Powertap Hydrogen Capital Corp. said it has signed a strategic manufacturing and licensing agreement with California-based Capstone Green Energy for the prototype manufacturing of its proprietary third-generation hydrogen production and dispensing station.
Powertap said it is focused on meeting the large deficiency in hydrogen infrastructure via its unique Powertap 3 on-site hydrogen production and fueling system.
Each unit is modular in design and utilizes the company's proprietary technology to produce and dispense blue hydrogen on-site. It said its patented solution includes a compact SMR (Steam Methane Reforming) technology to create on-site hydrogen production versus traditional offsite production methods.
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As a result of the new strategic agreement, Capstone Green Energy will manufacture the small footprint product for Powertap for use in fueling stations and as part of Capstone's distributed energy low emission microgrid solutions. The Powertap 3rd generation turns natural gas, including renewable natural gas, into on-site hydrogen and intends to leverage an innovative carbon capture system.
"Since acquiring the Powertap hydrogen fueling brand and technology intellectual property portfolio, Powertap has significantly enhanced the acquired technology to be more efficient, cost-effective and streamlined and is pleased to be launching the Powertap 3rd Generation hydrogen fueling system," Powertap senior advisor David Bray said in a statement.
"In January 2021 we partnered with the Andretti Group given their vast west coast network and dedication to excellent on-site operations. This partnership will allow Powertap to work hand-in-hand with Andretti Group at the site level to drive an exciting customer experience with Hydrogen fueling.
“Today, I am pleased to announce that we entered into a strategic licensing and manufacturing agreement with Capstone Green Energy to enhance our product development efforts and manufacture our commercial hydrogen production and fueling products. We selected Capstone Green Energy as they have the proven product development, certification and manufacturing expertise to assist Powertap in meeting our strategic hydrogen vision."
Concurrent with the start of the manufacturing of the Powertap units, Powertap said it has made initial municipal applications for hydrogen stations co-located at existing gas stations in Northern California and plans to take advantage of recently announced new US federal incentive and funding for hydrogen infrastructure under the recently enacted infrastructure bill.
In addition, it said it will participate in the California Low Carbon Fuel Standard (LCFS) carbon credit program, which provides it with the opportunity to generate revenue prior to dispensing hydrogen fuel from its units, through the sale of earned LCFS credits on the emission trading markets.
"We continue to expand our presence within the ever-changing energy landscape through our complementary network partners, and technologies that enable Capstone Green Energy's customers to achieve their carbon reduction goals at a realistic cost," Capstone Green Energy CEO Darren Jamison added.
"Capstone looked at several hydrogen products and hydrogen conversion technologies. We selected Powertap because their innovative product would eliminate the cost and complication of delivered hydrogen and secure dedicated on-site hydrogen supply for our microturbine systems."
As a distributed energy solution leader, Capstone said its products can be located adjacent to a hydrogen generation source, such as Powertap's offering, reducing the efficiency losses and costs that come with converting and transporting hydrogen.
“Combined with proposed hydrogen production and efficiency investment tax credits, the Capstone on-site solution becomes a low cost, quick to market, best-value option enabling customers to greatly reduce or even eliminate their carbon emissions," Capstone Green chief revenue officer Jim Crouse said.
"Today, hydrogen is believed by many to be the holy grail of carbon-free baseload power and distributed generation.
“As we improve our ability to produce hydrogen economically on site, hydrogen-fueled CHP and microgrids have the ability to revolutionize the energy industry.”
PowerTap’s fueling technology can be used to fuel hydrogen cars, trucks, buses, boats, material handling and other hydrogen vehicles that need modular onsite hydrogen production and fueling technology.
Contact the author at stephen.gunnion@proactiveinvestors.com