VANCOUVER, British Columbia and IRVINE, Calif., Aug. 17, 2022 (GLOBE NEWSWIRE) — PowerTap Hydrogen Capital Corp. (NEO: MOVE) (FWB: 2K6) (OTC: MOTNF) (“PowerTap” or the “Company” or “MOVE”) is happy to offer an replace on the US Inflation Reduction of Act (IRA) of 2022 not too long ago signed by President Biden, which permits PowerTap to develop outdoors of California because the incentives are actually additionally at federal degree.
The Inflation Reduction Act (IRA) of 2022 will end in an funding of $369 billion in vitality and local weather change packages (hyperlink right here) and can keep away from 6.3 billion tons of cumulative greenhouse fuel emissions by 2030 (Princeton University ZERO Lab Preliminary Report: The Climate and Energy Impacts of the Inflation Reduction Act of 2022), amounting to a 40 % annual emissions discount in comparison with 2005 ranges (hyperlink right here). The IRA provides the federal government help that PowerTap and the hydrogen trade has been ready for to prioritize hydrogen as an answer that propels personal sector funding in clear hydrogen. According to not too long ago revealed evaluation from world legislation agency Shearman and Sterling (hyperlink right here), this vital laws positions the USA as among the many best locations on this planet to develop inexperienced hydrogen tasks throughout the worth chain. It will inevitably spur different international locations to develop subsidies of their very own to make sure home manufacturing, and the IRA ought to due to this fact be seen as a momentous enhance to the event of a worldwide hydrogen economy. This vital US authorities funding is a significant step towards decreasing the United States’ greenhouse fuel emissions that results in the conclusion that hydrogen will play a significant half in that effort.
According to detailed evaluation offered by Recharge, the world’s main business intelligence supply for the renewable vitality industries (hyperlink right here), the $433B Inflation Reduction Act of 2022 creates a tax credit score that may pay PowerTap and different clear hydrogen producers as much as $3 per kilogram (adjusted for inflation). PowerTap intends to focus its efforts on maximizing the obtainable tax credit carefully following the factors recognized right here. The measurement of the tax credit obtainable to US clear hydrogen producers is dependent upon the lifecycle greenhouse fuel (GHG) emissions of every undertaking — and extra importantly, on how a lot workers are paid. The fundamental tax credit score fee for “qualified clean hydrogen” is ready at $0.60/kg, with a sliding scale relying on lifecycle emissions — measured in carbon dioxide-equivalent (CO2e) — of the hydrogen produced. Hydrogen manufactured with lower than 0.45kg of lifecycle CO2e emissions per kg of H2 would obtain 100% of the credit score, adopted by 33.4% for 0.45-1.5 kg CO2e/kgH2, 25% for 1.5-2.5 kg and 20% for two.5-4 kg. The lifecycle emissions must be verified “by an unrelated third party,” and solely tasks that begin building earlier than 2033 would qualify, which can present advantages for PowerTap tasks that can start building beginning in 2023. However, the wage requirement within the new invoice appears to be an important a part of the deal — multiplying the scale of the tax credit score by an element of 5. Producers could be eligible for this enhance in the event that they guarantee “that any laborers and mechanics employed by contractors and subcontractors in the construction of such facility… shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor.” Importantly, these lifecycle emissions are calculated from “well-to-gate” — in different phrases, they would come with upstream methane emissions within the manufacturing of blue hydrogen (which is produced from pure fuel with incomplete carbon seize and storage).
With PowerTap’s give attention to the usage of a mix of renewable pure fuel (RNG) and pure fuel to make sure a zero to unfavorable carbon depth for its PowerTap Gen3 modular hydrogen manufacturing and allotting unit (MHPDU), PowerTap’s blue hydrogen is the right resolution for the USA market given the abundance of pure fuel and book-and-claim RNG infrastructure as described in its May 2021 press launch (hyperlink to that press launch right here). With the passage of the IRA, the way forward for hydrogen because the inexperienced gasoline of selection for long-haul heavy-duty transportation and current gasoline cell electrical automobiles is all however assured. Given this and the present actuality that there are solely 100 lively hydrogen fueling stations within the USA, 1000’s of hydrogen fueling stations are wanted now and might be wanted sooner or later.
