(Exclusive) PowerTap and Andretti Group joins for hydrogen fuelling stations in California

PowerTap and Andretti Group partners for hydrogen fuelling stations

PowerTap Hydrogen Fueling has signed an agreement with Andretti Group to install its 1,250-kg hydrogen fuelling stations in California this year.

PowerTap is a hydrogen fuelling infrastructure development company owned by Canada’s Clean Power. Andretti Group is a US-based fuel company operate over 100 facilities across the country.

The deal can promote hydrogen fuelling infrastructure 

PowerTap will install the production and dispensing fuelling stations at the group’s selected fuelling stations in California. It plans to build over 500 station networks across the US, and Andretti can play a key role in promoting technology as well.

The company estimates that currently there is a lack of hydrogen fuelling stations in the US. And there are around 100 hydrogen fuelling stations out of which 41 are located in California. Comparing these with 111,000 fossil fuel-based fuel stations is almost incomparable. The company think that such absence of necessary infrastructure leads to the low adoption of hydrogen as energy. However, there is a tremendous untapped opportunity for the transport sector to explore.

Andretti Group will also get rights to distribute PowerTap’s hydrogen fueling technology to 3rd party gas stations in the US on behalf of PowerTap with mutual agreement on various commercial terms. PowerTap will contribute an initial US$ 1.25 million in the project to accelerate the deployment of its technology.

Biden’s clean energy plans will help the hydrogen market – PowerTap CEO told H2 Bulletin

There is always a discussion on what to have first- hydrogen fuelling stations or fuel cell vehicles. It is like a chicken and egg problem. Hydrogen station would not survive without fuel cell vehicles, and vehicles would not run with hydrogen fueling stations.

PowerTap solution can support to solve the problem as fuelling stations do not have to produce expensive green hydrogen at this stage which can certainly discourage hydrogen car ownerships. However, the current US administration is more environmentally friendly and can support the hydrogen economy more.

“We definitely believe that the Biden administration will have incentives for hydrogen vehicle purchases which will increase demand for hydrogen fuel. Hydrogen is noted in Biden’s clean energy plan.” PowerTap CEO Raghu Kilambi told H2 Bulletin.

When H2 Bulletin asked is hydrogen fuelling station gets any forms of incentives? Mr Kilambi answered “We will get California and federal carbon credits. Hydrogen Fuel has significant cost savings over diesel, and that is why Toyota, Daimler Volvo, Nikola, Hyundai, and others have announced hydrogen long-haul trucks.”

What is PowerTap technology?

PowerTap technology itself depends on natural gas to produce hydrogen on-site. The fuelling production system converts natural gas by using power and water to directly produce high-purity hydrogen at the point of use.

PowerTap CEO Raghu Kilambi told H2 Bulletin: “PowerTap technology is being used in 14 stations private and public across the US. The only public station is near LAX. PowerTap Hydrogen Fuelling Corp. does not own those generation 2 stations. We acquired the PowerTap trademark and all the IP related to the technology and are launching PowerTap 3rd generation product at Andretti California stations in H2 2021.”

When asked how much, on average, a hydrogen fuelling station cost?  “$4/$5 million per station which would co-locate with existing gas and truck stop stations… we can receive gross carbon credit revenues of over $1 million per year once a station is installed in California – even prior to the sale of hydrogen.” Mr Kilambi replied.

Jay Faris

Jay is the special correspondent covering the hydrogen market for H2 Bulletin. Click on the email icon to send me an email or follow me on social media. I am reachable on Phone: +44 (0) 208 123 7812
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