Hyzon Motors ramps up operations

In News2 MinutesBy NZ Trucking magazineAugust 20, 2021

Hyzon Motors is ramping up operations in the wake of its merger with blank-check firm Decarbonization Plus Acquisition Corp., including shipping its first trucks to European customers.

The company said it is also preparing to start its first customer trials in the United States.

Hyzon reported second-quarter earnings last week. It says it is banking on the huge injection of capital from the transaction — more than $500 million — and growing customer orders to take it to positive cash flow.

Hyzon CFO Mark Gordon reported a net loss for the quarter of $9.4 million, including $3.5 million in R&D expenses. It had a negative adjusted EBITDA of $9.1 million. The company has $517 million in cash on hand, enough to reach free cash flow by 2024 without having to sell additional equity.

In addition to manufacturing hydrogen fuel cell powertrains, Hyzon is also investing in hydrogen fuel production hubs, a key piece of infrastructure for technology uptake. In April, the company signed an MOU for a joint venture with renewable fuels company Raven SR for up to 100 hydrogen production hubs. Gordon confirmed the first two will be in the Bay Area.

He also said that the company is on track to deliver 85 fuel cell vehicles by the end of this year, with the company’s first revenue coming next quarter. Orders and memoranda of understanding under contract has grown to $83 million from $55 million as of April, but many of the MOUs are non-binding.

“Many customers are getting their hands on the first fuel cell vehicles they’ve ever seen in the next six to 12 months,” said Hyzon chief executive Craig Knight said.

“That is a genuine kind of technology validation process and the customers need to feel comfortable the vehicles function well in their use case.”