Hyzon Motors Plans Two US Hydrogen Fuel Factories

Hyzon Motors Expands U.S. Fuel Cell Production

Hyzon Motors is initiating plans to manufacture fuel cells, including a vital component essential for powering hydrogen-powered vehicles, across two facilities located within the United States. This strategic move aims to stimulate domestic production on a large, commercial scale.

Facility Development and Recent Developments

The hydrogen truck and bus manufacturer has secured a lease for a 28,000-square-foot facility in Bolingbrook, Illinois, a Chicago suburb, with intentions to expand it by an additional 80,000 square feet. Production at this Illinois location is projected to commence in the final quarter of 2021.

This announcement follows closely on the heels of Hyzon’s declaration of becoming a publicly traded entity through a merger with Decarbonization Plus Acquisition Corporation, a transaction valued at $2.1 billion, made just three weeks prior. Furthermore, it arrives a little over a week after the company revealed its plans to renovate a 78,000-square-foot factory in Monroe County, New York.

Company Background and Market Focus

Despite being a relatively new company name, Hyzon possesses nearly two decades of accumulated expertise. The company was founded in March of the previous year following a spin-off from Singapore’s Horizon Fuel Cell Technologies, which has been dedicated to the development of commercial fuel cell applications since 2003.

In February, Hyzon established an agreement with New Zealand’s Hiringa Energy to deploy up to 1,500 fuel cell trucks on New Zealand roads by 2026. The company is now concentrating its efforts on the North American market for hydrogen fuel cell vehicles.

Acknowledging the current absence of a well-established domestic hydrogen fueling infrastructure, Hyzon is prioritizing customers in the heavy-duty vehicle sector who operate under a “back-to-base” business model.

U.S. Production and Infrastructure Considerations

Hyzon’s decision to establish manufacturing plants within the U.S. is significant, as the nation currently trails Europe and Asia in the production of fuel cell materials. The U.S. also lacks a comprehensive national hydrogen refueling network comparable to those found internationally.

“The availability of hydrogen is considerably greater in regions like Germany and The Netherlands,” explained Hyzon CEO Craig Knight in a TechCrunch interview. “Numerous commercial vehicle stations already exist where refueling is as straightforward as filling up with gasoline in the U.S. While this will become a reality domestically in the near future, we are currently mitigating reliance on extensive hydrogen station networks by focusing on customers with back-to-base operations, requiring only a single hydrogen infrastructure point to fuel a substantial fleet.”

Hydrogen Production and Fuel Cell Components

A significant portion of hydrogen currently produced in the U.S. is “grey hydrogen,” derived from natural gas. However, an increasing number of companies are investing in “green hydrogen,” produced through electrolysis powered by renewable energy sources. Hyzon utilizes both types of hydrogen in its operations.

Hydrogen production capacity remains a key determinant in the scalability of fuel cell manufacturers.

The Chicago facility will be responsible for the design, development, and production of the membrane electrode assembly (MEA), a crucial fuel cell component that initiates the electrochemical reaction necessary for power generation. The company anticipates the facility will be capable of producing enough MEAs to support up to 12,000 fuel cell-powered trucks annually.

Assembly and Partnerships

Completed MEAs will be shipped to the company’s newly established fuel cell stack and system assembly plant in Monroe County, New York, where they will be integrated into complete fuel cells. These fuel cells will then be delivered to a partner truck manufacturer for incorporation into commercial heavy-duty vehicles.

Hyzon’s primary assembly partner in the United States is Fontaine Modification, a subsidiary of Berkshire Hathaway.

Advantages of Fuel Cell Technology

Hydrogen fuel cell technology is proving particularly advantageous in the heavy-duty vehicle sector, as trucking companies are often compensated based on the weight they transport and the speed of delivery. The time required for battery charging and the resulting reduction in carrying capacity make fuel cells a compelling alternative for companies aiming to reduce their carbon footprint.

Future Outlook and Market Potential

Hyzon anticipates positive network effects and economies of scale as hydrogen fuel cell adoption increases, while also foreseeing potentially escalating costs associated with electric battery adoption. While the company has not yet announced plans to enter the light-duty vehicle market, it remains optimistic about the value proposition of hydrogen fuel cells.

“We foresee a point where the incremental cost of adopting battery electric technology will increase, due to limitations in the electricity grid, the size of charging depots, and the capacity to build the necessary infrastructure,” Knight stated. “We believe that a dis-economy of scale will emerge with battery electric systems in high-utilization scenarios, and that even some lighter vehicles will begin to transition to hydrogen. While this isn’t central to our current model, it is our expectation.”

Hyzon is expected to be listed on the Nasdaq exchange under the ticker symbol HYZN in late May or early June.

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