BOLINGBROOK, Ill. - Hyzon Motors Inc. (NASDAQ: NASDAQ:HYZN), a hydrogen fuel cell technology developer, announced aJoint Development Agreement (JDA) with New Way Trucks to create a fuel cell electric refuse truck for North America. The collaboration aims to develop a Class 8 Fuel Cell Electric Vehicle (FCEV) prototype, combining Hyzon's fuel cell technology with New Way's refuse collection equipment.
The initiative is expected to leverage Hyzon's experience in operating a hydrogen fuel cell refuse truck in Australia since October 2023. The Australian trial with REMONDIS Australia has demonstrated the viability of hydrogen technology as a replacement for diesel in heavy-duty trucks, addressing challenges such as range anxiety and payload limitations.
New Way's Chief Sales Officer, Don Ross, emphasized the significance of the partnership in helping customers achieve sustainability targets. Hyzon's Vice President of Commercial, Steve Boyer, and President, Pat Griffin, echoed the sentiment, highlighting the alignment of the project with customer operational needs and environmental goals.
The two companies plan to start customer trials for the prototype truck in the first half of 2024, with public and private refuse fleets. Hyzon targets the first commercial vehicle deliveries in 2025, contingent on successful trials. The trucks are expected to offer a 125-mile range, 1,200 refuse cart lifts per route, lighter weight compared to battery electric trucks, and a 15-minute refueling time.
In North America, around 120,000 refuse trucks consume over 953 million gallons of diesel annually. Hyzon estimates that integrating FCEVs into refuse fleets can help reduce industry carbon emissions and noise pollution. The performance of the fuel cell-powered refuse trucks is anticipated to be competitive with diesel and natural gas trucks.
This partnership is a strategic step for Hyzon, a global supplier of zero-emission heavy-duty fuel cell electric vehicles, and New Way, the largest privately held refuse equipment manufacturer in North America.
The information provided in this article is based on a press release statement from Hyzon Motors Inc.
InvestingPro Insights
As Hyzon Motors Inc. (NASDAQ: HYZN) forges ahead with its joint development agreement to innovate within the refuse truck market, it's crucial for stakeholders to consider the company's financial health and market performance. Recent data from InvestingPro shows that Hyzon's market capitalization stands at $168.56 million, with a notably high price to book ratio of 0.94 as of the last twelve months leading up to Q3 2023. This suggests that the market values the company's assets fairly, which could be a positive sign for investors looking for asset-backed investments.
However, the financial data also reveals some challenges. With a revenue decline of -71.59% during the same period and a gross profit margin of -2266.96%, it's evident that Hyzon is facing significant headwinds. These figures may reflect the intense competition and high costs associated with developing cutting-edge hydrogen fuel cell technology.
InvestingPro Tips highlight several points that are pertinent to potential investors. Firstly, Hyzon holds more cash than debt on its balance sheet, which may offer some financial flexibility in its operations. Yet, the company is also quickly burning through cash, which could raise concerns about its long-term sustainability. Additionally, with analysts expecting a sales decline in the current year and the stock experiencing high price volatility, there are clear risks associated with investing in Hyzon.
For those considering a deeper dive into Hyzon's financials and future prospects, InvestingPro offers additional insights. There are 19 more InvestingPro Tips available, which can help investors make a more informed decision. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription, and gain access to these valuable tips.
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