PowerTap Hydrogen Announces That Its 49% owned subsidiary, Progressus Clean Technologies Has Executed a Letter of Intent with Alkaline Fuel Cell Power Corp. for Clean Hydrogen Joint Venture Pilot
- Pilot project to provide in-field proof of concept and operational data
- Advancing a potential solution for global utility companies to blend hydrogen and natural gas
- JV structured to support potential future growth and additional partnerships
VANCOUVER, British Columbia and IRVINE, Calif., Oct. 03, 2022 (GLOBE NEWSWIRE) -- PowerTap Hydrogen Capital Corp. (NEO: MOVE) (FWB: 2K6) (OTC: MOTNF) ("PowerTap" or the "Company" or "MOVE") is pleased to provide an update and details on Progressus Clean Technologies Inc. ("Progressus") entering into a letter of intent with Alkaline Fuel Cell Power Corp. (NEO: PWWR) (OTCQB:ALKFF) (Frankfurt: 77R, WKN: A3CTYF) ("AFCP") to complete a joint venture ("JV") pilot project that aims to provide a solution for natural gas utilities to directly power both residential and commercial businesses. AFCP is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech. The JV is intended to provide proof of concept for each company's technologies and assess the ability to combine various Progressus technologies with AFCP fuel cells to serve residential and small building customers across North America. PowerTap owns 49% of Progressus.
"The missions and combined vision of AFCP and Progressus are very complementary to one another. By leveraging the strengths of both organizations, we can more efficiently and effectively solve the growing need for innovative hydrogen solutions. The proposed JV pilot project with AFCP is an active step towards progressing hydrogen innovation and combining the suite of technologies that will ultimately be needed for global hydrogen solutions in the future," said Channce Fuller, Chief Executive Officer of Progressus.
Raghu Kilambi, Chief Executive Officer of PowerTap, the 49% parent company of Progressus added, "We are very pleased with the development of Progressus' business since our initial investment in Progressus as initially announced on July 27, 2021(1)."
Conceptual Description of the Pilot Project
To reduce CO2 emissions around the world, gas distribution companies and municipalities are setting-up projects to inject hydrogen into the local gas distribution grid. This gas mixture generally aims to contain up to 20% hydrogen and its use is targeted for residential and commercial buildings.
AFCP and Progressus will work together to execute a JV pilot project utilizing technologies from each company to provide in-field proof-of-concept, generate operational data that can inform continued development and market opportunities, and establish a platform to support future potential growth and additional partnerships. The exact location of the JV pilot project remains under consideration but, initially, North America will be the focus with secondary priority given to potential future pilots in Europe.
Progressus' technology enables the extraction of dilute hydrogen from gas streams, a critical component as utility companies globally increasingly strive to inject hydrogen into natural gas streams. Progressus represents a solution that can extract the hydrogen at high efficiencies, complementing AFCP's low-cost combined heat and power alkaline fuel cell and generator development.
The JV pilot project is designed to use the Progressus hydrogen separation technology to efficiently extract hydrogen at high purities from the existing natural gas grid, and then convert the purified hydrogen using either AFCP's 4 kW Micro-CHP or 4 kW generator to produce electricity, and potentially heat. This project could be put to immediate use in a residential home or commercial building, providing truly zero-emission power. AFCP has already identified interest from natural gas and electric utilities and municipalities to pilot the concept.
Combining the technologies from both companies offers an ideal potential solution to support the generation of low carbon energy that contributes to the world's clean energy transition.
The energy sector currently accounts for approximately three-quarters of global greenhouse gas emissions and is therefore simultaneously capable of averting the worst effects of climate change(2). To reduce CO2 emissions, gas distribution companies and municipalities are advancing projects that facilitate the injection of hydrogen into the local gas distribution grid as a cleaner energy source.
