PowerTap named as industry partner to ARCHES
PowerTap Hydrogen Capital Corp. provides an update on certain activities of the Company’s subsidiary, PowerTap Hydrogen Fueling Corp.
PowerTap is pleased to announce that it has been named as one of the industry partners in the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), California’s public-private hydrogen (H2) hub consortium to accelerate the development and deployment of clean, renewable H2 projects and infrastructure. The US Department of Energy will award $8 billion as grants to up to 10 regional H2 hubs to build self-sustaining H2 economies of producers, infrastructure, and users.
In partnership with the Governor’s Office of Business and Economic Development (GO-Biz), ARCHES unites key public and private stakeholders to build the framework for a California renewable, clean H2 hub. The U.S. Department of Energy’s Office of Clean Energy Demonstration has encouraged ARCHES, as one of 33 clean hydrogen hub (“Hub”) concepts (out of 79 concept papers originally submitted in November 2022), to submit a full H2 Hub application by April 7, 2023.
PowerTap’s role as an ARCHES industry partner Hub team member is to build and operate on-site hydrogen production stations for the full range of hydrogen transport fuel cell electric vehicles, particularly long-haul Class 8 trucks. There is no guarantee that ARCHES and/or its consortium members, including PowerTap, will receive any US Department of Energy hydrogen hub grant dollars.
“PowerTap is extremely pleased to be partnering with ARCHES with a goal to deliver clean hydrogen production to current and future California hydrogen transport users. These clean energy projects are essential elements in the process of decarbonization of the transportation sector,” said PowerTap CEO Mr. Raghu Kilambi.
As reported in a press release on November 23, 2022, the PowerTap/T2M Global team submitted a proposal to the Air Quality Mitigation Fund (AQMF) of the Harbor Benefit Community Foundation (HBCF) in the Port of Los Angeles to produce a barge-based fuel cell power cold ironing project, including the production of hydrogen. At its November Board Meeting, the HCBF published the results of its evaluation, and the PowerTap/T2M Global submission was well received.
The HCBF, noting that the PowerTap/T2M Team approach completely avoids the creation of emissions from ships in the port, emphasized the importance of maximizing emission reduction from ships during the demonstration period, particularly in the upcoming Round 3 of funding rounds as the HBCF moves to award the remaining $2M in the AQMF. The Company is pleased to announce that the HBCF has released the Round 3 AQMF Request for Proposal with a due date of February 24, 2023, to which the PowerTap/T2M Team intends to submit a proposal.
In addition to any potential award of government grants to the projects noted above, additional capital may be required for those projects and these funds would be secured by a combination of equity, debt possibly backed by the US Department of Energy, other state subsidies and/grants and subsidiary project financing. The Company has not, as yet, secured such additional financing for the above-mentioned projects. The Company will comment further when additional disclosure is appropriate and/or necessary.
