Term”), the Andretti Group will be entitled to a minority portion of the gross revenue received in connection with all hydrogen sales, including without limitation, all retail sales (gross margin) and federal and state carbon or similar green incentive related credits from the hydrogen dispensing units at each Andretti Group location (collectively, “Hydrogen Sales Revenue”). In the event that the Andretti Group facilitates a third-party entity entering into an agreement with the Company in connection with the installation of a PowerTap Gen3 Unit on such third-party entity’s property located in the U.S.A. (each a “Distributor JV”), the Andretti Group and such third party shall collectively be entitled to a portion of the Hydrogen Sales Revenue.
Pursuant to the Definitive Agreement, the Andretti Group also has the exclusive right to procure Distributor JVs in the U.S.A. during the Term, provided that the Andretti Group has procured at least fifty (50) Distributor JVs in the first eighteen (18) months after the date the Company has installed at least one (1) fully functional and operational, carbon credit-qualified hydrogen dispensing unit at an Andretti Group location. In connection with the Definitive Agreement, the Company’s subsidiary also entered into a consulting agreement with Peninsula Petroleum LLC for consulting and advisory services to be provided by certain personnel of the Andretti Group, for US$1,250,000.
On December 15, 2020, the Company announced that its California-based subsidiary planned to participate in the California Low Carbon Fuel Standard (“LCFS”) Carbon Credit program as part of its business model, and that the LCFS Carbon Credit program would provide an opportunity to generate revenue even before dispensing any hydrogen from its fueling stations by allowing PowerTap Hydrogen Fueling to sell its earned LCFS credits on an on-going basis on the emission trading markets. On May 14, 2021, the Company announced that PowerTap Hydrogen Fueling expected to qualify for Hydrogen Refueling Infrastructure (“HRI”) credits under the LCFS program as soon as its fueling stations were installed in California and made available to the public. To qualify for HRI credits, the California Air Resources Board (“CARB”) has set out a clear process, which involves an application to CARB and building stations that meet specific criteria (i.e., the station must be open to the public, be available to all drivers, allow all major credit cards, have confirmation from three OEMs that their customers can use the station, and other criteria). The hydrogen itself must meet a certain level of renewable content, and there is a whole range of record keeping and monitoring requirements. HRI credits are available for 15 years from the quarter following CARB’s approval of the application. HRI eligibility is limited to a capacity of 1,200 kg per day per station (i.e. if a station were larger, it could still generate HRI credits but only up to that 1,200 kg per day limit). For more details about the HRI and LCFS program, please refer to the Carbonics memo, “Generating Credits Under California’s Low Carbon Fuel Standard (LCFS),” dated May 13, 2021 at https://powertapfuels.com/pdf/carbon_credits.pdf
The Company’s Annual Information Form dated March 8, 2021, stated that PowerTap technology-based hydrogen fueling stations are located in private enterprises and public stations (near LAX airport) in California, Texas, Massachusetts, and Maryland. The Company wishes to clarify that these fueling stations that are operating use technology created by the previous owners of PowerTap’s technology and that these stations are not owned by the Company or its subsidiary.
On September 3, 2021, the Company provided an update on the developments of AES-100 Inc. (“AES”), the Company’s most recent investment. The Company wishes to clarify that reference to AES as a subsidiary refers to PowerTap’s 49% ownership of AES.
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.
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.
Account Director | AMW PR
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Tyler Troup, Circadian Group IR
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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 ability of the Company to complete any potential investments or acquisitions, if at all, and the timing thereof. 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.