Hyzon (Hyzon or the Company), a U.S.-based high-performance hydrogen fuel cell system manufacturer and technology developer focused on providing zero-emission power to decarbonize the most demanding industries, today announced its second quarter 2024 financial and operating results:
Recent Highlights
- Focused business on large fleet customers in North American Class 8 and refuse markets with highest immediate commercial potential, halting operations in the Netherlands and Australia.
- Launched 200kW Class 8 Fuel Cell Electric Vehicle (FCEV) trial program in July with two large fleets, with cross-continental refuse collection vehicle trial program expected to launch this month; 25 large fleet trials across both platforms planned by end of January 2025, with average of 4,200+ trucks per fleet and 10 fleets of at least 5,000 trucks.
- Delivered one additional Class 8 FCEV to customer Performance Food Group (PFG) for a total of five FCEVs deployed with PFG in California.
- Completed 16 200kW C-Sample Fuel Cell Systems (FCS) in the second quarter for a total of 21 manufactured in 1H 2024, remaining on track for Start of Production (SOP) of 200kW FCS in second half of 2024.
- Delivered average monthly net cash burn of $9.2 million in the second quarter 2024, in line with guidance; estimating further reduction to approximately $6.5 million by year-end upon completion of restructuring actions.
- • Upon shelf effectiveness, executed on first capital raise since going public in July 2021 driving significant improvement in trading volume.
“In the second quarter of 2024, we executed on several strategic initiatives, including focusing our business on the North American Class 8 and refuse markets. This decision positions us to capitalize on immediate commercial opportunities supported by continued U.S. government backing,” said Hyzon Chief Executive Officer (CEO) Parker Meeks. “Hyzon launched our 200kW Class 8 vehicle trial program in July and we expect our refuse collection vehicle trial program to start later this month, marking a critical step toward securing new multi-year commercial agreements with large fleets. Looking at the second half of 2024, we anticipate reaching SOP for our single stack 200kW fuel cell system and 200kW Class 8 fuel cell truck platform. These steps are laying the foundation to accelerate our decarbonization efforts and create long-term shareholder value.”
Second quarter 2024 business highlights
Commercial: large fleet customer trial programs underway
Hyzon delivered one additional 110kW fuel cell truck to Performance Food Group (PFG) in the second quarter, bringing the total to five vehicles deployed in California with PFG. These deployments continue to provide valuable on-road experience. The Company is continuing to work with PFG on an agreement for up to 15 200kW fuel cell trucks following a successful 200kW truck trial, and a possible option to purchase an additional 30 fuel cell trucks – an example of the Company’s large fleet, multi-year commercial order pattern.
Through January 2025, the Company has 25 trials scheduled across the 200kW Class 8 and refuse collection vehicle platforms with customers averaging 4,200+ trucks per fleet, including 10 fleets with at least 5,000 trucks.
Trials of the 200kW Class 8 fuel cell truck began this summer with multiple large fleet customers. The Company has received initial performance data, with FCEVs completing the same full-day operations as diesel trucks, which many major OEM’s battery electric trucks could not complete. In some cases, Hyzon’s fuel cell truck averaged over six miles per gallon (mpg) equivalent, in comparison to four mpg for diesel trucks in the same use case.
In the refuse market, Hyzon unveiled the first fuel cell electric refuse collection vehicle for the U.S. market in May, partnering with New Way Trucks, North America’s largest private refuse equipment manufacturer. The cross-continental customer trial program is expected to launch this month with San Francisco-based waste and recycling management company Recology.
Technology: single stack 200kW fuel cell system C-sample development
Hyzon continues to progress C-sample development of its single stack 200kW fuel cell systems in its Bolingbrook, Ill. facility, remaining on-track for SOP in the second half of 2024. The single stack 200kW fuel cell system offers a lighter, smaller, and more fuel efficient option compared to conventional two-stack systems.
In the second quarter, 16 C-Samples were built, totaling 21 C-Samples in the first half of 2024. Durability testing and facility capability advanced with the commissioning of an additional test stand.
With minimal CapEx remaining to achieve SOP, the facility is expected to reach annual capacity of 700 200kW systems on three shifts. Operations are being optimized ahead of SOP, with capacity expansions planned based on demand, maintaining Hyzon’s asset-light model aligned with customer agreements.
Government: growing support for clean energy initiatives
In the U.S., there continues to be strong support for green initiatives. This is highlighted by the Environmental Protection Agency’s $2.6 billion Clean Ports Program, California Air Resource Board’s HVIP program, the Internal Revenue Code (IRC) Section 45W $40,000 commercial clean vehicle tax credit and the administration’s Hydrogen Hub program – which recently funded its first three regional hubs in California, the Pacific Northwest and Appalachia. The Company has continued to support several Clean Ports applications, the largest of which could yield an order of up to 100 fuel cell trucks, if selected.
Hyzon has also recently submitted an application under the Bipartisan Infrastructure Law’s Advanced Energy Manufacturing and Recycling Grant Program. If selected, the grant could provide up to $19.9 million in a 50% match structure to help fund future expansions of the Bolingbrook fuel cell facility to total annual production of 2,800 fuel cell systems, well beyond the Company’s anticipated cash flow breakeven production rate.
Second quarter 2024 financial updates
“In the second quarter 2024, we executed well on the cost side, while recognizing $0.3 million in revenue compared to zero revenue in the prior-year period,” said Hyzon Chief Financial Officer Stephen Weiland. “Our ongoing cost reduction efforts are evident, with R&D expenses of $9.8 million, SG&A expenses of $25.5 million, and net cash burn of $27.5 million all in the second quarter and all at or below the low-end of our guidance ranges. We remain focused on tightly monitoring our cash burn, driving commercial opportunities with disciplined execution, and pursuing multiple capital raising alternatives.”
As of June 30, 2024, cash, cash equivalents, and short term investments stood at $55.1 million. The Company’s strategic realignment to focus on core North American Class 8 markets and the refuse industry is expected to reduce the average monthly net cash burn to an estimated $6.5 million by year-end based on how the Company is operating today. This realignment includes halting operations in the Netherlands and Australia, under which the Company has incurred or expects to incur charges of approximately $21 million, of which about $4 million is anticipated to be in cash.
In late July, Hyzon raised $4.5 million in gross proceeds via a registered direct offering to increase runway and improve stock liquidity. The Company has also retained PJT Partners as its financial advisor to lead ongoing strategic capital raise efforts and explore a full range of strategic options.
SOURCE: Hyzon
