A new partnership is looking to speed up the adoption of hydrogen in long-haul transportation by offering the clean fuel at a lower cost than diesel.
Hydra Energy and Chemtrade have confirmed a first-of-its-kind strategic partnership for the project that will focus on one Chemtrade’s plants in British Columbia with the potential to expand across the country.
Sharing details of the partnership yesterday (23rd Feb), the companies said the contract is a pillar of Hydra’s Hydrogen-as-a-Service business model and includes Hydra capturing, cleaning, and compressing hydrogen.
As a result of this, commercial truck fleet operators with Hydra-converted semi-trucks will be able to access green hydrogen at a fixed price, five percent below the price they typically pay for diesel.
“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, Chief Operating Officer of Hydra Energy.
“That compares to the same amount of greenhouse gas reductions that the Canadian government forecasts for electric vehicle adoption by 2030.”
David Batstone, Hydra Energy Board Member, added, “Beyond the environmental impact, we’ve learned from trucking operators that they typically only achieve two to five percent operating margins with fuel costs coming in at half of a fleet’s operating expenses.”
“This represents an opportunity for a more economical approach made possible by a strategic partnership like the one we’ve just announced with Chemtrade.”
“We offer the most cost-effective approach for chemical manufacturers to turn an often wasted asset into something of value while delivering hydrogen at below-diesel rates for those commercial truck fleets ready to go green now.”
The flagship Hydra-Chemtrade commercial project will break ground this year, with gas expected to be flowing in 2022.