Hyliion partners with H2 Energy to advance green energy

AUSTIN, Texas – Power generation technology developer Hyliion Holdings Corp. (NYSE: HYLN) and green hydrogen-focused Victory Clean Energy Inc. (OTC: VYEY) announced a letter of intent (LOI) to collaborate through a non-binding collaboration agreement . As part of the agreement, Victory's subsidiary H2 Energy Group (H2EG) will purchase up to 10 KARNO generators from Hyliion, aiming to enhance its green hydrogen production capabilities.

The KARNO generators are expected to be delivered to H2EG starting in the second half of 2025 and are designed to generate electricity from hydrogen-rich syngas derived from biomass. The output of each unit is expected to be 200 kW, with the total power generation of the five units being 1 MW. In addition, H2EG plans to use the waste heat from the generators to make the manufacturing process more efficient. The agreement also provides H2EG with the option to purchase an additional five KARNO generators following the successful deployment of the first batch.

Christopher Headrick, founder and executive chairman of H2EG, emphasized the importance of green hydrogen produced from renewable energy sources in global sustainability efforts. He said the partnership with Hyliion will increase the efficiency of H2EG’s hydrogen facilities and strengthen their commitment to sustainable development.

Hyliion's KARNO generator is touted as a fuel-agnostic solution, capable of running on a variety of fuels, including hydrogen, RNG, biogas and propane. It is designed to reduce maintenance costs and reduce emissions compared to conventional technologies. Hyliion founder and CEO Thomas Healy expressed enthusiasm for the collaboration and emphasized that KARNO generators are ideally suited to H2EG's requirements.

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The finalized terms of purchase will be detailed in a binding agreement between the parties. The partnership is part of Hyliion’s wider strategy to deliver decentralized generators to various industries such as commercial and waste management, and expand to mobile applications such as vehicles and ships.

The move reflects a growing trend of companies investing in green technologies to support clean energy initiatives. Information about this partnership is based on a press release.

Investment Professional Insights

As Hyliion Holdings Corp. (NYSE: HYLN) begins a promising collaboration with Victory Clean Energy to ramp up green hydrogen production, investors are keeping a close eye on the company's financials and market performance. According to real-time data from InvestingPro, Hyliion's market capitalization is only $229.06 million. However, the company's financials are facing challenges, with a trailing 12-month price-to-earnings ratio of -1.91 through the fourth quarter of 2023, reflecting the company's difficulty in making profits.

InvestingPro Tips indicates that Hyliion holds more cash than debt on its balance sheet, which could provide some financial flexibility to pursue its strategic moves. Additionally, analysts expect sales growth this year could be boosted by a new partnership with Victory Clean Energy. Still, it's worth noting that Hyliion is burning through cash at a rapid pace, and gross margins have been low, as evidenced by its -155.36% gross margin for the trailing twelve months to Q4 2023.

For investors wishing to dive deeper into Hyliion's performance and prospects, 16 additional InvestingPro Tips are available, which can provide valuable insights into the company's future. Interested readers can find these tips by visiting https://www.investing.com/pro/HYLN.For those ready to take their investment analysis to the next level, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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