Hydra Energy partners with Chemtrade to provide commercial truck fleets with green hydrogen
Hydra secures its first partnership with a chemical company to unlock a new revenue stream for hydrogen.
VANCOUVER — Continuing to speed up the adoption of hydrogen in long-haul transportation, Hydra Energy announced a strategic partnership with Chemtrade. The long-term contract is a pillar of Hydra’s Hydrogen-as-a-Service (HaaS) business model and includes Hydra capturing, cleaning, and compressing hydrogen. Initially, both companies are focused on one of Chemtrade’s plants in British Columbia with the potential to expand across the country. Commercial truck fleet operators with Hydra-converted semi-trucks can access green hydrogen at a fixed price, five percent below the price they typically pay for diesel. Multi-year pilots demonstrated an ability to reduce greenhouse gas (GHG) emissions up to 40 percent, using hydrogen-injection technology and fuel source without impacting truck performance or range. Natural gas distributors can also use the green hydrogen to meet renewable content requirements.
Hydra’s ability to deploy stranded hydrogen assets to fleet operators, who can use it to reduce their fuel costs and meet emission targets, opens up new opportunities for chemical manufacturers. The company’s distinctive HaaS model helps commercial fleets reduce costs and emissions with limited risk and no up-front investment. The company installs hydrogen-diesel co-combustion conversion kits into existing semi-trucks and provides the fueling infrastructure for the green hydrogen sourced from chemical producers like Chemtrade at no cost to fleet owners.
“Hydra enables a rapid and affordable transition to cleaner trucking by turning one’s waste into another’s valuable resource. According to a report by Navius Research, Hydra’s model can be expanded to power tens of thousands of trucks and reduce emissions up to six megatons per year in Canada alone,” said Jessica Verhagen, COO of Hydra Energy. “That compares to the same amount of greenhouse gas reductions that the Canadian government forecasts for electric vehicle adoption by 2030.”
Global transportation is currently responsible for 16 percent of GHG emissions, with a significant portion from road transport. In Canada, 10.5 percent of these emissions come from freight transportation. In the U.S, this number increases to 23 percent stemming from medium- and heavy-duty trucks.
The flagship Hydra-Chemtrade commercial project will break ground this year, with gas expected to be flowing in 2022.