PowerTap Hydrogen Capital Corp. (NEO:MOVE.AQN, OTC:MOTNF, FRA:2K6) provided an update on the development of its Gen3 modular hydrogen production and dispensing unit, noting that with the completion of the engineering design of the PowerTap Gen3 Unit, it has started “the next phase” to prepare for the manufacturing of a prototype.
As previously reported, the group’s wholly owned subsidiary, PowerTap Hydrogen Fueling Corp. has completed the engineering design. The company revealed that it has spent nearly US$2.8 million to complete the blueprint design for the PowerTap Gen3 Unit.
The Vancouver, British Columbia-based company is currently in discussions with third-party manufacturers to build a prototype based on the blueprint design. Due to the intricate customization required to manufacture a prototype that will achieve the functionality of the designed PowerTap Gen3 Unit, the company said it is “evaluating various options” before committing to a manufacturing agreement.
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“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,” added the company. The initial cost per prototype unit to manufacture, deliver and install, including the site costs at the gas stations, is around US$6 million for a 1,250 kg unit.
Before the installation of any PowerTap Gen3 Unit, the company said it must “identify suitable sites for installation, complete a feasibility study, design the site for installation, and obtain applicable permits”. Given the long lead time in getting construction permits from California municipalities for gas stations on which it plans to install its units, the company expects installation of PowerTap Gen3 Units in California to only start in late-2022.
Separately, the company clarified a few of its earlier statements. On January 26, 2021, it had announced that its California-based subsidiary had entered into a definitive agreement with Humboldt Petroleum Inc., Peninsula Petroleum and Colvin Oil (dba GP Energy) to install PowerTap Gen3 Units at select Andretti Group sites. The initial expectation was that the installation would start in 2021.
However, due to the recent completion of the blueprint design for the units and “longer than expected zoning requirements”, the schedule for the commission and installation of the units at the Andretti Group sites will commence in late 2022, clarified the company.
Under the terms of the 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.
The company also noted that its Annual Information Form dated March 8, 2021, stated that PowerTap technology-based hydrogen fueling stations are 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,” it said as a clarification.
The company also clarified that a reference to Advanced Electrolyzer Systems (AES) as a subsidiary refers to PowerTap's 49% ownership of AES.
PowerTap Hydrogen Capital, through its subsidiary, PowerTap Hydrogen Fueling Corp., is focused on installing hydrogen production and dispensing fueling infrastructure in the US. PowerTap’s patented solution has been developed over 20 years. It 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.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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