In addition, this hydrogen USA federal tax credit score that PowerTap expects to qualify for is on high of the State of California LCFS (Low Carbon Fuel Standard) hydrogen refueling infrastructure and allotting carbon credit that PowerTap and different hydrogen producers will obtain (newest LCFS steerage from the State of California is right here).
Raghu Kilambi, CEO of PowerTap famous, “The IRA will allow PowerTap to expand its focus into the rest of the USA (outside of California) due to the needed attractive incentives to build hydrogen infrastructure. We are also pleased that this legislation is awarding federal incentives including tax credits to both green and blue hydrogen producers in the United States. While we believe in green hydrogen (electrolysis) and have several investments in the green hydrogen space, we believe that blue hydrogen is the appropriate solution for the United States for the next decade due to the high cost of electricity that is needed to produce green hydrogen. We agree with Wes Edens’ (Co-Founder, Principal and Co-CEO of Fortress Investment Group, a US$ 50 billion asset manager) recent comments on CNBC that “blue hydrogen has the potential to have a much larger market share in the USA than green hydrogen due to cost advantages and the use of natural gas and renewable natural gas.”
ABOUT POWERTAP HYDROGEN CAPITAL CORP.
PowerTap Hydrogen Capital Corp., via its wholly owned subsidiary, PowerTap Hydrogen Fueling Corp. (“PowerTap”), is concentrated on putting in hydrogen manufacturing and allotting fueling infrastructure within the United States. PowerTap’s patented resolution has been developed over 20 years. PowerTap is now commercializing its third-generation blue hydrogen product that can give attention to the refueling wants of the automotive and long-haul trucking markets that lack hydrogen fueling infrastructure. There are at the moment underneath 100 operational publicly obtainable hydrogen stations within the United States with many of the current stations buying industrial hydrogen from industrial producers and delivery hydrogen to particular person stations by way of tanker vans.
www.PowerTapcapital.com
www.PowerTapfuels.com
PowerTap Hydrogen frequent shares are listed on the NEO Exchange. Please go to the corporate’s profile on the NEO Exchange web site at https://www.neo.inc/en/live/security-activity/MOVE#!/market-depth
Investor Contact:
Tyler Troup, Circadian Group IR
[email protected]
PowerTap Contact:
Raghu Kilambi [email protected]
+1 (604) 687-2038
NEITHER THE NEO EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Notice Regarding Forward Looking Information:
This press launch incorporates “forward-looking statements” or “forward-looking information” (collectively referred to herein as “forward-looking statements”) throughout the which means of relevant securities laws. Such forward-looking statements embody, with out limitation, forecasts, estimates, expectations and aims for future operations which might be topic to various assumptions, dangers and uncertainties, lots of that are past the management of PowerTap. Some assumptions embody, with out limitation, the event of hydrogen powered automobiles by automobile makers, the adoption of hydrogen powered automobiles by the market, laws and rules favoring the usage of hydrogen instead vitality supply, the qualification for carbon credit (together with the supply of credit, advantages, emission reductions, offsets and allowances, howsoever entitled, attributable to the manufacturing, combustion or different use of biogas), the supply of adequate RNG feedstock the Company’s potential to construct out its deliberate hydrogen fueling station community, and the Company’s potential to lift adequate funds to fund its business plan. Forward-looking statements are statements that aren’t historic information and are typically, however not all the time, recognized by the phrases “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and comparable expressions, or that occasions or circumstances “will”, “would”, “may”, “could” or “should” happen or be achieved. This press launch incorporates forward-looking statements pertaining to, amongst different issues, the timing and end result of municipality/county hearings to find out the suitability of the Company’s website designs. Forward-looking data relies on present expectations, estimates and projections that contain various dangers, which may trigger precise outcomes to differ and, in some cases, to vary materially from these anticipated by the Company and described within the forward-looking data contained on this press launch.
Although the Company believes that the fabric elements, expectations and assumptions expressed in such forward-looking statements are cheap based mostly on data obtainable to it on the date such statements had been made, no assurances will be given as to future outcomes, ranges of exercise and achievements and such statements should not ensures of future efficiency.
The forward-looking data contained on this launch is expressly certified by the foregoing cautionary statements and is made as of the date of this launch. Except as could also be required by relevant securities legal guidelines, the Company doesn’t undertake any obligation to publicly replace or revise any forward-looking data to replicate occasions or circumstances after the date of this launch or to replicate the prevalence of unanticipated occasions, whether or not because of new data, future occasions or outcomes, or in any other case.
