Hyzon in $2.6 Billion Deal for Hydrogen Fuel Cell Trucks

One of the biggest names in hydrogen fuel cell truck production, Hyzon, have just entered into a SPAC deal that could be valued as high as $2.6bn.

The partnership will see Hyzon Motors move into an agreement with Decarbonization Plus Acquisition Corp. in the next step forward in the use of hydrogen fuel cell trucks in a more normalized environment. This is not the first time Hyzon Motors has been mentioned in this blog.

This is a Special Purpose Acquisition Companies (SPACs) deal that is very intriguing. SPACs, as companies without any commercial operations, exist purely to raise capital through a public offering that could allow for a takeover of another company in the long-term. Hyzon are a large-scale production firm in Rochester, NY, that spends its time creating semi tractor-trailers and medium-duty trucks which use hydrogen fuel cells.

What happens now?

After the announcement was made, Hyzon’s Co-Founder and CEO, Craig Knight, said via a company statement: “We are excited to partner with DCRB at an important inflection point for our company, hydrogen and society. Deliveries of Hyzon fuel cell powered heavy trucks to customers in Europe and North America will occur this year, and our committed sales pipeline is proof that the world is truly recognizing the need to develop innovative solutions to mitigate climate change and accelerate efforts to move the world economy down the path to net-zero emissions.”

The deal will see Hyzon injected with some $636m in investment, helping to push the company valuation to over the $2bn mark. The aim is to try and ensure that over time more progress can be made, with large scale underwritings coming from groups including Riverstone Energy Limited and Wellington Management. This, then, could be a major step forward in creating a solution that allows for more development of hydrogen fuel cell products.

As Hyzon continues to make a real name for themselves due to their push for hydrogen fuel cell adoption, this could be a crucial step in creating that vital next step for the uptake of hydrogen fuel cells at a more robust, specific level.

Hyzon does face competition from Kenworth, Toyota and Nikola in regard to hydrogen fuel cell big rig trucks. Let the race to a greener future begin!

Citation

https://www.forbes.com/sites/greggardner/2021/02/09/hyzon-a-hydrogen-fuel-cell-truck-maker-in-spac-deal-valued-at-21-billion/?sh=775896b23051

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