In the last two years alone, there have been more than two dozen hydrogen injection projects announced in the United States with companies continuing to reinforce additional commitments in early 2022(3). Further, with the passing of the Inflation Reduction Act (IRA), there is massive momentum building for additional investment in clean hydrogen solutions. Beyond the United States, the largest gas utilities around the globe (SoCalGas, Enbridge, ATCO Gas, Snam SpA, Enagas S.A., and Open Grid Europe to name a few) are all actively working on projects to inject hydrogen into their natural gas grids(4).
The proposed pilot project would initially cover one extraction system linked to one 4 kW Micro-CHP or generator system, with expansion to a larger scale in future pilots designed to provide clean hydrogen and power for multiple residential users or commercial applications.
Further to the Company’s new release dated July 30, 2021, the Company announces that it will issue an aggregate of 4,576,600 common shares at a deemed price of $0.10 per share pursuant to an agency agreement entered into with Mulberry Capital Inc. (“Mulberry”) on October 18, 2021 and July 28, 2021 (the “Agency Agreement”). Mulberry is the Company’s exclusive agent with the right to arrange, negotiate and obtain representation for sales in the Middle East. The issuance of shares is being made in lieu of a USD $350,000 cash payment for the first-year anniversary payment due under the Agency Agreement. The common shares are subject to a four month and one day hold period from the date of issuance and are subject to the Neo Exchange's acceptance of final filing documents.
On August 17, 2022, the Company issued an aggregate of 361,453 common shares at a deemed price of $0.29 per share pursuant to the Racing Sponsorship Agreement with Steinbrenner Racing, LLC and Defrancesco Motorsports Inc. The share issuance represented the final payment due for the 2023 sponsorship year. The securities were issued with a four month and one day hold period that will expire on December 18, 2022.
The Company also announces that pursuant to its shareholder approved restricted share unit plan (the “RSU Plan“), it has granted an aggregate of 13,000,000 restricted share units (“RSUs”) to consultants (the “Eligible Parties”) of the Company on September 16, 2022. The RSUs vested on issuance. The RSUs shall entitle the Eligible Parties the ability to acquire one common share (a “Share”) of the Company underlying each such RSU by delivering a notice of acquisition to the Company in accordance with the RSU Plan for a period of 5 years from issuance. In accordance with the RSU Plan, the RSUs were priced at $0.085 based on the previous days trading price.
ABOUT Progressus Clean Technologies
Progressus Clean Technologies (formerly AES-100 Inc.) is a venture stage green technology company focused on the development of novel hydrogen generation and separation technologies. Progressus Clean Technologies owns the exclusive rights and intellectual property pertaining to the Advanced Electrolyzer System for the production of hydrogen from dilute syngas.
ABOUT POWERTAP HYDROGEN CAPITAL CORP.
PowerTap Hydrogen Capital Corp., through its wholly owned subsidiary, PowerTap Hydrogen Fueling Corp. ("PowerTap"), is focused on installing hydrogen production and dispensing fueling infrastructure in the United States. PowerTap’s patented solution has been developed over 20 years. PowerTap 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. There are currently under 100 operational publicly available hydrogen stations in the United States with most of the existing stations purchasing industrial hydrogen from industrial manufacturers and shipping hydrogen to individual stations via tanker trucks.
PowerTap Hydrogen common shares are listed on the NEO Exchange. Please visit the company's profile on the NEO Exchange website at https://www.neo.inc/en/live/security-activity/MOVE#!/market-depth.
Tyler Troup, Circadian Group IR
Raghu Kilambi firstname.lastname@example.org
+1 (604) 687-2038
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This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of PowerTap. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved.
Although the Company believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Forward-looking statements inherently involve risks and uncertainties that could cause our actual results to differ materially from any forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, Progressus’ failure to implement or otherwise achieve the benefits of its proposed business initiatives and plans; the failure of the BioQuest and Progressus to enter into a definitive agreement related to the transaction proposed in the LOI; Progressus' ability to raise the funding required to support its continued operations and the implementation of its business plan; the ability of Progressus to develop effective new products and receive required approvals; competitive factors, including customer acceptance of the Company’s products; and dependence upon third-party vendors, including to manufacture its products.
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