Hydra Energy Secures $15M to Convert Existing Heavy-Duty Trucks to Run on Green Hydrogen
2022-12-01 Update: The $15M committed by Just Business in this article was only partially delivered due to an unforeseen issue of their available funds, which was entirely unrelated to Hydra Energy or its milestones.
Funds from Just Business to scale company’s green hydrogen fuelling infrastructure and hydrogen-diesel conversion kits enabling an up to 40 percent reduction in diesel emissions
As more North American commercial fleets look to reduce tailpipe emissions and fuel costs, Hydra Energy has secured CAD$15 million (USD $12 million) from Just Business to expand beyond pilots and deliver hydrogen-powered trucking today. This funding is to support the further development of Hydra’s initial waste hydrogen capture plant in British Columbia, its fueling infrastructure, and conversion kits in the company’s quest to make hydrogen transport a reality today. This funding round brings Hydra’s total raised to date to CAD $22 million (USD $17.2 million).
By replacing 40 percent of diesel with hydrogen in Canada alone, Hydra could displace the equivalent of approximately 7.1 billion liters (1.9 billion gallons) worth of diesel per year. That’s the equivalent of taking over four million passenger cars off the road each year. After completing extensive on-road testing by professional drivers on commercial routes covering over 200,000 km, Hydra’s flagship HaaS project is scheduled to break ground later this year.
Hydra’s offers truck fleets and commodity haulers Hydrogen-as-a-Service (HaaS), including hydrogen-diesel, dual-injection conversion kits and green hydrogen fuel at fixed discount five percent lower than their existing diesel costs with no up-front investment. With transportation currently responsible for the fastest growth in CO2 emissions accounting for 24 percent of global greenhouse gas emissions, trucking being one of the fastest growing sectors, and zero-emission semi-truck advancements slow to commercialize, Hydra aims to create an economical, low-risk, scalable solution using existing trucks and resources to decarbonize the trucking industry.
“One of the most important industries to be decarbonized is transportation,” said David Batstone, Senior Managing Partner and co-founder of Just Business. “We have full confidence in Hydra’s innovative technology and business model, which is why we invested in an early stage company. We believe that improving this traditionally diesel-heavy industry harnesses the potential of clean fuel now and will help pave the world for the hydrogen revolution in the future. It's the best opportunity we see for commercial fleets to significantly reduce emissions in the near term, without sacrificing any of their truck's performance or payloads. At the same time, these fleets can reap the economic and environmental benefits in the transportation sector today.”
Hydra’s plug-and-play dual-injection system injects this hydrogen directly into the truck’s air intake so that as it pulls for air, it also pulls for hydrogen. Unlike other hydrogen truck offerings, the company offers an end-to-end HaaS solution with long-term fuel contracts at a fixed discount below the cost of what fleet customers pay for diesel. Hydra installs hydrogen-diesel co-combustion conversion kits, which are fully removable and reversible, into commercial fleet trucks within a few days, requiring no modification to the engine block.
“Hydrogen is no longer a fuel of the future. This funding brings Hydra closer to having 65 trucks on today’s roads that deliver significant fuel and emissions savings to our early users,” said Badr Abduljawad, Co-Founder and Chief Innovation Officer. "I co-founded Hydra to make low carbon hydrogen adoption scalable through a business model that’s affordable for fleets to implement. We are grateful to our new investor, Just Business, for supporting us in expanding this vision throughout North America.”
Hydra also installs green hydrogen fueling stations on-site at no cost to the fleet owner. The green hydrogen used by Hydra is sourced from waste hydrogen, a by-product of various manufacturing processes. Rather than venting this element into the atmosphere, Hydra works with reliable partners such as Chemtrade, to capture the gas for consumption by its fleet customers. Excess hydrogen not used by commercial fleets can be sold to natural gas distributors looking to cost-effectively increase the renewable portion of its natural gas.
“Sustainability is a critical priority for both BCTA and our trucking company members – it’s about doing the right thing for our future generations,” said Dave Earle, President & CEO of the BC Trucking Association. “With Hydra’s conversion kits, we not only see the potential environmental and cost savings benefits for fleet owners but also to demonstrate our sector’s commitment to moving to a green, sustainable transportation future.”
Prior to this funding, Hydra Energy received CAD $7 million (USD $5.2 million) in seed funding from private investors and government support from the Sustainable Development Technology Canada (SDTC), the Industrial Research Assistance Program (NRC-IRAP), and InnovateBC.
This news comes on the heels of other milestone achievements from Hydra including executing a significant strategic partnership with Chemtrade and transitioning its leadership to a new phase of growth. As the company moves to a new phase of growth, co-founder Simon Pickup has resigned as CEO and Jessica Verhagen (formerly COO) has been appointed CEO. Verhagen brings a strong track record in finance and business development that will be instrumental in Hydra’s next stage. She has nearly 20 years of experience at the intersection of environment and finance at cleantech companies, impact funds and government.
About Just Business
Founded in 2006, Just Business began by incubating the non-profit Not For Sale as a response to human trafficking and labor exploitation and has continued to invest in and incubate profitable and forward-thinking ventures dedicated to positive impact in the world. This intersection of purpose and profit – bringing dignity to people and the planet – enables our best shot at systemic, global change toward inclusion and sustainability. An ecosystem of ventures clustered around positive social change creates synergy that can elevate all member enterprises to faster growth and larger impact.
