New Hydra Energy partnership delivers Chemtrade low-cost green hydrogen cheaper than dieselFebruary 23, 2021
The partnership is called an industry first and will unlock an new revenue stream via commercial truck fleets.
Hydra Energy today announced a strategic partnership with Chemtrade, in a first-of-its-kind agreement for low-cost green hydrogen in long-haul transportation.
This new long-term contract is a core component of Hydra Energy’s HaaS business model.
The contract is central to Hydra energy’s Hydrogen-as-a-service (HaaS) business model. It involves providing Chemtrade with low-cost green hydrogen including capturing, cleaning, and compressing the H2.
To start, both firms are concentrating on one Canadian Chemtrade location. That said, the goal is to expand it to other locations across the country. It will provide the clean H2 to commercial truck fleet operators using semi-trucks converted by Hydra. These fleets will be able to obtain the green hydrogen fuel at a fixed price. In fact, that price will be set at 5 percent lower than the cost of diesel.
The low-cost green hydrogen can substantially reduce a fleet’s greenhouse gas emissions.
According to data cited by the companies in the announcement of their partnership, multi-year pilots showed that converting the trucks to hydrogen-injection technology and using green H2 as a fuel source can cut a fleet’s greenhouse gas (GHG) emissions by as much as 40 percent. Furthermore, this conversion and GHG reduction impacts neither the truck’s range or performance. Natural gas distributors will also be able to supplement their fuel with the green hydrogen in order to comply with renewable energy requirements.
“Hydrogen is a significant by-product of our manufacturing operations, but to date, it hasn’t been economical or easy to leverage,” said Chemtrade CEO Mark Davis. “Hydra has presented us with a compelling, cost-effective, and long-term solution to monetize the value of our by-product hydrogen. This project aligns with Chemtrade’s financial and environmental goals: Hydra will pay for and install the required hydrogen capture infrastructure at our site; and, Chemtrade’s byproduct hydrogen will be used to reduce GHG emissions. While it won’t be initially financially material, it has potential in the mid-term and is an exciting opportunity for us.”
Fleet operators using Hydra’s low-cost green hydrogen can simultaneously reduce their fuel costs while more directly reaching their emission targets.